Bridging finance for time-sensitive purchases

The state of play in 2025

Bridging finance is having a defining year. The UK loan book passed £10bn at the end of 2024 and is forecast to reach £12.2bn by the end of 2025. That scale matters because more active lenders typically mean keener pricing, wider product choice, and smoother processes. Completions hit a record late last year and continue to trend upwards, reflecting confidence among investors and homeowners alike.

Monthly rates have edged down to around 0.81% on average in Q2 2025, helped by base rate stability, increased lender competition, and conservative loan-to-value ratios. For many borrowers, the result is clearer affordability on short-term borrowing to secure properties that might otherwise slip away. Speed continues to be the advantage that sets bridging apart. Average completion times sit near 43 days from formal offer and have fallen as low as 32 days in recent quarters when underwriting pipelines move efficiently.

Speed and certainty are the currency of successful property moves.

Use cases are diversifying. Investment purchases rose to nearly a quarter of new bridging in early 2025, while regulated loans for homeowners now account for the majority of activity. That split signals a maturing market serving both buy-to-let portfolios and practical life moves like buying before selling, fixing a chain break, or funding essential refurbishments to make a home mortgageable. Lenders are comfortable with strong exits, commonly from property sale or a buy-to-let remortgage.

Importantly, risk management has improved. Average LTVs remain around the low to mid 50s, with options up to 75% LTV in the right circumstances. That balance supports access without ignoring prudence. Against a backdrop of steady quarterly lending near the £200m mark, borrowers can approach bridging as a reliable tool for time-sensitive decisions rather than a last resort.

In short, if timing is tight and the property case stacks up, bridging finance can provide fast, flexible funding with a clear plan to repay.

Who benefits most

Bridging suits UK buyers and owners who need to act quickly and have a credible exit strategy. Homeowners facing a chain break or wanting to buy before selling can avoid losing a chosen property. Investors use bridges to secure an opportunity, refurbish, and refinance or sell. Developers and landlords can manage cash flow between phases, refinance out of development loans, or convert properties to a mortgageable standard.

If your transaction is time-bound, the property is suitable security, and your exit is realistic within 6 to 18 months, the market’s current pricing and processing speed can work in your favour.

Finance routes to consider

1. Regulated bridge - for homeowners occupying the property.

2. Unregulated bridge - for investments and business purposes.

3. Auction finance - rapid funds to meet 28-day deadlines.

4. Light refurbishment bridge - non-structural works increasing value.

5. Heavy refurbishment bridge - structural changes and planning elements.

6. Development exit bridge - refinance while marketing or letting.

7. No-valuation or AVM bridge - speed-focused on lower LTVs.

8. Green bridging - incentives for energy-efficiency upgrades.

Costs, impact, returns, and risks

Can you qualify

Eligibility is practical rather than theoretical. Lenders assess the asset, the borrower, and the exit. A strong exit might be a property sale already in train, a buy-to-let remortgage post-refurbishment, or a standard residential remortgage once a property is habitable. Credit history matters, but more weight is placed on security value, loan amount, and feasibility of repayment within the term. Expect due diligence on income, existing borrowing, and proof of deposit or equity. Typical first-charge LTVs cluster around the low to mid 50s, though up to 75% is available case by case.

Documentation includes identification, proof of address, bank statements, works schedule if refurbishing, planning or building control where relevant, and solicitor details. Timescales hinge on valuation access and legal work. With a UK-based broker such as Kandoo coordinating packagers, lenders, and solicitors, you can often compress timelines and anticipate issues before they derail completion.

From enquiry to completion

1. Share your timeline, property details, and target loan amount.

2. Agree the likely exit and preferred term with your broker.

3. Receive indicative terms and compare total borrowing costs.

4. Submit full application with documents for underwriting review.

5. Valuation instructed and legal work begins in parallel.

6. Lender issues formal offer subject to final checks.

7. Sign legal documents and satisfy any conditions precedent.

8. Funds draw down to complete the purchase or refinance.

Upsides and trade-offs

Read this before you commit

A bridge should be a means to an end, not a permanent solution. Sense-check your exit against realistic market timelines. If you plan to sell, allow for slower conveyancing and seasonal demand. If you intend to refinance, confirm remortgage criteria in writing and ensure the property will meet minimum standards once works complete. Budget for fees and a contingency, not just the headline monthly rate. Keep legals moving by instructing an experienced solicitor early and responding promptly to enquiries. Finally, align your borrowing with a term that genuinely covers the works, marketing, and completion window you need, not the best-case scenario.

If not a bridge, then what

1. Let-to-buy or buy-to-let mortgage for longer-term hold.

2. Second charge loan secured on existing equity.

3. Residential remortgage with additional borrowing.

4. Development finance for ground-up or heavy works.

5. Personal loan for modest, unsecured requirements.

6. Business loan or overdraft for trading companies.

7. Joint venture equity if leverage is already high.

Frequently asked questions

Q: How much can I borrow on a bridge? A: Loan sizes range widely, with typical maximum LTVs around 50% to 60% on average and up to 75% in strong cases. The property value, exit, and credit profile determine limits.

Q: How quickly can funds be released? A: Many cases complete between 32 and 43 days once an offer is issued, assuming swift valuation access and responsive solicitors. Complex titles or works can extend timelines.

Q: What will it cost each month? A: Current market averages sit near 0.81% monthly, with sharper pricing from around 0.64% for lower-risk cases. Factor in arrangement, valuation, legal, and broker fees upfront.

Q: What is a typical exit strategy? A: Most borrowers repay via property sale or refinance. Recent data shows about three quarters exit by sale and close to a fifth via a buy-to-let remortgage after improving the asset.

Q: Can homeowners use bridging finance? A: Yes. Regulated bridging supports buy-before-sell moves, chain repair, and essential works on a future residence. In 2025, regulated cases form the majority of bridging volumes.

Q: Will poor credit stop me? A: Not necessarily. Sensible LTVs, strong security, and a credible exit can outweigh lighter credit issues. Severe or recent adverse may limit lender choice or increase price.

Q: Is interest paid monthly or rolled up? A: Both are possible. Many borrowers choose retained or rolled-up interest so cash flow is preserved during the term, then settle costs at sale or refinance.

How Kandoo helps

Kandoo is a UK-based retail finance broker with access to competitive bridging lenders across the market. We compare rates, structure terms around your exit, and coordinate valuation and legal work to keep timelines tight. If speed and certainty matter, we help you secure the funds and finish on schedule.

Ready to move quickly? Speak to Kandoo for tailored bridging options today.

Important information

This guide is for general information only and is not advice. Bridging finance is secured on property and your home or investment may be at risk if you do not keep up repayments. Terms and eligibility depend on circumstances and lender criteria.