Frequently Asked Questions

A bridging loan is used for short-term, property-backed funding where speed or timing makes a mortgage unsuitable. Common uses include auction purchases, chain breaks, buying un-mortgageable or vacant property, refurbishment or buy rr projects, buy-to-let or HMO investments, and commercial or land purchases, provided there is a clear sale or refinance exit.

Bridging finance typically costs more than a mortgage and is priced monthly, not annually. Expect interest of around 0.6% to 1.5% per month, plus arrangement fees (often 1-2%), valuation fees, and legal costs. Total cost depends on loan length, risk, and structure.

Yes, you can get a bridging loan without a job because UK bridging finance is asset-led, not income-led. Lenders focus on the property security, loan-to-value, and a credible exit strategy such as sale or refinance. Income is usually only assessed if the exit relies on a residential mortgage.

There is no fixed credit score requirement for a bridging loan. UK bridging lenders base decisions on the property security, loan-to-value, and the exit strategy. Credit history is checked for context, but adverse credit alone does not usually prevent approval.

The average cost of a UK bridging loan is higher than a mortgage and typically includes interest of around 0.7%-1.2% per month, a 1%-2% arrangement fee, and valuation and legal costs. The total cost depends on loan duration, property type, loan-to-value, and speed of repayment.

A VAT bridging loan is a short-term loan used to fund the VAT due on a VAT-registered commercial property purchase. It covers the VAT payable on completion and is repaid once the VAT is reclaimed from HMRC, helping preserve business cash flow during the reclaim period.

A regulated bridging loan is secured on a borrower’s main residence or intended main home and is FCA-regulated with affordability and consumer protections. An unregulated bridging loan is used for investment, buy-to-let, commercial property, or land, and is assessed mainly on the property and exit strategy.

Some bridging loans are regulated in the UK. A bridging loan is FCA-regulated when it is secured on a property that is, or will become, the borrower’s main residence. Bridging loans used for buy-to-let, investment, commercial property, or land are typically unregulated.

You get a bridging loan fastest by using a specialist lender that allows expedited underwriting, such as desktop or automated valuations, search indemnity insurance, and joint legal representation, combined with a clear exit strategy and a solicitor-led escalation request where deadlines are critical.

Yes, bridging loans still exist and are widely used in the UK as short-term, property-backed finance. They are used for auction purchases, chain breaks, un-mortgageable properties, refurbishment projects, and other time-critical transactions where a traditional mortgage cannot be arranged quickly enough.

Yes, a bridging loan can affect your credit score because lenders usually carry out a credit check and report the loan to credit reference agencies. Making payments on time and repaying the loan as agreed will not harm your score, but missed payments or defaults can negatively impact it.

VAT loans allow businesses to fund VAT payable on property or asset purchases without tying up working capital. They bridge the timing gap between paying VAT on completion and reclaiming it from HMRC, supporting cash flow, faster transactions, and short-term liquidity management.

A VAT bridging loan is a short-term, property-backed facility used to fund VAT payable on a VAT-registered property or asset purchase. It covers the VAT at completion and is repaid once the VAT is reclaimed from HMRC, typically within a few months, preserving business cash flow.