Guides
Bridging Loan Guide
Start here for bridging loan costs, interest, eligibility and repayment, with focused guides for each property type and funding question.
- Published
- 13 Apr 2026
- Last reviewed
- 8 Oct 2026
- Reading time
- 4 min
In short
This guide covers what a bridging loan costs, how interest is rolled up, retained or serviced, and what a lender expects of an exit, across residential, commercial, land and auction cases.
A bridging loan is short-term finance secured against property or land, used where a mortgage cannot complete in time or the property does not yet qualify for one. Also called bridge finance or interim finance, a bridging loan is designed to "bridge" a temporary funding gap until a defined exit, a sale, a refinance, or a development finance drawdown, is completed.
Bridging loans are used by homeowners, first-time buyers, property investors, developers, and businesses. They suit time-sensitive purchases, uninhabitable or un-mortgageable properties, land without income, and situations where longer-term finance will be arranged later.
This guide explains what bridging finance is, how the interest and costs work, how quickly loans complete, the loan-to-value available on each security type, and how bridging is used across residential, commercial, land, and business scenarios.
Understand the loan
Start with the loan structure and the rules that apply to your property.
Plan the costs and repayment
Compare the costs, borrowing limits and repayment options before choosing finance.
Prepare your application
Check the evidence and professional support needed for your application.
Bridging loans by scenario
Use the short summaries below to find the relevant guide, or compare what a bridging loan can be used for.
Every bridging scenario runs on the same mechanics, asset-led underwriting, a defined exit, rolled-up interest where cash flow is tight, applied to a different asset. Each scenario below has its own detailed page; the summaries here cover what makes each one distinct.
Residential property bridging finance
Bridging finance is widely used within the specialist residential sector where a standard mortgage is unsuitable due to time pressure, property condition, or transitional circumstances.
Read more about Residential property bridging financeGet in touch about Residential property bridging finance
Commercial property bridging finance
Commercial bridging loans are a core funding solution within specialist commercial property finance, particularly where traditional commercial mortgages are too slow to execute, structurally restrictive, or temporarily unavailable due to asset condition, income profile, or transitional risk.
Read more about Commercial property bridging financeGet in touch about Commercial property bridging finance
Agricultural bridging loan
An agricultural bridging loan can be used to buy a farm quickly where traditional agricultural or commercial mortgages are too slow, too restrictive, or unavailable at the point of purchase.
Read more about Agricultural bridging loanGet in touch about Agricultural bridging loan
Bridging loans for life events
Bridging loans can be used to unlock capital quickly from property to manage major life events and financial pressures without being forced into rushed or distressed decisions.
Read more about Bridging loans for life eventsGet in touch about Bridging loans for life events
Semi commercial property bridging finance
Semi-commercial bridging loans are a core funding solution within specialist semi-commercial property finance, particularly where traditional mortgage products are too slow, overly restrictive, or temporarily unavailable due to asset structure, income profile, or transitional risk.
Read more about Semi commercial property bridging financeGet in touch about Semi commercial property bridging finance
Land bridging finance
Bridging finance for land typically requires bespoke, specialist finance and attract lower loan-to-value ratios than standard residential or commercial property.
Read more about Land bridging financeGet in touch about Land bridging finance
Bridging loan for holiday let
A bridging loan for a holiday let is used to purchase, refinance, or reposition short-term rental property where a standard mortgage is not immediately suitable.
Read more about Bridging loan for holiday letGet in touch about Bridging loan for holiday let
Business bridging finance
Business bridging loans depend on the sector, property and cash flow. The guide covers short-term funding while longer-term finance is arranged.
Read more about Business bridging financeGet in touch about Business bridging finance
More about interest, property and common questions
Current bridging loan rates
See current bridging loan rates and discuss your circumstances with an adviser.