Bridging finance for unique properties

Why bridging suits unusual UK homes

Bridging finance lets you move quickly when a standout property appears or a chain threatens to collapse. In 2025, conditions are especially supportive. The Bank of England base rate fell to 4.25% in May, sharpening competition among lenders. Average UK property values reached £271,415 in March, up 6.4% year on year, which strengthens equity positions and gives lenders comfort. Most products still cap loan-to-value at around 75%, yet average LTVs sit lower, reflecting prudent underwriting.

Speed is the headline advantage. Recent figures show average completion from offer to drawdown in about 43 days, much faster than a traditional mortgage. That pace matters in auctions where completion is typically required within 28 days and in buy-before-sell scenarios where hesitation can cost you the property. Monthly pricing currently clusters around 0.64%, with regulated transactions forming the majority of activity. In practical terms, that blend of speed and competitive costs makes bridging suitable for time-sensitive purchases across England, Scotland and Wales.

Crucially, bridging can fund properties mainstream lenders will not touch. Homes without a kitchen, those with structural defects, short leases, mixed-use elements or unusual construction can be funded when the asset value and exit plan stack up. Developers use bridging to purchase land, secure planning gains and refurbish assets to a mortgageable standard. It also supports green upgrades to improve EPC ratings, which can unlock better refinancing terms and future-proof a portfolio as efficiency rules tighten.

Understanding cost is not just about the rate. It is about fees, loan term and the certainty of your exit.

For international buyers, bridging provides access at speed. Non-residents commonly complete within two to three weeks, compared with eight to twelve for a standard mortgage. With prime London transactions rising, certainty of funds is often the edge. Across the UK, most borrowers plan to exit by sale within a clear timeframe, with a sizeable minority moving to buy-to-let remortgages once works are complete. If you have the right property, the right plan and the right broker, bridging can be the straightest path from opportunity to ownership.

Who is it for

Bridging suits buyers who need certainty on a tight deadline or who are targeting a property that is currently unmortgageable. That includes homebuyers facing a chain break, investors purchasing at auction, landlords undertaking heavy refurbishments or HMO conversions and developers seeking to capture planning uplift. It can also help self-employed applicants or those with complex income who need time to restructure before refinancing.

International purchasers use bridging to secure UK assets quickly and refinance later on longer-term terms. Owners tackling energy upgrades can use it to lift EPC ratings before switching to a green mortgage. If your priority is speed, flexibility and a clear exit in up to 18 months, bridging is worth a closer look.

Routes you can take

1. Buy-before-sell bridge - release funds to secure your next home before selling your current one.

2. Auction purchase bridge - meet 28-day completion deadlines with proof of funds.

3. Refurbishment bridge - finance light or heavy works to make a property mortgageable.

4. Development bridge - acquire land or sites pending planning or build-out.

5. Commercial bridge - fund short leases, vacant units or unusual commercial types.

6. Foreign buyer bridge - complete UK purchases in two to three weeks.

7. Green upgrade bridge - improve EPC and refinance to better long-term rates.

Costs, impact and risk at a glance

Can you qualify

Eligibility depends on the asset and exit rather than rigid income multiples. Lenders focus on the property value, condition, location and your ability to repay within the agreed term, typically up to 18 months. A clear exit is essential. For many, that is a sale once refurbishments are complete. Others refinance to buy-to-let or owner-occupier mortgages when the property reaches a mortgageable standard and rental or income tests are met.

Regulated bridging applies if the loan is secured on your main residence or a property you or family will occupy. Expect more consumer protection and assessment of affordability. Unregulated bridging covers investment or commercial scenarios with underwriting centred on the asset and plan. Across both, lenders usually cap LTV near 75%, though average leverage is lower.

Credit history matters, but a strong asset and credible plan can offset lighter blips. Specialist brokers such as Kandoo can position the case, compare offers across the market and anticipate legal or valuation hurdles. If you can evidence funds for fees, legal costs and a reasonable buffer for works or delays, you are in a strong position.

From offer to drawdown - the steps

1. Outline your objective, timescales and exit route clearly.

2. Share documents - ID, property details, works scope, costs.

3. Receive terms in principle based on valuation and LTV.

4. Instruct valuation and solicitors to begin due diligence.

5. Finalise structure - interest method, fees, conditions precedent.

6. Satisfy legal checks and insurance requirements promptly.

7. Sign, complete and draw funds to meet your deadline.

Weighing it up

Before you commit

Map your exit with dates, not just intentions. If you plan to sell, sense-check local demand, realistic pricing and average time to complete. If you expect to remortgage, engage a broker early on required loan-to-income, stress tests and minimum property standards. For refurbishments, lock down scope, access, contractor capacity and contingency. Aim to hold at least three months of interest and works buffer. Keep documents in order to avoid legal delays, and consider title issues or short leases that might slow down buyers or remortgage lenders. A measured approach at the start can save weeks later.

Alternatives to consider

1. Agreement in principle on a standard mortgage if the property is already mortgageable.

2. Second-charge loan for short-term capital without replacing your main mortgage.

3. Private investment or joint venture funding for development-heavy projects.

4. Cash buyer partnerships to win auctions, then refinance together post-works.

5. Development finance facilities for larger build costs beyond a simple bridge.

Frequently asked questions

Q: How quickly can a bridging loan complete? A: Recent averages point to about 43 days from offer. Auctions often need 28 days, so get valuation and legal work moving immediately.

Q: What loan-to-value can I expect? A: Most products cap around 75%. The market average sits near 52.79%, reflecting prudent lending and stronger exits.

Q: What does it cost each month? A: Pricing often clusters near 0.64% monthly, plus fees. Many borrowers roll up interest so there are no monthly payments during the term.

Q: What is the typical exit route? A: The majority exit by sale within the term, with a significant share remortgaging to buy-to-let or residential mortgages once works are complete.

Q: Can I use bridging for unmortgageable properties? A: Yes. Bridges frequently fund homes without kitchens, structural issues, unusual builds or short leases, provided the exit is realistic.

Q: Do foreign buyers qualify? A: Non-residents commonly use bridging to complete in two to three weeks, then refinance once the asset and profile suit longer-term lending.

What Kandoo brings to your deal

Kandoo is a UK-based retail finance broker that compares specialist lenders to secure sharper rates, faster decisions and smoother legal progress. We structure your case, challenge valuation hurdles and negotiate fees that can save tens of thousands over the term. Tell us your timeline and exit, and we will align the finance to match.

Next step: Share your property details and target completion date. We will outline your options within hours.

Important information

This guide is for information only and is not personal advice. Bridging loans are secured against property and your home or investment may be repossessed if you do not keep up repayments. Terms depend on your circumstances and product availability at the time of application.