Bridging finance for stock purchases

Why bridging suits stock purchases in 2025

Bridging finance exists to turn time into opportunity. In a market where good assets sell quickly, being able to exchange and complete before rivals is a genuine edge. In 2025 the UK bridging sector is holding firm, with total quarterly lending around £199.7 million and average loan-to-value near 54%. Rates have eased, with leading deals from roughly 0.81% per month as lender competition and stable base rates ripple through pricing. Application volumes are up year on year, and most brokers anticipate further market growth this year. That combination of steadier pricing, wider product choice and robust appetite makes bridging especially useful for stock purchases when speed is everything.

Stock purchasing takes many forms. Investors are using bridging to acquire below-market-value assets, fund auction buys within 28 days, manage chain breaks, complete title splits and finance light refurbishments ahead of refinancing. Crucially, completions are faster than they have been in years. Average processing times recently hit about 32 days, down significantly on last year, which materially reduces execution risk when timelines are tight. For the right deal, high LTV options up to 75% are available, and in some discounted scenarios funding can effectively cover up to 100% of the net purchase price against market value.

Understanding APR is not just about percentages - it is about real cash outcomes. Bridge pricing blends monthly interest, fees, valuation and legal costs. The headline rate matters, but so does the total cost of credit, the exit route and the holding period. Get those aligned, and bridging becomes a precise tool: acquire quickly, improve or stabilise, then refinance or sell.

Speed, certainty and flexibility - that is the draw. In competitive UK property markets, bridging can be the difference between winning stock and watching it go to someone else.

Next steps: define your timeframe, confirm your exit, and compare offers that fit your risk tolerance, not just the lowest rate.

Who is this for

Bridging for stock purchases is well suited to UK investors, landlords and developers who need fast access to capital without waiting on lengthy mortgage underwriting. It also fits homeowners facing chain breaks who want to secure a new property before selling their current one, and businesses buying premises or converting commercial stock to residential under tight deadlines. If your opportunity is time-sensitive, has identifiable value on completion and a clear exit plan to repay the bridge, this market is designed around your needs.

Kandoo works with a wide panel of UK lenders to match individual scenarios, from auction purchases to refurbishment bridges and regulated refinance for homeowners. If you value a practical, no-nonsense view of affordability, risk and timing, a broker-led approach helps you move with confidence.

Ways to fund your purchase now

1. Bridging loan for auction purchase within 28 days.

2. Refurbishment bridge with staged releases for works.

3. Chain-break bridge for homeowners securing before sale.

4. Investment purchase bridge for portfolio expansion.

5. Development exit bridge to refinance and release equity.

6. Bridge-to-let transitioning to a term buy-to-let.

7. Green upgrade bridge aimed at EPC improvements.

Cost, impact, returns and risks

Do you qualify

Eligibility focuses on the asset, the borrower and the exit. Lenders will assess the property type, location, condition and resale or refinance prospects. They will want to see a credible exit strategy, typically sale or a move to term finance such as buy-to-let or owner-occupier mortgages. Credit history matters, but bridging can be flexible where the asset and plan are strong. Income evidence is often lighter than on traditional mortgages, though affordability and overall indebtedness must still stack up.

For investment purchases, expect to provide company accounts if buying through a limited company, proof of deposit, and evidence of any works budget. Homeowners using regulated bridges for chain breaks or refinance will come under FCA rules, with suitability and affordability checks designed to protect consumers. Valuation and legal due diligence are standard on all cases. Kandoo can help you assemble documentation, compare lenders that fit your scenario, and structure the deal so the exit and timeline align. The clearer your plan, the quicker the approval.

From enquiry to completion

1. Outline your deal, timeline and exit strategy clearly.

2. Share documents - ID, bank statements, property details.

3. Receive terms, compare pricing, confirm preferred lender.

4. Valuation instructed and legal work commences promptly.

5. Lender due diligence and any queries resolved quickly.

6. Final offer issued subject to conditions being satisfied.

7. Sign documents, complete drawdown, exchange and complete.

8. Monitor works or sale, prepare refinance or exit early.

The upsides and trade-offs

Before you commit

Bridging should be engineered around your exit. Model best, base and worst cases for sale price, refinance valuation and timeline. Include a contingency for works, a buffer for interest if timelines slip, and a plan B exit if your first option stalls. If your purchase depends on a discount, confirm it with strong comparables and realistic resale assumptions. For regulated cases, consider the implications for your residential situation, including where you will live if a sale completes later than planned. Finally, check title issues early and choose conveyancers familiar with bridging timescales to avoid last-minute delays when every day counts.

Alternatives to consider

1. Secured business loan against other assets.

2. Buy-to-let or commercial term mortgage with slower completion.

3. Second charge loan to release equity temporarily.

4. Joint venture equity to reduce leverage requirements.

5. Development finance for heavier works beyond light refurb.

FAQs

How fast can I complete a bridging loan?

Recent market data shows average completions around 32 days, with faster outcomes possible when documents, valuation access and legal work are organised from day one.

What rates should I expect right now?

Leading cases start from around 0.81% per month, with pricing set by LTV, property type, credit profile and the strength of your exit strategy. The total cost includes fees as well as interest.

How much can I borrow against the property?

Standard maximum LTV is often up to 75%. For below-market-value purchases, funding can effectively cover up to 100% of the net purchase price, subject to valuation and lender appetite.

Is bridging only for developers?

No. Homeowners, landlords and businesses use bridges for auctions, chain breaks, refurbishments and green upgrades. Regulated bridges for homeowners are overseen by the FCA for consumer protection.

What are typical exit strategies?

Common exits are sale after improvement or refinance to a buy-to-let or owner-occupier mortgage. Lenders need evidence that the exit is realistic within the term agreed.

What documents will I need?

Expect ID, proof of address, bank statements, property details, purchase contract, works schedule and, for companies, accounts and director information. A valuation and legal due diligence are standard.

How Kandoo helps

Kandoo is a UK-based retail finance broker with access to a wide lender panel. We assess your objectives, stress test the exit, and source terms that balance speed, cost and flexibility. From auction day timelines to refurbishment releases, we handle the details so you can focus on the deal. Ready to move? Ask Kandoo for personalised bridging options today.

Important information

This guide provides general information and is not personal advice. Bridging loans are secured against property and your home or investment may be at risk if you do not keep up repayments. Always consider independent legal and financial advice before proceeding.