Bridging finance for self-build projects

Build sooner with smart short-term funding

Bridging finance gives UK self-builders rapid access to capital when timing is critical. Whether you are securing a plot, breaking ground before a long-term mortgage completes, or shoring up a project mid-build, bridging can deliver funds in days rather than months. Lenders typically assess the value of the land, available equity in other property, or forecasted Gross Development Value based on architectural plans. This flexibility means you can act when opportunities arise - buying the right plot, locking in materials, or resolving urgent issues without stalling the schedule.

In practice, facilities can range from £50k to £2m for individuals and developers, with terms from a few weeks to 12-24 months. Rates are quoted monthly and can start around 0.39% for strong cases. While bridging is costlier than a standard mortgage, speed is the draw. It can work as a first-charge facility secured on the land or property, or as a second charge alongside a self-build mortgage to unlock additional liquidity when stage releases are too slow or too rigid.

A clear exit strategy is pivotal. Most borrowers refinance into a self-build or standard mortgage on completion, switch to buy-to-let if planning a rental, or sell the property. Lenders focus heavily on exit viability, which is why robust costings, planning permission, insurance, and a qualified team matter. In 2025, cautious underwriting means lenders typically cap at up to 75% of land value, up to 85% of build costs, or around 70-75% of final GDV - whichever is lowest. Strong, documented plans can sometimes increase headroom, but the discipline of a realistic budget protects you from shortfalls.

Understanding APR is not just about percentages - it is about knowing what you will pay in real terms. Bridging rewards clear plans, transparent costs, and a believable exit.

If you need to move fast - to purchase land, cover overruns, or keep contractors on site - bridging can be the difference between momentum and missed opportunity.

Who benefits most

If you are planning a custom home and need funds quickly to buy land, start foundations, or navigate delays in mortgage stage releases, bridging is designed for you. It also suits homeowners undertaking conversions or major refurbishments who expect to refinance once works are signed off. Mid-project, it can rescue builds facing cost overruns or weather-related delays. Experienced developers use it to bridge to the next tranche of finance, but in 2025 an increasing number of UK homeowners are adopting bridging for personal self-builds where timelines and flexibility are paramount.

Your funding routes at a glance

1. First-charge bridging on land or property - fastest access, secured against land value, equity or projected GDV.

2. Second-charge bridging alongside a self-build mortgage - adds flexibility when stage releases are insufficient.

3. Regulated bridging for land and development costs - useful where title issues or structural challenges delay traditional mortgages.

4. Development finance - for larger, multi-unit or complex UK projects with drawdowns aligned to progress.

5. Government support plus bridging - consider Help to Buy for land under £250k, then use bridging to fund early build stages.

Next step: Decide if you need a single lump sum now or staged drawdowns later - this choice shapes your lender shortlist.

Costs, impact, returns and risks

Can you qualify right now

Eligibility varies by lender, but strong self-build applications share consistent ingredients. Expect to provide full planning permission, architectural drawings, professional valuations, detailed costings, and a credible schedule of works. Lenders will ask for evidence of build insurance and the credentials of your contractor or professional team. Security is central: you may secure the loan against land value, equity in your existing home, or projected GDV. Some lenders accept second-charge positions where a self-build mortgage is already in place and stage releases are slow.

Your exit plan should be watertight. Common routes include refinancing to a self-build or standard mortgage on completion, switching to buy-to-let on certification, or selling the property. Demonstrating the feasibility of this exit - supported by income evidence, anticipated valuations and broker agreements in principle - helps secure approval on competitive terms. For borrowers seeking modest land purchases, remember government Help to Buy support may apply to land under £250k, which can complement bridging at the early stage. Kandoo can connect you with specialist UK lenders aligned to your timeline, budget and regional market.

From enquiry to funds - the practical steps

1. Define the project scope, budget and preferred exit route.

2. Gather drawings, permissions, cost breakdowns and build insurance.

3. Secure an independent valuation including GDV assumptions.

4. Choose first or second charge and confirm available security.

5. Compare quotes, terms, fees and repayment flexibility.

6. Submit application with proof of income and project documents.

7. Legal due diligence, underwriting and offer issuance.

8. Draw down funds, start works, report progress as required.

Weighing it up

Before you commit

Speed is valuable only if the numbers stack up. Stress-test your budget against 2025 lender caps and build in contingency for supply swings and weather interruptions. Lock down the professional team and make sure your contractor can deliver to the schedule that underpins your exit. If you plan to refinance, confirm lending criteria early and track them through the build, as product availability can shift. For land under £250k, explore whether government support reduces upfront cash requirements, then pair bridging to keep momentum. Finally, be clear about fee structures, default interest, and what happens if completion dates move - transparency now prevents expensive surprises later.

Alternatives that might suit better

1. Self-build mortgage with stage releases - cheaper but slower, funds in phases.

2. Development finance - for larger schemes needing structured drawdowns and monitoring.

3. Further advance or remortgage - if timing allows and equity is sufficient.

4. Unsecured home improvement loan - smaller, faster sums for limited works.

5. Joint venture or private investor funding - equity sharing to reduce leverage.

Frequently asked questions

Q: How fast can I get bridging for a self-build? A: With documents ready, some lenders complete in days. Legal checks, valuation and underwriting speed are the main variables.

Q: How much can I borrow in 2025? A: Typically up to 75% of land value, up to 85% of build costs, or 70-75% of GDV, with the lowest figure setting the limit.

Q: Is bridging suitable mid-project if I am over budget? A: Yes. It can plug cashflow gaps until the next stage release or completion, preventing costly work stoppages.

Q: Do I need an exit before I apply? A: Absolutely. Lenders require a viable exit such as refinance to a mortgage, a buy-to-let switch, or a sale on completion.

Q: Are rates fixed or variable? A: Rates are usually quoted monthly and can be fixed for the term. Total cost depends on term length, fees and how quickly you exit.

Q: Can homeowners use regulated bridging? A: Yes. Regulated bridging can fund land purchases and initial works where traditional mortgages are not yet available.

How Kandoo helps you move faster

Kandoo is a UK-based retail finance broker. We match your self-build plan with specialist bridging lenders that understand local land values, GDV and planning timelines. From comparing first or second-charge options to shaping a credible exit, we streamline documentation, pricing and completion so you can start - or restart - with confidence.

Important information

This guide is for general information only and is not advice. Bridging loans are secured on property and may be repossessed if you do not keep up repayments. Terms and eligibility vary by lender and your circumstances.