Bridging Loan
Call us on 0808 231 1073, Lines open 24 hours, 7 days a week
Whatever your requirements are, we have a team of experts who can advise you on the best mortgage for your needs. With a large team of advisers we are well equipped to provide advice on niche or specialist mortgages.
Bridging Loan
Bridging finance is an extremely useful tool for investors and home owners alike, enabling you to
proceed in situations (such as securing your dream home) that would otherwise not be possible.
Our specialist finance adviser will be able to explain the feasibility, process and cost of bridging
finance to you so that you can make an informed decision.
Property purchase
A person may need to secure bridging finance in order to purchase a property before they have sold their current property. This can be a useful option if the person needs to move quickly or if they are unable
Renovations
A homeowner may need to secure bridging finance in order to fund renovations on their property. This can be a useful option if the renovations will increase the value of the property and the homeowner is able to secure a traditional mortgage or refinance once the renovations are complete.
Business expansion
A business may need to secure bridging finance in order to fund expansion or cover unexpected expenses. This can be a useful option if the business is unable to secure a traditional loan or if it needs to act quickly in order to take advantage of a business opportunity.
Bridging finance is an extremely useful tool for investors and home owners alike, enabling you to proceed in situations (such as securing your dream home) that would otherwise not be possible.
Our specialist finance adviser will be able to explain the feasibility, process and cost of bridging finance to you so that you can make an informed decision.
A bridging loan is a short-term finance option that helps you complete a property purchase before selling your existing one or while waiting for funds to be released. The loan is secured against property and usually repaid in full at the end of the term, either through sale proceeds, refinancing, or other funds. Interest is charged monthly, and you can either pay it each month or roll it up to settle at completion.
A bridging loan can be useful if you need quick access to funds to secure a property or complete a chain-break purchase. It’s most effective when you have a clear exit strategy – for instance, selling another property or refinancing onto a mortgage. Flagstone’s advisors can help you assess whether a bridging loan suits your circumstances and long-term plans.
Bridging loans come with higher costs and short repayment periods (usually 6–12 months). If your property sale or refinance is delayed, you could face extra fees or need to extend the loan. You’ll also be paying interest on two loans at once if you still hold your original mortgage.
Typical bridging loan rates range from 0.5 % to 1.5 % per month (around 6 %–18 % APR) depending on your loan-to-value (LTV), term, and credit profile. You’ll also pay arrangement, valuation, and legal fees, plus a possible exit fee when the loan is repaid. Flagstone’s team calculates all costs upfront so you know the total commitment before proceeding.
To apply for a bridging loan, you’ll need to provide details of the property, its valuation, the amount you wish to borrow, and – most importantly – your exit strategy (how you’ll repay the loan). Lenders also review your credit history and the security’s value. A specialist adviser like Flagstone can identify suitable lenders and handle the application from start to finish.
You can often receive a decision in 24–48 hours, with funds released in one to three weeks depending on the lender, property valuation, and legal checks. Working with an experienced broker can speed up the process, especially when deadlines are tight or chains are at risk of collapsing.
Rates for bridging loans are usually quoted monthly, ranging between 0.5 % and 1.4 % per month, influenced by loan amount, term, and risk level. The lower the LTV and the stronger your exit strategy, the better the rate. Flagstone will compare deals across the market to find the most competitive rate for your scenario.
Most lenders require you to retain at least 20 %–30 % equity in the property after the loan is taken out. Borrowing is typically capped at 70–80 % of the property’s combined value to ensure adequate security. Flagstone will assess your assets and repayment route to confirm the minimum equity you’ll need.
Yes, bridging loans are usually interest-only, with interest either rolled up and paid at the end, or serviced monthly during the term. The capital is then repaid in one lump sum once the property sale or refinance completes. Your adviser can help choose the repayment structure that best fits your exit plan.
A bridging loan is best used when timing is critical. For example, buying a new property before your current one sells, purchasing at auction, or funding short-term refurbishment projects. It’s not designed as long-term finance, so you should have a clear exit plan before committing. Flagstone’s brokers will ensure a bridging loan is suitable before proceeding.
