Bridging finance for upsizing

Why upsizers are turning to short term finance

Bridging finance is built for moments when the perfect next home appears before your current one is sold. It provides short term funding so you can buy first and complete the sale of your existing property later. In a market where desirable homes attract multiple offers, speed matters more than ever.

Recent data shows momentum is on your side. The UK bridging loan book is forecast to reach £12.2bn by the end of 2025, up from £10.3bn late last year. Average monthly rates dipped to 0.81% in Q2 2025 as lenders compete, and some quotes have averaged around 0.64% so far this year for well structured cases. Application volumes are up, completions typically take 38 to 43 days from offer, and 72% of brokers expect further growth. This is not a niche option anymore - it is a mainstream tool for chain breaking, auction purchases, and renovations.

For upsizing, the benefits are straightforward. You can secure the new property quickly, use sale proceeds as your exit, and avoid losing out while you wait for a buyer. Higher loan to value options up to around 75% are available, with average LTVs steady near 54% across the market. Exits are clear too: three quarters of bridges repay through property sale, and buy to let remortgages are a common alternative where relevant.

Understanding APR is important, but bridging is about real cash flow. You pay monthly interest for a defined period, plus arrangement, legal, and valuation costs. If you plan carefully, the total cost can be lower than the price of missing the right home.

Speed without guesswork. Certainty without compromising your next move.

Who benefits most from this approach

If you are upgrading to a larger home and need to move quickly, bridging can give you the confidence to proceed before selling. It also suits buyers targeting scarce properties in competitive locations, including London and fast moving regional hotspots. Investors expanding portfolios via auctions or value add projects have leaned on bridging as investment purchases have surged, reflecting stronger buying appetite.

You might be mid chain, time constrained by a seller, or planning refurbishment before moving in. If your exit is realistic - typically the sale of your current property or a remortgage - the short term structure works. Affordability and a credible plan matter more than perfect timing.

Your routes to bridge the gap

1. Regulated bridge to purchase your new main residence before selling.

2. Chain break bridge to secure a property when your buyer falls through.

3. Auction finance to meet 28 day completions on hammered lots.

4. Light refurb bridge for kitchens, bathrooms, or decor pre sale or move.

5. Heavy refurb or conversion bridge for structural works with planning.

6. Investment purchase bridge for upsizers retaining the old home as a let.

Costs, impacts, returns, and key risks

What lenders look for

Eligibility centres on the security property, the exit plan, and your overall position. Lenders assess property type, location, and valuation, including down valuation risk. Your exit should be credible and time bound. For upsizers, that usually means a contracted sale or a realistic listing strategy with agent evidence. If you intend to remortgage onto a residential or buy to let product, expect checks on income, expected rents, and stress rates.

Credit history matters, but imperfect credit is not always a barrier if the security is strong and the exit is sound. Proof of deposit, source of funds, ID, and proof of address will be required, along with solicitors experienced in bridging. Independent legal advice is often mandatory for personal guarantees or company structures. Kandoo can introduce you to lenders that match your circumstances and coordinate the process so legals, valuation, and underwriting move in step.

From enquiry to keys in simple steps

1. Share goals, timeline, and exit plan with your broker.

2. Provide documents for affordability, ID, and property details.

3. Receive terms, compare total costs, and instruct valuation.

4. Engage solicitors and respond quickly to legal enquiries.

5. Final underwriting checks and offer issued for signing.

6. Funds released to complete the purchase on schedule.

7. List or complete sale of your current property promptly.

8. Redeem the bridge or remortgage as your planned exit.

Advantages and trade offs at a glance

Speed matters when chains wobble.

Watchpoints before you press ahead

Take an honest view on saleability and pricing of your current home. If your chosen exit relies on achieving a premium price, build in time and contingency. Agree realistic timelines with your estate agent and align exchange and completion dates to avoid last minute pressure. Consider whether a light refurbishment on the new property is essential pre move or can follow a remortgage to reduce interest costs.

Factor in all fees, not just the headline rate. Arrangement, legal, valuation, and broker fees affect the total. If the market cools, having a secondary exit, such as a remortgage or converting your existing property to a short term let, can reduce risk. Finally, check early repayment terms and any minimum interest period so you are not surprised when your sale completes quickly.

Alternatives if bridging is not the fit

1. Agreement in Principle and delayed completion with the seller.

2. Let to buy remortgage on your current home to release equity.

3. Family gifted deposit or private short term loan with legal advice.

4. Deposit unlock via developer incentives on new builds.

Frequently asked questions

Q: How much can I borrow for upsizing? A: Many lenders will consider up to around 75% LTV, sometimes higher with additional security. The average across the market sits lower, near 54%, reflecting prudent risk management.

Q: What will it cost each month? A: Case dependent, but average market pricing has recently ranged around 0.64% to 0.81% monthly, plus fees. Some loans allow interest to roll up so there are no monthly payments.

Q: How quickly can I complete? A: With documents ready and responsive legals, completions commonly fall between 38 and 43 days from offer. Auction purchases may be prioritised due to fixed deadlines.

Q: What if my sale is delayed? A: Speak to your broker early. Extensions may be possible, though they add cost. Many borrowers plan a secondary exit, such as a remortgage, to protect against slippage.

Q: Will poor credit stop me? A: Not always. Strong security and a credible exit can offset historic issues. Expect closer scrutiny and possibly higher pricing or lower LTV.

Q: Can I borrow for refurbishment? A: Yes. Light refurb is common and can help add value quickly. Heavier works and conversions are available through specialist lenders with appropriate permissions and monitoring.

How Kandoo helps you move first

Kandoo is a UK based retail finance broker that connects you with specialist bridging lenders across the market. We structure your case, compare real total costs, and coordinate valuation and legals so timelines stay on track. Share your target property and exit plan, and we will help you move decisively and repay cleanly.

Important information

All finance is subject to status, affordability, and property suitability. Rates, LTVs, and timelines vary by lender and case. This article is for general information only and is not advice. Seek professional guidance before committing to any credit agreement.