Bridging finance for site acquisition

Why bridging works for buying sites now

Bridging finance lets UK buyers secure property at speed, then refinance or sell once longer-term plans are in place. For developers, investors, and growing landlords, the ability to move first and tidy up later is often the difference between winning a site and missing out. In 2025, the market has proved both resilient and competitive, which is good news if you need certainty and quick completion.

Market data shows gross lending in Q2 2025 held steady at around £199.7 million, despite wider economic noise. Application volumes have grown and brokers report rising confidence. Monthly rates have edged down to around 0.81% on average, with some quoting near 0.64% on suitable cases, reflecting stronger competition between lenders. Completion times are lean, too. Typical bridging can finalise in roughly 43 days, while some quarters have seen averages closer to 32 days, which is markedly faster than traditional mortgages.

This is not just a London story. The sector passed the £10 billion mark in early 2025 and assets are increasingly secured outside Prime Central London, including non-PCL areas and the Home Counties. Purchases have risen as a share of loans, with more deals funding auction buys, refurbishments, HMO conversions, and commercial-to-residential projects. Average loan-to-value sits in the low-to-mid 50s, which supports measured gearing while keeping pricing keen.

For anyone chasing time-sensitive opportunities - an auction lot, a strategic infill site, a refurbishment with clear uplift - bridging can provide the certainty to exchange and complete fast, then exit into a buy-to-let, development facility, or sale. The key is to model your costs in real terms and plan the exit before you commit. When you do that well, bridging becomes a precise tool, not a blunt instrument.

Understanding APR is not just about percentages - it is about what you pay in real money and how quickly you can deploy capital. The right structure protects both speed and margin.

Who this suits

If you are acquiring a UK site where timing is critical, bridging can help you move ahead of slower mortgage processes. It suits experienced investors and developers acquiring at auction, landlords using buy-before-sale strategies, and owner-occupiers navigating a chain break. It is also well suited to projects with clear value-add, such as light refurbishments or planning-led improvements, where short holding costs are offset by uplift. If you are unsure how to frame the deal or compare lenders, a broker can align loan-to-value, rate, fees, and exit to your plan.

Your funding routes at a glance

1. Regulated bridging - for purchases where you or family will live in the property.

2. Unregulated bridging - for investments, developments, or company-owned purchases.

3. Bridge-to-let - short-term funding that rolls into a term buy-to-let.

4. Auction finance - pre-arranged bridging to meet tight exchange and completion deadlines.

5. Refurb bridging - tailored for light works that enhance value and exit prospects.

Cost, timing, returns, and risks

Eligibility in plain terms

Lenders focus on whether the deal stacks up, not just on headline credit scores. They will look at how you will repay, whether that is a sale, a refinance to a buy-to-let or development loan, or a known liquidity event. They will also assess the property type, its location, and the strength of your valuation. In 2025, lenders are active across non-PCL London and the Home Counties, with regional high-value assets attracting strong appetite.

Expect verification of your income or asset base, your company structure if buying via a limited company, and evidence for any refurbishment works. Documentation includes proof of ID and address, bank statements, purchase details, and solicitor information. A realistic LTV - often the low-to-mid 50s - helps keep rates competitive. Clean title, clear planning status, and a transparent exit are the three biggest accelerators of time to completion.

Kandoo can help gather documents, stress test your exit, and compare multiple lenders so you see pricing and terms side by side. The goal is a structure that closes on time, supports your plan, and avoids expensive extensions.

From offer to drawdown in clear steps

1. Scope the site and define the exit with timelines.

2. Share documents and valuation access upfront with your broker.

3. Secure a decision in principle and confirm indicative terms.

4. Instruct valuation and legals in parallel to compress timelines.

5. Resolve title and planning points before completion target date.

6. Sign final documents and draw funds to complete the purchase.

Upsides and watchpoints

What to check before you commit

Speed is only helpful if the numbers hold up. Model monthly costs and fees against realistic timelines, including a contingency for legal or survey delays. Confirm that your exit is credible within the term and that your chosen lender is comfortable with the property type, any refurbishment, and planning status. Title issues, restrictive covenants, and lease complexities can all add time. Make sure your solicitor is experienced in bridging and can work to short deadlines. If you are relying on a refinance, sense-check the affordability and debt service metrics that the term lender will apply, not just today but if rates move. A little diligence before exchange can save weeks later.

Alternatives if bridging is not quite right

1. Development finance - for ground-up or heavy works with staged drawdowns.

2. Buy-to-let or commercial mortgage - slower, cheaper term funding for stabilised assets.

3. Secured business loan - for capital needs not tied to a specific property.

4. Joint venture equity - reduce leverage by sharing risk and upside.

Common questions, answered

Q: How fast can a bridging loan complete? A: Many complete in 4 to 6 weeks. Market averages have been around 43 days recently, with some periods seeing completions near 32 days. Title clarity and responsive legals are key.

Q: What rates should I expect in 2025? A: Competitive cases can see quoted monthly rates around 0.64% to 0.81%, subject to LTV, property type, and exit strength. Lender fees and legal costs still apply.

Q: How much can I borrow against the site? A: Typical LTVs are in the 50% to 60% range, aligned to risk and valuation. Sensible gearing helps secure sharper pricing and a smoother exit.

Q: What are common exit strategies? A: Most borrowers exit by sale or by refinancing to a buy-to-let or development facility. Bridge-to-let products can provide a pre-agreed pathway where suitable.

Q: Is bridging only for London assets? A: No. There has been a clear shift beyond Prime Central London into non-PCL areas and the Home Counties, with strong activity across regional locations.

Q: Can first-time investors use bridging? A: Yes, if the deal and exit make sense. Strong professional support, clear documentation, and a realistic LTV will be important.

How Kandoo helps you move first

Kandoo is a UK-based retail finance broker that compares bridging lenders side by side, pressure-tests your exit, and manages legals and valuation to keep the timeline on track. We aim to secure competitive pricing, sensible LTV, and a clear path to refinance or sale so you can acquire with confidence. Speak to us early to line up terms before you bid.

Important information

This article is for information only and is not advice. Bridging finance is secured on property and your home or property may be repossessed if you do not keep up repayments. Terms depend on your circumstances and lender criteria.