%3Aquality(80)%3Afill(transparent)&w=3840&q=75)
%3Aquality(80)%3Afill(transparent)&w=3840&q=75)
Property financeLast updated: 23 Jul 2026
Bridging loans, compare top UK lenders
A bridging loan is a short term, secured loan that gives your business fast access to funds while you wait for a longer term solution, such as a property sale, refinance or investment, to complete. Funds can land in your account in as little as 72 hours, which is why bridging loans are so popular for auction purchases, broken property chains and time sensitive opportunities.
TRUSTED BY 200,000+ UK BUSINESSES
£2bn in funding offers
130+ business lenders
Regulated by the FCA
Rated Excellent on TrustPilot
%3Aquality(80)%3Afill(transparent)&w=3840&q=75)
What is a bridging loan?
A bridging loan is short term finance that lets a business borrow money quickly, usually secured against a property or other asset, to bridge the gap between a purchase and a longer term source of funds. It is designed to be temporary, so most lenders expect it to be repaid within a matter of months rather than years. Businesses typically use a bridging loan when they need to move fast, for example to complete on an auction property, secure a site before planning permission comes through, or cover a cash flow gap while waiting for a commercial mortgage or the sale of another property to complete. Because a bridging loan is short term and secured, lenders can often approve and release funds far quicker than they would for a standard commercial mortgage or business loan.
%3Aquality(80)%3Afill(transparent)&w=3840&q=75)
How do bridging loans work?
A bridging loan works by using property or another valuable asset as security, which allows the lender to release funds quickly and with less scrutiny of your trading history than an unsecured loan. In return, you agree on a clear exit route that shows exactly how you will repay the loan when the term ends. Most bridging loans run on an interest only basis, so your monthly cost covers interest and fees rather than repaying the capital. The capital is then repaid in full at the end of the term, usually through a property sale, a remortgage onto a commercial mortgage, or funds from another source such as an investment or inheritance.
Your exit strategy is the single most important part of a bridging loan application. Lenders will want to see evidence that it is realistic, whether that is a sale agreed, a mortgage offer in principle, or a signed contract for the funds you are expecting.
How much does a bridging loan cost?
Bridging loans typically cost more each month than longer term finance, because you are paying for speed and flexibility rather than a long repayment period. Your rate will mostly depend on the loan to value (LTV), whether the loan is first charge or second charge, and how strong your exit plan is.
On top of the monthly interest, most lenders charge an arrangement fee when the loan is set up, and some charge an exit fee when it is repaid. You may also need to cover valuation and legal costs for both sides.
Loan to value (LTV) | Typical monthly rate | Arrangement fee | Exit fee |
|---|---|---|---|
Up to 60% LTV | From around 0.55% to 0.75% | 1% to 2% of the loan | 0% to 1% of the loan |
60% to 70% LTV | Around 0.75% to 1.0% | 1% to 2% of the loan | 0% to 1% of the loan |
70% to 75% LTV | Around 1.0% to 1.5% | 1% to 2% of the loan | 0% to 1% of the loan |
These figures are a general guide to the UK bridging loan market and will vary between lenders and cases. Because Capitalise compares options from a panel of over 130 lenders, we can help you find a rate and fee structure that fits your business rather than settling for the first offer you receive.
Why use a bridging loan for your business?
Fast access to funds
With decisions possible within 24 to 48 hours and funds released in as little as 72 hours
Flexibility to choose a fixed or variable rate
With this flexibility, you can manage your repayments in a way that suits your business
Secured lending allows for larger loan amounts
You're able to borrow more than most unsecured business loans allow, since the loan is secured against property
%3Aquality(80)%3Afill(transparent)&w=3840&q=75)
How much can I borrow with a bridging loan?
You can typically borrow between £25,000 and £40 million with a bridging loan through Capitalise, with the amount you are offered based on the value of your security and your exit plan rather than your annual turnover alone. Most lenders will lend up to 75% of the property value, known as the loan to value or LTV.
A first charge bridging loan, where the lender has the primary claim on the property, usually comes with the most competitive rates. A second charge bridging loan sits behind an existing mortgage or loan, so it tends to carry a slightly higher rate to reflect the extra risk. Use our bridging loan calculator to estimate your repayments.
What can I use a bridging loan for?
Buying a property at auction
Purchase an unmortgageable property
Purchasing land for development
If the property chain breaks whilst trying to buy a new property
If you have a short term cashflow gap
Bridging loan vs commercial mortgage vs development finance
A bridging loan is not the only way to fund a property purchase or project, so it helps to see how it compares with the other main options available through Capitalise.
Bridging loan | |||
|---|---|---|---|
Typical term | 1 to 24 months | Up to 25 years | 12 to 24 months |
Speed to funds | As quick as 72 hours | Several weeks to months | Several weeks |
Best for | Urgent purchases, auctions, short gaps in funding | Buying or refinancing a property long term | Funding a build or heavy refurbishment project |
Repayment style | Usually interest only, capital repaid at the end | Capital and interest over the term | Usually interest only, drawn down in stages |
If your business needs long term property finance rather than a short term bridge, our property finance team can help you compare all the options side by side.
What types of bridging loan are available?
Open bridging loans
In an open bridge loan there is no fixed repayment date, only a maximum term, so you can repay whenever your funds become available within that period. This suits a business that has found a property to buy but has not yet sold an existing one.
Closed bridging loans
Closed bridging loans have a fixed repayment date so you will know exactly when the loan needs to be repaid.
Fixed rate
With a fixed rate bridging loan, your rate and monthly cost stay the same for the whole term, so your repayments are predictable.
Variable rate
with a variable rate your rate can move up or down during the term, which may suit a business comfortable with some uncertainty in exchange for a potentially lower starting rate.
First charge bridging loan
A first charge bridging loan means the lender holds the primary legal claim on the property, which typically means better rates.
Second charge bridging loan
A second charge bridging loan sits behind an existing mortgage or loan on the same property and usually carries a slightly higher rate.
%3Aquality(80)%3Afill(transparent)&w=3840&q=75)
Am I eligible for a bridging loan?
Most UK registered businesses can apply for a bridging loan, and lenders place more weight on your security and exit plan than on your trading history or credit score. You are more likely to be approved quickly if you can show a clear way to repay the loan, whether that is a property sale, a remortgage, or another confirmed source of funds.
Applying for a bridging loan with Capitalise is designed to be quick
How do I apply for a bridging loan?
%3Aquality(80)%3Afill(transparent)&w=3840&q=75)
Tell us the background
When you start your application, tell us what your business does, what you need the bridging loan for, how much deposit you have and how much you want to borrow.
%3Aquality(80)%3Afill(transparent)&w=3840&q=75)
Gather your documents
This usually includes your latest annual financial statements, details of the property you want to buy, and details of the security you are offering.
%3Aquality(80)%3Afill(transparent)&w=3840&q=75)
Send your application to multiple lenders
One of our funding specialists will help you put together your application and send it to the lenders from our panel of 130+ most likely to approve you.
Compare bridging finance lenders with Capitalise
%3Aquality(80)%3Afill(transparent)&w=3840&q=75)
%3Aquality(80)%3Afill(transparent)&w=3840&q=75)