Bridging Loans UK Explained: How and When to Use Them

Bridging Finance · November 2024 · 7 min read

How UK bridging loans work, typical rates and requirements, and when a bridge is the right tool. Clear, no-jargon guidance from a specialist bridging broker.

A bridging loan is short-term secured finance designed to "bridge" a funding gap—typically when you need to act quickly or when traditional mortgage finance isn't immediately available. These loans are secured against property and typically run for 1-24 months.

A bridge allows you to purchase, resolve the issues, then refinance onto a standard mortgage.

Regulated bridging applies when: - The property is or will be your residence - You or a family member will occupy

Unregulated bridging applies to: - Pure investment properties - Commercial premises - Properties you'll never occupy

What is a Bridging Loan?
When to Use Bridging Finance
1. Auction Purchases
2. Chain Breaks
3. Unmortgageable Properties
4. Development and Refurbishment
5. Business Cash Flow
Understanding Bridging Loan Costs
Interest Rates
Interest Payment Options
Additional Costs
How to Secure the Best Bridging Rates
1. LTV Matters
2. Clear Exit Strategy
3. Property Quality
4. Borrower Profile
Regulated vs Unregulated Bridging
Our Bridging Finance Expertise

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Unicorn Capital Advisory is a trading name of Unicorn Capital Advisory LLP (LLP No. OC459692). Finance is arranged for business purposes only and is not regulated by the Financial Conduct Authority.

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