Bridge to let mortgage

A Bridge to Let mortgage is a short-term finance product designed for landlords and property investors who want to purchase, improve, and then rent out a property. It combines the speed of a bridging loan with a pre-agreed Buy to Let mortgage exit, allowing you to move quickly on opportunities while securing long-term funding in advance.

These products are ideal for:

• Auction purchases with tight deadlines
• Refurbishment projects (light to moderate works)
• Un-mortgageable properties (e.g. no kitchen or bathroom)
• HMO conversions, title splits, or delayed refinance needs

You can borrow up to 75% of the purchase price or current value on day one. Once the property is improved or ready to let, you can refinance at up to 80% of the Gross Development Value (GDV)—the projected end value of the property post-works.

The lender’s valuer will assess both the current value and GDV upfront, based on your Schedule of Works (SOW), which should include a detailed breakdown of proposed improvements, costs, and timelines. This valuation is fixed at the start and won’t be updated later, so it’s essential for borrowers to ensure their SOW is realistic and well-presented.

A major benefit of Bridge to Let finance is that only one valuation and one legal process is required for both the bridging and Buy to Let stages—saving you time and money. Legal fees are payable once, and there’s no need for a second application, valuation, or solicitor on exit.

Because the Buy to Let mortgage is typically pre-agreed, you get a clear and assured exit strategy. This makes Bridge to Let a powerful tool for both first-time landlords and experienced investors who want fast funding, flexible terms, and a seamless transition into long-term letting.

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A Bridge to Let mortgage is a short-term property finance solution that allows investors and landlords to purchase, improve, and then retain a property as a rental. It combines a bridging loan with a pre-agreed Buy to Let mortgage, giving you fast access to funds on day one and a smooth, planned exit onto long-term finance once the property is ready to let.

This type of Bridge to Let loan is ideal for auction purchases, refurbishment projects, unmortgageable properties, or deals that need completing quickly. You can typically borrow up to 75% of the current value on day one, and refinance up to 80% of the Gross Development Value (GDV) once the works are complete.

The key advantage is simplicity, Bridge to Let mortgage lenders arrange one valuation and one legal process for both stages, helping you avoid duplicated costs and delays. These Bridge to Let products are designed to make transitions from short-term to long-term Buy to Let finance faster, cheaper, and more predictable.

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Yes, you can get a bridging loan for a buy-to-let property, especially if the property isn’t currently suitable for a standard Buy to Let mortgage. Bridging finance is commonly used by investors who need to purchase quickly (e.g. at auction), carry out refurbishments, or secure a property that’s un-mortgageable in its current condition.

A popular option is a Bridge to Let loan, which combines short-term funding with a pre-agreed exit onto a Buy to Let mortgage. These Bridge to Let products are designed to save time and costs by using one valuation, one legal process, and one application across both stages. Many Bridge to Let mortgage lenders allow you to borrow up to 75% on day one, and refinance up to 80% of the completed property’s value once it’s ready to let.

So if you’re looking to buy, improve, and hold a rental property, a bridging loan can offer the speed and flexibility you need, especially when paired with a clear exit strategy.

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The cost of a bridging loan typically starts from around 0.55% per month, although rates can vary depending on the lender, loan size, property type, borrower experience, and the strength of your exit strategy.

In addition to the monthly interest, most lenders charge a product fee—also known as an arrangement or facility fee—which is usually around 2% of the loan amount. This fee can often be added to the loan and is typically paid on redemption (when the loan is repaid), rather than upfront.

Why the Product Fee Matters:
It directly impacts the true cost of the loan, especially for shorter-term bridging deals

Because it’s usually a percentage of the total facility, even small differences in the fee can significantly affect your overall repayment

When added to the loan, it reduces the net amount you receive unless the loan is structured to cover it

Keep in mind, bridging loans also come with valuation fees, legal costs, and sometimes exit fees—so it’s essential to review the total cost of borrowing, not just the monthly rate.

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No, you don’t usually need a salary to get a bridging loan, unless you’re choosing to service the interest monthly. Most bridging loans don’t rely on income or affordability checks in the same way traditional mortgages do, because they’re secured against the property and repaid through a sale or refinance.

If you’re not servicing the interest monthly, the lender will use either retained or rolled-up interest, meaning you don’t make monthly payments. Instead:

With retained interest, the lender calculates all the interest due for the loan term upfront and deducts it from the loan amount. For example, if you borrow £100,000 and £8,000 interest is retained, you’ll only receive £92,000.

