Bridging finance for repossessions

Why short-term finance can stop repossession

When you face mortgage arrears, time is everything. Repossession is not only distressing but often destroys equity built over years. Bridging finance exists for exactly these tight windows. It is a short-term, property-secured loan that can settle arrears, clear a demanding lender, or complete a planned sale or remortgage that needs a little longer.

In the UK, lenders look first for a viable exit strategy. That usually means a confirmed property sale, a buy-to-let remortgage, or another form of refinance. If the exit is credible, funds can arrive quickly. Unregulated refinance cases have completed in under 24 hours in 2025. Regulated bridging in the best cases can finish in around 10 working days. Average completion has fallen markedly, with recent quarters hitting historic lows near 32 days. Compared with traditional mortgages, which can take months, this speed can be the difference between keeping and losing your home.

Speed does not remove risk. It buys breathing space to execute a plan.

Most bridging loans run for weeks up to 12 months, sometimes 24 months. Rates are usually charged monthly, often around the mid 0.6% range per month for strong cases, with arrangement, valuation, and legal fees on top. Loan-to-value is commonly up to 75% on a first charge. Second-charge bridging, which sits behind your current mortgage, is available but carries higher costs and risk because it ranks behind the first lender if the property is sold.

Bridging is no longer a niche tool for developers. It is used by homeowners to stop repossessions, by buyers to meet 28-day auction deadlines, and by investors to fix chain breaks or finish refurbishments. The UK market has matured to multi-billion-pound scale since 2010, with stable lending volumes and specialist lenders that focus on complex, time-sensitive property scenarios.

A clear exit is everything. Data shows around three quarters of bridging loans are repaid by selling property, with the remainder via remortgage routes. If your plan is realistic, bridging can preserve your equity and your credit record while you move to the next stage.

Speed can save equity.

Who is this for right now

If you are a UK homeowner facing court action or have received a notice of arrears, bridging finance may provide the time needed to settle the lender and halt enforcement while you sell or refinance. It also suits landlords with portfolios under pressure, investors looking to buy before they sell, and buyers with auction or chain deadlines. If your credit is imperfect but the exit is strong, specialist lenders may still consider your case. You should be comfortable with property-secured borrowing and understand that failure to repay can result in the loss of your home.

Your funding choices

1. First-charge bridging - lowest relative cost, up to around 75% LTV.

2. Second-charge bridging - sits behind a mortgage, higher rates and risk.

3. Auction finance - bridging tailored to 28-day completion targets.

4. Refurbishment bridging - release funds to finish works before sale or remortgage.

5. Re-bridging or refinance bridging - extend timelines when exits are delayed.

6. Buy-before-you-sell bridging - secure a new home while your sale completes.

7. Commercial bridging - short-term funding for mixed-use or commercial assets.

Costs, timings and risk at a glance

Can you qualify

Eligibility rests on the property, your equity, and your exit. Lenders typically require at least 25% equity for a first-charge case, with sensible loan-to-value after fees. They will scrutinise arrears letters, court timelines, and any sales memorandum or mortgage-in-principle supporting your exit. If you plan to sell, evidence of marketability and achievable pricing matters. If you plan to remortgage, lenders will assess rental cover for buy-to-let or affordability for residential, alongside expected completion timeframes.

Second-charge bridging can work where a first mortgage must remain in place, but pricing is higher because it ranks behind the first lender. That means more risk and stricter equity expectations. For regulated residential bridging, expect enhanced checks and a realistic plan to repay within the term.

Kandoo is a UK-based retail finance broker. We can introduce you to specialist bridging lenders that move quickly, handle complex chains, and understand repossession pressures. With the right documents prepared early, decisions can arrive in 1 to 3 weeks post-valuation, sometimes faster in urgent scenarios.

From application to funds

1. Share your arrears timeline and exit plan in writing.

2. Provide property details, ID, bank statements, and credit info.

3. Obtain a decision in principle with headline terms.

4. Instruct valuation and legal work immediately after approval.

5. Resolve any title or arrears issues raised by solicitors.

6. Sign final documents and agree interest payment method.

7. Funds are released to settle arrears or complete purchase.

Upsides and trade-offs

Next-step suggestions:

• Gather arrears letters, sale evidence, and identification today.

• Outline your exit with dates and contingencies.

• Ask for a decision in principle to confirm viability.

Read this before you sign

Bridging is not a cheap substitute for a mortgage. It is a precision tool for tight deadlines. Build a buffer for valuation shifts, legal delays, and buyer fall-throughs. If you rely on a sale, confirm the marketing plan, buyer status, and realistic completion date, not just the asking price. If your exit is a remortgage, check that affordability or rental cover is achievable at stressed rates. Ask whether interest will be serviced monthly or retained from the advance, and how this affects your available loan size and LTV. Finally, read default clauses and extension fees carefully. Extensions can be granted, but they cost. If your plan has more than one dependency, add a backup exit so you are not forced into a distressed sale.

Alternatives you should compare

1. Negotiating a forbearance plan directly with your current lender.

2. Extending the sale completion date with the buyer and solicitors.

3. Secured personal loan or second mortgage with longer term.

4. Family loan or private investment with documented repayment.

5. Downsizing or accelerated sale with realistic pricing and incentives.

6. Debt advice routes, including formal arrangements where appropriate.

Common questions, clear answers

Q: Can bridging really stop a repossession? A: It can, provided funds arrive in time to clear arrears or redeem the mortgage. Courts may pause enforcement when a credible repayment plan is presented and executed quickly.

Q: How fast can I complete? A: In the best unregulated refinance cases, funds have landed within 24 hours. Regulated loans often complete in around 10 working days if documentation and valuation are ready. Typical cases run a few weeks.

Q: What will it cost me? A: Expect a monthly rate around the mid 0.6% range for strong files, plus 1% to 2% arrangement fees and valuation and legal costs. Total cost depends on term length and loan size.

Q: What if my credit is impaired? A: Bridging focuses on the asset and the exit rather than perfect credit. Adverse credit may increase the rate, but a strong sale or remortgage plan can still secure approval.

Q: Which exit is most common? A: Property sale is the dominant route, accounting for roughly three quarters of repayments. Buy-to-let remortgages and commercial refinance make up most of the rest.

Q: Is second-charge bridging sensible? A: It can be suitable where a first mortgage must stay, but it is costlier and riskier because it ranks behind the first lender in any enforcement. Use with caution and adequate equity.

How Kandoo helps

Kandoo connects you with UK specialist bridging lenders who move at speed and assess complex exits pragmatically. We help you prepare documents, compare terms, and keep legal and valuation steps on track. If repossession pressure is mounting, early engagement can preserve options and protect your equity. Speak to us today for a clear, time-bound plan.

Important information

Bridging loans are secured against property. Your home or investment asset may be repossessed if you do not keep up payments or fail to repay by the agreed date. Terms, rates, and eligibility depend on your circumstances and may change. Always seek independent advice before securing borrowing against your home.