Mortgage guide

Bridging loan terms and regulation questions

Questions about credit history, first-time buyers, regulation, interest payments and loan-to-value.

Bridging loan terms and regulation questions

Answers to common questions about bridging finance. Return to the Bridging Loan Guide for the overview.

Questions and answers

What credit score do I need for a bridging loan?

There is no set credit score. Bridging lenders review credit in context rather than against a threshold, and missed payments, defaults, or CCJs do not automatically prevent approval where the asset and exit are strong.

Can a first-time buyer use a bridging loan?

Yes. Most bridging lenders require no prior experience, which makes bridging useful for first-time buyers purchasing renovation properties or working around mortgage criteria that excludes them.

Are bridging loans regulated?

Some are. A bridging loan is regulated by the FCA when it is secured on a property that is, or will become, the borrower's main residence: in law, where at least 40% of the property is used, or is intended to be used, as a dwelling by the borrower or a close family member. Bridging loans for buy-to-let, investment, commercial property or land are usually unregulated.

Do monthly payments apply to a bridging loan?

Only on serviced-interest structures, where interest is paid monthly subject to affordability. With rolled-up or deducted interest, no monthly payments are made and the interest is settled when the loan exits.

What loan-to-value can I get on a bridging loan?

Up to 90% on residential property, 75 to 80% on commercial, and 50 to 70% on land depending on planning status. With additional security a cross-charge can fund 100% of the purchase price, and genuine below-market-value purchases can reach 100% of the price within 90% of open market value.

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