- Who it's for
- UK Ltd companies, PLCs and LLPs needing short-term finance secured against property
- Typical amounts
- £25,000 up to £1,000,000 (larger deals need a specialist conversation)
- Typical terms
- 3 to 24 months
- Minimum turnover
- £100,000 a year to use Lending Box
- Security
- A legal charge over property, up to around 70% loan-to-value less existing charges; property is at risk if the loan isn't repaid
Indicative only. Subject to lender assessment and approval.
Who it's for
- Businesses needing to complete a property purchase quickly, ahead of a linked sale or longer-term refinance.
- Companies funding a refurbishment or light development, intending to refinance or sell once works complete.
- Businesses with a clear, realistic exit plan — a sale, refinance, or other source of funds — within the loan term.
- Property investors or trading businesses that own property and need to act on a time-limited opportunity.
How it works
- 1You tell us about the property, the amount needed, and — critically — your exit plan: how the loan will be repaid.
- 2A lender arranges a valuation and assesses the exit plan alongside the security and your ability to service any monthly interest.
- 3Legal work completes (often with solicitors acting for both parties) and funds are released, usually as a lump sum.
- 4The loan is repaid in full at the end of the term, through the sale, refinance or other exit agreed upfront — interest is often charged monthly or rolled up and paid at the end.
How bridging loans are priced
Bridging loans are usually priced as a monthly rate rather than an annual one, reflecting their short-term nature.
- Illustrative monthly rates are often around 0.95%, though this varies by lender, LTV and risk.
- Interest can be paid monthly, deducted upfront ('retained'), or rolled up and repaid with the capital at the end — each affects cash flow differently.
- An arrangement fee (commonly 1–2% of the loan) and exit fee may also apply, alongside valuation and legal costs.
Loan-to-value and the exit plan
Lenders typically lend up to around 70% of the property's value, less any existing charges, though this varies with the type of property and strength of the exit.
- A weaker or less certain exit plan (e.g. an undefined future sale) generally means a lower LTV or higher rate.
- A clear, evidenced exit — an agreed sale, or a refinance agreement in principle — strengthens the application considerably.
- Lenders will usually want a credible fallback if the primary exit doesn't go to plan.
Common uses for commercial bridging
Bridging finance tends to suit specific, time-limited scenarios rather than everyday working capital.
- Buying a property at auction, where completion deadlines are tight.
- Breaking a chain, completing a purchase before a related sale finishes.
- Funding light refurbishment before refinancing onto a standard commercial mortgage.
- Raising quick capital against an unencumbered or low-mortgage property for business use.
How a broker helps
Bridging lenders vary significantly in their appetite for different property types, locations and exit plans. As a whole of market broker, we help structure the application — particularly the exit plan — in a way that gives it the best chance with the right lender. Our service is free to your business; we're paid a commission or finder's fee by the lender if finance completes, as set out in our Broker Terms.
Eligibility
- A UK limited company, PLC or LLP (not sole traders or partnerships).
- Annual turnover of at least £100,000.
- A property to use as security with sufficient equity after existing charges.
- A clear, credible exit plan for repaying the loan within the term.
- Directors willing, in most cases, to give a personal guarantee alongside the charge.
Documents you'll need
- Details of the property: value, existing mortgage or charges, and title information.
- A clear written exit plan — sale particulars, refinance agreement in principle, or similar evidence.
- Latest filed accounts and recent bank statements.
- Planning permission or schedule of works, if the loan funds a refurbishment.
- Photo ID and proof of address for directors.
Advantages
- Can be arranged faster than a standard mortgage, which suits time-limited purchases or opportunities.
- Flexible against various property types and situations, including ones mainstream lenders might find too complex.
- Interest can sometimes be rolled up and paid at the end, easing monthly cash flow during the bridge.
- Useful for unlocking equity in one property quickly, before refinancing onto cheaper, longer-term finance.
Things to weigh up
- The property used as security is at risk if the loan is not repaid or refinanced at the end of the term.
- Monthly rates are higher than standard mortgage rates, reflecting the short-term, higher-risk nature of the lending.
- If the exit plan falls through — a sale delays or a refinance isn't approved — the business can face serious difficulty repaying.
- Valuation, legal and arrangement fees add meaningfully to the overall cost.
Worked example (illustrative)
A trading company wants to buy a small commercial unit at auction for £300,000, with 28 days to complete, while it arranges a standard commercial mortgage in parallel.
A bridging lender offers £210,000 (70% LTV) against the property's £300,000 value, with the company funding the £90,000 deposit itself, and the exit being the commercial mortgage expected to complete within 6 months.
Using an illustrative monthly rate of 0.95%, interest on £210,000 over 6 months (rolled up) would be roughly £12,000, repaid when the mortgage completes, alongside arrangement, valuation and legal fees. The real cost depends entirely on the lender's assessment.
Property & secured calculator
Total interest (retained)
£17,100
- Maximum available
- up to £200,000
- Amount shown
- £150,000
- Rate
- 0.95% a month
- Repay at the end
- £150,000
Maximum is up to 70% of the property value, less existing mortgages or charges. Bridging interest is usually retained (taken from the loan upfront), so there are no monthly payments.
Illustrative only. Indicative only. Subject to lender assessment and approval.
Frequently asked questions
Related guides
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Lending Box helps UK businesses access business finance, working directly with businesses and their trusted advisers. We are a credit broker and do not provide loans ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 or over, and terms and conditions apply. Guarantees and indemnities may be required. Lending Box can introduce applicants to a number of providers based on each applicant's circumstances and creditworthiness. We can also make insurance introductions. Lending Box will receive a commission or finder's fee for arranging such finance and insurance introductions. Broker Terms