Typical Terms
Indicative ranges — actual terms depend on individual project assessment.
What is Bridging Finance?
Bridging finance is a short-term loan designed to "bridge" a funding gap — providing fast access to capital when speed is essential. Bridging loans can often complete within 7–14 days, making them suitable for time-sensitive transactions such as auction purchases, chain breaks, and opportunities where a standard mortgage timeline would result in losing the deal.
In Brent, bridging finance is commonly used by developers acquiring sites before arranging longer-term development finance, investors purchasing at auction, and property professionals needing to act quickly on off-market opportunities across areas from Wembley to Queens Park.
Common Use Cases
Auction Purchases
Complete within the 28-day auction deadline. Bridging lenders are experienced with auction timelines and can provide certainty of completion.
Chain Breaks
Secure your next property purchase without waiting for your existing property to sell. Repay the bridge when the sale completes.
Light to Medium Refurbishment
Acquire a property and fund refurbishment works under a single facility, with a retained element for the works budget.
Planning Gain
Purchase a property, secure planning permission to increase its value, then either sell or refinance onto development finance.
Regulated Bridging
For residential owner-occupiers who need short-term funding. FCA-regulated products with consumer protections.
Commercial Acquisitions
Fast completion on commercial property purchases where traditional commercial mortgage timescales are too slow.
Regulated vs Unregulated Bridging
An important distinction in bridging finance is whether the loan is regulated or unregulated:
Applies when the borrower or a close family member intends to occupy the property. Governed by FCA regulations with additional consumer protections, cooling-off periods, and disclosure requirements. Typically used for residential purchases or where the borrower is living in the property during works.
Applies to investment or development properties where no one connected to the borrower will live in the property. More flexible terms and faster processing as fewer regulatory requirements apply. This is the most common type for property developers and investors.
Exit Strategies
Every bridging loan requires a clear, credible exit strategy — the plan for repaying the bridge. Lenders assess the exit strategy as a key component of their risk assessment. Common exit strategies include:
- Sale of the bridged property on the open market
- Refinance onto a term mortgage or buy-to-let mortgage
- Drawdown of development finance facility
- Sale of another asset (property, business, or investment)
- Receipt of confirmed funds (inheritance, business disposal, etc.)
Suitable Project Types
Common scenarios where bridging finance is used in Brent.
Example Scenarios
Illustrative examples of how similar facilities could be structured — not completed transactions.
Auction Purchase & Refurbishment, Neasden
Premium Refurbishment, Queens Park
Frequently Asked Questions
Common questions about bridging finance.
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