This reduces the net loan released, so you’ll often need a larger deposit to make up the shortfall—especially if you’re purchasing close to the maximum loan-to-value (LTV).

So, while a salary isn’t required for most bridging loans, having one may help if you want to service the loan monthly and maximise your borrowing power. Otherwise, the loan is based more on the property, exit strategy, and available equity than your income.

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No, most bridging loans do not require a guarantor. Bridging finance is typically secured against property, so lenders focus on the value of the asset and your exit strategy (how you’ll repay the loan), rather than personal guarantees from others.

However, in some cases, a personal guarantee may be required, especially if the loan is being taken out by a limited company (known as a special purpose vehicle or SPV). This means the director may be personally liable if the company cannot repay the loan.

A guarantor—someone separate from the borrower who promises to repay if you default—is not usually needed unless:

• You have poor credit or limited experience
• You’re borrowing through a corporate structure without strong backing
• The lender feels the risk needs additional security

In most standard bridging deals, especially those involving experienced investors and strong assets, no guarantor is required.

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A bridging loan is a short-term finance option designed to help you purchase or refinance property quickly, especially when speed, flexibility, or property condition rule out traditional mortgages. Like any financial product, it comes with both benefits and risks.

Pros

• Fast access to funds – Approval in 24–48 hours, with completion in as little as 5–10 days
• Flexible lending criteria – Ideal for auction purchases, uninhabitable properties, or refurbishment projects
• No monthly payments – With rolled-up or retained interest, you can defer repayment until the end of the term
• Exit-based lending – Approval is based on your strategy to repay (sale or refinance), not income
• Short-term use – Perfect for bridging the gap until longer-term finance is available

Cons

• Higher costs – Monthly rates from 0.55%, plus arrangement fees (around 2%) and legal/valuation fees
• Short-term pressure – Terms typically range from 6 to 18 months, so a solid exit plan is essential
• Valuation sensitivity – If the lender’s valuation or rental estimate is lower than expected, it can reduce your loan amount
• Lower net loan if interest is retained – Interest deducted upfront means more deposit may be required

Bridging loans are best suited to experienced buyers or investors with clear objectives and timelines. When used correctly, they can be a powerful tool, but careful planning is key.

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The typical repayment period for a bridge loan ranges from 1 to 36 months, depending on the lender and the purpose of the loan. Most bridging loans are short-term by design, with common terms between 6 and 18 months, but some lenders now offer extended terms of up to 36 months for more complex projects or larger developments.

The exact term offered will depend on factors such as:

• Your exit strategy (e.g. refinance or sale)
• The property type and condition
• Loan-to-value (LTV) ratio
• Your experience and financial profile

While shorter terms often come with lower rates and fees, a longer term can provide more flexibility—especially for planning applications, extensive refurbishments, or longer sales timelines.

Regardless of the term, most bridging loans can be repaid early without penalty, making them a flexible tool for property investors and developers.

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Yes, a Bridge to Let loan is a popular way for landlords and investors to finance a Buy-to-Let property that isn’t yet mortgageable. Whether you’re buying at auction, refurbishing, or securing a property that needs work, this type of finance gives you fast access to funds, with a pre-agreed exit onto a Buy-to-Let mortgage once the property is ready to let.

Bridge to Let products are ideal for time-sensitive purchases and value-add projects. You can borrow up to 75% of the current value on day one, and refinance up to 80% of the post-works value (GDV). A single valuation and one legal process cover both the bridge and the Buy-to-Let stages, saving you time and money.

The lender’s valuer will assess both the current value and future rental income, which is key to stress testing your refinance. If the valuer’s projected rent comes in lower than expected, it could reduce the amount you can borrow on exit—so accurate planning is crucial.

Working with experienced Bridge to Let mortgage lenders through a whole-of-market broker ensures you get the right structure, rate, and exit plan for your project.

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While bridging loans are a powerful tool for fast property purchases and short-term finance, they do come with some key risks and costs that borrowers should be aware of.

The most notable downside is cost. Bridging loans typically carry higher interest rates than standard mortgages, and you’ll also face upfront fees like valuation, arrangement, and legal costs. Although interest is often rolled up and repaid at the end, the overall cost can still be significant.

Bridging finance is also short-term, usually between 6 and 18 months, so timing is critical. If your exit strategy—such as refinancing onto a Buy to Let mortgage or selling the property—falls through or is delayed, you may be forced to repay the loan before you’re ready.

Another key risk is valuation dependency. The lender will base the loan amount on a valuer’s assessment of both the property’s current value and future potential. If the valuer returns a lower figure than expected, it can limit how much you can borrow and affect your ability to refinance—especially if you’re relying on rental income for affordability.

