Residential Bridge Loans for Property

Residential bridging finance is an established form of short-term lending, secured against property that can be used in various scenarios, such as funding purchases, providing investment, releasing equity or to support refinancing.

They are renowned for their speed and flexibility. As a result, residential bridging finance can support those situations where you need to unlock liquidity at short-notice, but you're perhaps waiting for funds to become available from the sale of something else.

One of the big benefits of residential bridging finance is the array of potential scenarios it can be used for.

In many scenarios we find applicants are needing access to short-term liquidity to fund a transaction, such as a property purchase or to fund a project such as redevelopment. In each case the requirement is short-term in nature – typically less than 36 months in duration.

Transaction scenarios might include purchasing land and building materials to start building your dream home from scratch. Or it could be to fund a property purchase at auction where funds are required at short-notice. Project scenarios might include transforming a property pending a future sale, or to convert it to a rental property from which a future income will be sourced. Often the use case is unique and often the bridging finance vehicle will need to be tailored to the lending scenario. If you’re unsure if your needs can be met then it’s always best to chat through with an expert, such as ourselves.

While many lenders will consider providing a residential bridging loan to finance nearly any kind of project, there are also some criteria you will need to meet. Above all, the loan must be affordable, and you will need to show that borrowing is responsible in terms of costs and that you are not overstretching your business financially. With an indication as to your exit strategy, i.e. how the loan will ultimately be repaid.

Perhaps the biggest advantage of residential bridging finance is the flexibility it provides. As mentioned lenders will consider lending in all sorts of scenarios to help you support different outcomes.

Lenders can also offer various amounts – smaller loans of about £100,000 or more are just as possible as more significant deals of £1 million plus. The value of the property you using as collateral, your plans and exit will influence how much you can ultimately borrow, but if your finances and exit add up, you can borrow almost any amount. But the larger the loan required typically the additional complexity for arranging the loan.

The other big advantages of this type of finance is speed. You might be surprised to learn we can work to secure initial offers for a residential bridging loan in just 24 hours. And you can usually draw down funds in a couple of weeks, although we can, and have seen deals complete in 7 days if you need funds quickly. By being upfront with us we can ensure we best meet your needs.

The amount you can borrow depends primarily on the value of the property being used as security, your financial situation, and the lender’s lending criteria. Most lenders offer up to 75% Loan-to-Value (LTV) for residential properties, although some may consider higher LTVs for experienced borrowers or particularly strong security. The exact borrowing limit is also influenced by your exit strategy, as lenders want to be confident that the loan can be repaid within the agreed-upon term. As expert brokers, we help clients maximise borrowing potential while keeping risk manageable, ensuring that the loan amount aligns with both your needs and financial safety.

Interest rates for residential bridging loans are generally higher than traditional mortgages because they are short-term and carry greater risk for lenders. Rates typically range from 0.75% to 2% per month, depending on the loan size, LTV ratio, and your financial profile. In addition to interest, borrowers should expect other costs, including arrangement fees, valuation fees, legal fees, and potentially exit fees. While these costs may be higher than those of traditional finance, the benefits of rapid access to capital and flexible repayment terms often outweigh the expense. At Global Bridging Finance, we carefully review all fees with clients upfront, ensuring transparency and helping you structure the loan in a responsible and cost-effective way.

One of the main advantages of a residential bridging loan is speed. Once your application is complete and the property security has been assessed, many loans can be approved and drawn down within 7–14 days. More complex cases, such as those involving high-value properties, multiple borrowers, or unusual circumstances, may require additional due diligence and take longer to process. Our role as brokers is to manage the process efficiently, liaising with lenders to ensure all documentation is accurate, and helping you access funds as quickly as possible.