Bridging Loans

Bridging Loans

Fast, flexible funding for time-sensitive property deals.
Last updated: October 2025

What Is a Bridging Loan?

A bridging loan is short-term property finance used when you need to move quickly. It lets you buy, refurbish, or refinance now, then switch to a longer-term mortgage or sell once your project is ready.

If you are new to this type of finance, you can download our free Bridging Guide to learn how bridging loans work, the stages involved, and what to expect from the process.

Bridging suits properties and situations that mainstream mortgages will not touch at first. Think un-mortgageable condition, complex titles, short leases, or auction timelines. GPS Financial arranges fast, flexible facilities and guides you from first chat to completion.

With over a decade of experience arranging bespoke bridging solutions across the UK, GPS Financial helps clients move quickly, confidently, and with complete clarity on costs and outcomes.

Types of Bridging We Arrange

1. Auction bridging for 28-day and 56-day completions
2. Refurbishment bridging for light to medium works
3. Development finance and exit bridging for property development
4. Chain break bridging to complete your new home purchase when your sale is delayed or falls through
5. Property purchase bridging for rapid acquisitions or opportunistic buys
6. Commercial and semi-commercial bridging for mixed-use or investment properties
7. Second charge and higher LTV options where suitable
8. 100% LTV Bridging Loans where additional security is available, such as another property or asset. This allows clients to fund purchases without a cash deposit, provided the combined loan-to-value across all security remains within lender limits.

Who Uses Bridging Finance

• Investors purchasing to refurbish or flip
  • Landlords expanding or restructuring portfolios
  • Developers funding works or exiting development loans
  • Homeowners solving short-term timing gaps on their own residence

Key Features and Benefits

• Speed: Completion possible in as little as 5 to 10 days
  • Flexibility: Residential, mixed-use, commercial and land considered
  • Short Terms: Usually 1 to 12 months with clear exit strategies
  • Choice of Interest Handling: Retained, rolled, or serviced monthly
  • End-to-End Support: We coordinate lenders, valuers, and solicitors

Recognised as an award-winning specialist broker, we combine market-leading lender access with genuine personal service.

Costs and Considerations

• Rates: From around 0.65% per month, depending on the property, loan size, and borrower profile. Typical rates currently fall between 0.75% and 0.95% for most cases.
  • Fees: Typically from 1% with flexible structures for larger or repeat clients.
  • Valuation and Legal Costs: Vary by case; can be streamlined with indemnified searches where appropriate.
  • Risk: If you fail to complete or miss deadlines you may incur charges or lose deposits. Always ensure timelines are realistic before bidding.
  • Exit Planning: At GPS Financial, we never begin a bridging application without a clear exit strategy in place. Whether the plan is to refinance, sell, or restructure, we help clients map out their exit from day one to ensure the funding works in practice, not just on paper.
  • Speed: Funding can be completed in as little as 5 to 10 days, depending on the lender and legal process.

Top Tips for a Smooth Completion

1. Get a Decision in Principle before making commitments
2. Choose a solicitor experienced in bridging; speed lives in legals
3. Prepare documents early. ID, proof of funds, company details, schedule of works, and builder quotes save days
4. Be clear on your exit; your refinance or sale plan should be agreed up front, but we start with the exit in mind. One less thing to worry about.

Frequently Asked Questions

Can anybody apply for a bridging loan?
Yes. It is specialist finance and higher cost than mortgages, so you need a clear exit and realistic timelines.

How is interest charged?
Bridging interest is quoted monthly. You can retain it within the loan, roll it up, or service it monthly depending on the lender and your circumstances.

How long does it take?
Straightforward cases can complete in 5 to 10 working days. More complex cases take longer due to valuation and legals.

What security can be used?
First charge on the subject property is most common. Second charges and multiple-security structures are possible where suitable.

Can I use bridging for my own home?
Yes. That is regulated bridging. Typical uses include chain breaks or buying before you sell. Advice standards are higher and we will talk you through the process.

Case Study: Buying, Refurbishing, and Refinancing

A landlord purchased a tired ex-rental that was not mortgageable due to its condition. We arranged a short-term bridge, coordinated valuation and legals with an experienced solicitor, and the client completed quickly. After a light refurbishment and new tenancy, the property refinanced onto a competitive buy-to-let mortgage.

Outcome: A fast purchase, uplifted value, and a stable long-term loan.

Why Choose GPS Financial

• Over a decade of property finance experience
  • Whole-of-market access and exclusive terms where available
  • Ethical, transparent advice and personal service
  • Authorised and regulated by the Financial Conduct Authority (FCA 975825)

Whether you are an investor, developer, or homeowner, our team will structure the right solution and guide you every step of the way.

 

Content reviewed by Morgan Stewart, Director

 

 

Ready to discuss your project? Contact our team or download our Bridging Guide today.