What Are Bridging Loans?
Bridging loans are short-term secured loans (typically 12 months) designed to “bridge” a financial gap until permanent funding is arranged or a property is sold.
Common Uses
Buying at Auction
Contracts exchange when the hammer drops, you may only have 28 days to complete!
Breaking a property chain
Bridging can be used to complete on your dream home without waiting for your sale.
Refurbishing
You can use bridging to fund renovations before refinancing to a standard mortgage
Unmortgageable Property
Use bridging to secure the property at a good price then refurbish and remortgage.
Time sensitive buying
Quick property purchases when speed is critical
Business support
Use the equity in your home to support business growth or cashflow.
How Bridging Loans Work
Speed
Unlike standard mortgages (6-12 weeks), bridging loans can complete in 7-14 days when needed.
Loan-to-Value
Most bridging lenders offer up to 75% LTV, though some specialist lenders go higher for strong cases.
Fees
Expect arrangement fees (1-2% of loan), valuation fees, and legal fees. We'll give you a complete cost breakdown upfront.
Cost
Interest rates are higher than mortgages (typically 0.5%-1.5% per month) but you're paying for flexibility and speed, not long-term borrowing.
Exit Strategy:
Every bridging loan needs a clear exit plan—how you'll repay it. Common exits include:
- Sale of your current property
- Refinancing to a standard mortgage once renovations complete
- Sale of the property you’ve just purchased or developed
- Funds from another source (business sale, inheritance, etc.)
When You Need Bridging Finance
Auction Purchase
You’ve found a property at auction selling below market value. Auction rules require exchange on the day and completion, often, within 28 days. A bridging loan gives you the funds immediately.
Chain Break
You’ve found your perfect home but your buyer has pulled out. Rather than lose your dream property, a bridging loan lets you proceed. You repay it when your property eventually sells.
Renovation Project
You want to buy a run-down property, renovate it, then remortgage onto a standard mortgage based on the improved value. Bridging finance covers the purchase and renovation costs.
Delayed Sale
Your property sale has fallen through but you’ve already committed to buying your next home. Bridging keeps your purchase on track.
Speed to Market
A unique opportunity requires immediate funds. Bridging finance lets you move at speed while traditional financing catches up.
The Business Opportunity
A business opportunity (bankrupt stock, machinery sell off, ideal property) presents itself at the wrong time! Will you miss it or seize the day?
Why Use Acorn.mortgage for Bridging Finance?
Whole-of-market access
We work with 50+ bridging lenders, from high-street names to specialist funders.
Complex cases welcome
Adverse credit, limited documentation, unusual properties—we find lenders who say yes.
Clear exit planning
We ensure your exit strategy is realistic and acceptable to lenders before you proceed.
Fast processing
Our relationships with lenders mean quicker decisions and faster fund releases.
Transparent costs
No hidden surprises. We provide full cost breakdowns before you commit.
Bridging Loan FAQs
How quickly can I get bridging finance?
With all documentation ready, we can arrange funds in 7-14 days. Some lenders offer 72-hour completions for urgent cases.
What's the typical interest rate?
Monthly rates range from 0.5% to 1.5% depending on loan size, LTV, and your circumstances. We’ll find the most competitive rate for your situation.
Can I get bridging finance if I'm self-employed?
Yes. Bridging lenders focus on property value and exit strategy rather than detailed income assessment.
Do I need to make monthly payments?
You can choose “serviced” bridging (pay interest monthly) or “retained” bridging (interest rolls up and is paid at the end). Retained is more expensive but improves short-term cash flow.
What if my property doesn't sell in time?
Most bridging loans can be extended, though extension fees apply. We always build buffer time into loan terms. We’ll be in touch with you to make sure you’re on track.
Is my home at risk?
Bridging loans are secured against property. If you can’t repay when the term ends, the lender can force a sale.
That’s why exit planning is critical—and why we spend time ensuring your exit is realistic.