Bridging finance for slow house sales

When a slow sale meets a fast decision

House sales are taking longer, and the cost of a deal collapsing is rising. In the first quarter of 2025, more than 78,000 UK transactions fell through, with average sunk costs around £3,493 per deal and a total bill of £275.5 million. That is not just frustrating - it is expensive. When your onward purchase is at stake, waiting for the market to catch up can mean losing the home you want and writing off fees you have already paid.

This is where bridging finance earns its name. It is a short-term loan secured against property that lets you complete a purchase while your sale completes later. Typical completion times are around 38 to 43 days, notably faster than many traditional mortgages. Monthly rates have eased, with options starting near 0.64% to around 0.81% depending on the case. Average loan to value sits close to 53%, with some lenders going higher up to 75% for well-supported cases. Crucially, three in four bridges repay through a property sale, which suits buy-before-you-sell moves.

The market’s direction supports this approach. Lending volumes in bridging have grown, with quarterly totals above £200 million among key contributors and the national loan book forecast to exceed £12 billion by the end of 2025. Investors are active too, using bridging to secure opportunities quickly, which speaks to the product’s flexibility when time is critical.

The real value of a bridge is not just speed - it is certainty when timing slips.

If your buyer delays, your chain wobbles, or an auction deadline looms, bridging can keep your plan on track. It is not automatically the cheapest form of borrowing over many years, but it is designed for months, not decades. With the right exit strategy and clear timelines, it can reduce stress, protect your purchase, and minimise the risk of costly fall-throughs.

Who benefits most right now

If you have found a home you want to buy but your current property is still on the market or stuck in conveyancing, a bridge can remove the bottleneck. It is equally useful if you face a chain at risk of collapse, need to act quickly at auction, or want to refurbish before sale to achieve a stronger price. UK investors and landlords also use bridging to capture time-sensitive opportunities while refinancing or marketing takes place. If you have equity, a defined exit plan, and need certainty within weeks rather than months, bridging is designed for you.

Your choices at a glance

1. Regulated bridge - buy your next home before selling your current residence.

2. Unregulated bridge - investment purchases, refurbishments, or portfolio moves.

3. Chain-break bridge - complete despite delays elsewhere in the chain.

4. Auction bridge - complete within strict timeframes after a winning bid.

5. Light refurb bridge - fund improvements to boost saleability or value.

6. Re-bridge - extend short-term funding while you complete your exit.

Costs, timing, returns and key risks

Can you qualify and how lenders assess

Eligibility for bridging is more flexible than many expect, but the fundamentals matter. Lenders look first at the exit strategy - most commonly the sale of a property or a confirmed refinance. If the plan is to sell, they will review marketing activity, local comparables, agent commentary and your timeline. If you intend to refinance, they will test affordability and the plausibility of mortgage approval once conditions are met.

Security and equity are central. Many loans sit around the low-to-mid 50s for loan to value, with room to stretch for strong cases. A clean title, clear legal work, and a realistic valuation make the difference between a quick yes and avoidable delay. Your credit profile matters, but adverse credit does not automatically end the conversation if the security and exit are solid.

Kandoo works with a panel of UK lenders to match your scenario to the right product, whether regulated for your home move or unregulated for investments and refurbishments. Expect standard ID checks, proof of funds for fees, property details and any supporting documents that strengthen your exit. The better your paperwork, the faster your completion.

From application to completion - the quick route

1. Share your goals, property details and target timelines.

2. Receive an initial illustration with estimated costs.

3. Lender issues terms subject to valuation and legals.

4. Valuation instructed - confirm market value and condition.

5. Legal work progresses on both property and security.

6. Final offer issued after due diligence completes.

7. Funds drawdown and completion scheduled to target date.

8. Exit via sale or refinance and settle the bridge.

Upsides and trade offs

Read this before you proceed

Bridging should solve a timing problem, not create a longer one. Build a realistic calendar, with slack for surveys, searches and buyer administration. If your exit is a sale, ensure the property is competitively priced, well presented and fully marketed. Have a fallback plan if completion drifts, such as reducing price, expanding buyer reach or preparing a refinance. Keep a clear view of your total cost of credit, including valuation, legal and broker fees. Finally, communicate early with all parties - lender, solicitor, agent and buyer - to reduce surprises that can derail your schedule.

Alternatives if a bridge is not right

1. Extended completion or licence to occupy arrangements with the seller.

2. Let-to-buy mortgage on your current home and standard mortgage on the new one.

3. Secured loan or further advance if you have sufficient equity.

4. Family-assisted deposit or short-term private loan with legal advice.

5. Agree a price reduction or incentives to offset timing risk.

Frequently asked questions

Q: How long does a bridge usually take? A: Many cases complete within 38 to 43 days from offer, though complex titles or heavy refurbishments can extend timelines. Early document preparation speeds things up.

Q: What will my monthly rate be? A: Pricing depends on LTV, property type, credit and exit. Competitive cases can start around 0.64% per month, with many sitting near 0.81%. Your personalised quote will confirm costs.

Q: How do I repay the bridge? A: Most borrowers exit through the sale of their property. Others refinance to a standard mortgage once eligibility conditions are met or works complete.

Q: What are the main fees? A: Expect arrangement, valuation, legal and broker fees. Some lenders allow interest and fees to be rolled up and settled at exit, reducing cash outlay during the term.

Q: What happens if my sale is delayed? A: Talk to your broker and lender early. Options include extending the term, re-bridging, adjusting marketing strategy or progressing a refinance if affordability supports it.

Q: Can investors use bridging for refurbishments or auctions? A: Yes. Investment purchases account for a rising share of bridging activity, with auction and light refurb bridges providing speed and flexibility in competitive markets.

How Kandoo helps you move first

Kandoo is a UK-based retail finance broker. We compare a panel of bridging lenders to target fast completions, competitive monthly rates and realistic LTVs aligned to your exit. Share your timeline and objectives and we will provide a clear illustration with total costs, then manage the process through valuation and legals to completion. Ready to move now while your sale catches up? Speak to Kandoo today.

Important information

Bridging loans are secured on property and may be regulated or unregulated. Your property may be repossessed if you do not keep up repayments. Terms, rates and LTVs depend on circumstances and may change. Consider independent legal and financial advice before proceeding.