What is bridging finance?
Bridging finance is a short-term, flexible funding solution used when speed is critical. It bridges the gap between a purchase and a longer-term funding solution, typically running from 1 to 18 months.
Common use cases
- Auction purchases — completing within the required 28-day timeframe
- Chain breaks — buying a new property before your current one sells
- Refurbishment — funding works before refinancing to a term mortgage
- Development exit — repaying development finance while units sell
- Opportunity purchases — moving quickly on time-sensitive deals
The importance of an exit strategy
Every bridging loan requires a clear, credible exit strategy. The most common exits are:
- Sale of the property
- Refinancing to a commercial or buy-to-let mortgage
Without a viable exit, bridging finance can become expensive and risky. Lenders will scrutinise your exit plan carefully.
How fast can bridging complete?
Bridging finance can complete in as little as 5-10 days when circumstances allow, though 2-4 weeks is more typical. Speed depends on valuation, legal work and the lender's processes.