Can I borrow the interest as well as the purchase price?

Usually — that is what retained or rolled interest means. The lender calculates the interest for the term and either deducts it at drawdown or adds it to the balance each month. Both reduce what you receive on day one or increase what you repay at the end. If you can service the interest monthly from other income, the facility is cheaper. Worth modelling before you choose.

Will a lender bridge a property with no kitchen or bathroom?

Yes — that is one of the standard uses. A property that cannot be mortgaged in its current condition can still be bridged, because the lender is underwriting the asset's value and your exit, not its habitability. Expect the valuation to report on both a current and a post-works basis, and expect the works schedule and budget to form part of the submission.

What happens if my exit slips?

Speak to us before the term expires, not after. Most lenders will consider an extension where the delay is evidenced and the exit still credible — a sale agreed but held in conveyancing, for example. Extensions usually carry a fee and sometimes a rate change. Where an extension is not available, refinancing onto another bridge is more expensive but far cheaper than sitting on a default rate.

What will this cost me in fees?

You will see every number before you commit: the lender's arrangement fee, the valuation, both sets of legal costs, any exit fee and our own fee, set out on one page against your expected redemption date. Our fee is agreed with you in writing at the point we present terms, and on the great majority of cases it is payable on completion — so it is paid out of a facility that has actually worked for you.

Do I need a personal guarantee?

On a corporate borrowing entity, almost always. An SPV with no trading history and one asset gives a lender nothing to pursue, so guarantees from the directors are standard. What is negotiable is scope — capped guarantees, and guarantees limited to fraud, wilful default and misrepresentation, exist on some facilities. Worth asking about, and worth independent legal advice before signing.

Bridging finance

Short-term debt secured against property, priced on the asset and repaid from a defined exit rather than from trading income.

Speak to a broker today

A bridge buys you time, and used well that is exactly what a deal needs. It comes into its own when the date will not move and the asset is sound, with an exit you can already see. Getting that exit properly evidenced is where a broker earns their fee, and it is the first thing we will look at with you.

The parameters

Where this product sits.

Ranges across the market, so you can sanity-check any quote — ours or anyone else’s — before you take it seriously.

Gross LTV: Up to 75%; Gross includes rolled interest and fees, so the cash you actually receive is materially less.
Typical term: 3–24 months; Longer terms exist but attract term-loan pricing. Watch for minimum-term charges.
Security: 1st or 2nd charge; Second charge is available, priced considerably higher, and needs the first lender's consent.
Arrangement fee: 1–2%; Plus valuation, both sets of legals and, on some facilities, an exit fee on redemption.
Interest: Retained · rolled · serviced; Retained interest is deducted at drawdown and reduces net proceeds pound for pound.

These are indicative market ranges rather than a quotation — they are here so you can sanity-check any offer you are shown. Your own terms will be priced on the asset, the borrowing entity, your trading history and the exit, and we will put real figures in front of you on the first call.

Typical cases

What it is used for.

Auction purchases
A 28-day completion does not care whether your term lender has finished underwriting. A bridge completes on the asset and the title, and refinances afterwards.
Unmortgageable stock
No kitchen, no bathroom, short lease, structural work outstanding. A term lender will not lend on it in that condition; a bridge funds the purchase and the works, and the term facility follows.
Chain breaks and deadlines
Where a sale you were relying on has slipped and the purchase has not. The bridge covers the gap and is repaid when the sale completes.
Refinance before expiry
Where an existing facility is running out and the replacement will not be ready in time. Cheaper than the default rate on the facility you are leaving.

In detail

How it works in practice.

How a bridge is actually priced

Bridging is priced monthly, not annually, and the monthly rate is only part of the cost. Add the arrangement fee, the valuation, your solicitor, the lender's solicitor and — on some facilities — an exit fee charged as a percentage of the loan when you redeem.

Two facilities quoted at the same monthly rate can differ by several thousand pounds once those are counted. The one worth having is often the dearer headline rate with no exit fee and no minimum term, because a bridge redeemed in month four on a facility with a six-month minimum is a facility you pay six months on.

We give you the total cost of the facility to your expected redemption date, in writing, next to the alternatives. That is the only number that lets you compare two offers honestly.

Regulated and unregulated bridging

A bridge is regulated where the security property is, or will be, occupied by you or an immediate family member — broadly, 40% or more of it. Regulated bridging is a different lender panel, a slower process and a different set of protections.

Everything else — investment property, trading premises, land, purchases into a limited company — is unregulated, and that is where most of what we arrange sits.

It is worth establishing on the first call, because a regulated case placed with an unregulated lender costs two weeks and a valuation fee. We will tell you which side of the line you are on straight away, and where a case needs a regulated adviser we will introduce you to one rather than press on.

The exit is the whole case

Underwriters do not lend against your intention to sell. They lend against evidence: a sales agent's appraisal with comparables, or a term lender's agreement in principle with the conditions listed.

Where the exit is a sale, expect to be asked what happens if it takes twice as long as you think. Where it is a refinance, expect the bridging lender to want the term lender's criteria checked against your case before they draw down — not after.

Building that evidence before submission is most of what we do on a bridge, and it is why a well-packaged case gets a better rate than the same deal presented raw.

Before you sign

Four things worth checking.

Minimum terms
A three-month minimum on a facility you intend to redeem in six weeks doubles your interest cost. Always ask, and get the answer in writing.
Gross versus net
A 75% gross LTV facility with retained interest and fees can put around 68% of value in your hand. Budget from the net figure.
Exit fees
Charged on redemption, usually as a percentage of the loan or the facility. They never appear in the headline rate.
Default rates
If the exit slips past term, the rate typically steps up sharply and applies from day one of the overrun. Ask what it is before you sign.

Questions