In short, bridging loans can be highly effective when used correctly, but they require strong planning, a realistic exit strategy, and careful financial management. If you’re unsure, consider Bridge to Let products, which offer more structure and certainty for investors planning to hold onto the asset.

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For most bridging loans, lenders typically offer up to 75% loan-to-value (LTV), meaning you’d need a 25% deposit. However, it’s also possible to get bridging finance with a much lower deposit—or even no deposit at all—depending on the deal structure.

In some cases, lenders will fund up to 100% of the purchase price, usually when:

The property is being bought below market value (BMV) – If you’re securing a deal significantly under its open market value, the lender may lend against the market value, not just the purchase price. This can reduce or eliminate the need for a deposit.

You offer additional security – If you’re willing to put up another property as collateral (cross-charge), many lenders will offer 100% bridging loans, even if the purchase is at full market value.

You’re an experienced investor with a strong track record – Some lenders are more flexible with professional landlords or developers, especially when the exit strategy is solid (e.g. a pre-agreed sale or refinance).

So while many borrowers will need a deposit of 10–25%, others may qualify for no-deposit bridging loans—especially when purchasing BMV properties or using multiple assets as security.

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Not necessarily. While some bridging loans can be repaid monthly, most are designed to offer flexible repayment options to suit different borrower needs and project types. There are three main ways interest can be handled:

Rolled-Up Interest: The most common option. You make no monthly payments—interest is added to the loan each month and repaid in full at the end. This is ideal for investors refurbishing or flipping a property with no income during the term. Lenders will want to see a clear exit strategy to ensure the full balance can be repaid.

Serviced Interest: You pay the interest monthly, like a traditional mortgage. This reduces the total cost of borrowing and keeps the loan balance stable. It’s typically used when there’s rental income or other available cash flow, and lenders may carry out affordability checks to confirm you can meet the payments.

Retained Interest: The lender retains all interest upfront for the agreed term and deducts it from the loan. You don’t make monthly payments, and the total interest is settled from the outset. This works well for short-term deals with strong equity but reduces the net funds released to you.

The best option depends on your cash flow, the nature of your project, and your planned exit (e.g. sale or refinance). Most bridging lenders offer all three, but your eligibility will depend on factors like experience, income, credit profile, and property value.

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Yes, some banks still offer bridging loans, but they are often limited in scope, slower to arrange, and more conservative with lending criteria. Traditional high street banks tend to prefer lower-risk, longer-term lending—so bridging finance is more commonly provided by specialist lenders and private bridging loan providers who can move quickly and offer more flexible terms.

If you’re looking for fast funding, higher loan-to-value options, or need to finance properties that don’t meet standard lending criteria, you’re more likely to find competitive Bridge to Let products and short-term solutions through specialist bridging lenders rather than mainstream banks.

Working with a broker gives you access to the full market, including both banks and niche Bridge to Let mortgage lenders, ensuring you get the most suitable deal for your project and exit strategy.

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Bridging loans can be approved very quickly — often within 24 to 48 hours, with funds released in as little as 5 to 10 working days, depending on the complexity of the case.

Initial approval (also known as an agreement in principle) is usually fast because bridging lenders focus more on the property value, available equity, and exit strategy, rather than lengthy income checks or affordability assessments.

The overall timescale depends on:

• How quickly you provide required documents (ID, proof of funds, etc.)
• Valuation turnaround — some lenders use desktop or drive-by valuations for speed
• Solicitor readiness — using a solicitor experienced in bridging can significantly speed things up
• Whether it’s a straightforward purchase or refinance

If you’re buying at auction or working to a tight deadline, many specialist lenders offer fast-track bridging with streamlined underwriting and legal processes to meet 7–14 day completions.

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Interest on a bridging loan typically ranges from 0.5% to 1.1% per month, depending on the lender, the property, loan-to-value (LTV), and your experience as a borrower.

Rates are quoted monthly because bridging loans are short-term—usually lasting 6 to 18 months. While 0.5% per month is available for lower-risk, low-LTV deals with strong borrowers, rates around 0.8% to 1.1% are more common for higher LTVs, complex properties, or where the exit strategy is less straightforward.

Most bridging loans use rolled-up or retained interest, meaning you won’t make monthly payments—instead, interest accrues and is paid in full when the loan is repaid. This can reduce short-term cash flow pressure but increases the total repayable amount.

To get an accurate figure, it’s important to consider not just the monthly rate but also arrangement fees, valuation costs, and any exit fees.

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