Residential Bridging Loan

A "Residential Bridging Loan" is fast, short-term finance secured against residential property.

Residential bridging loans are suitable for buying and refinancing a residential property (in any condition) or cashing out equity to bridge an urgent short-term financial gap.

When you're looking to use a residential bridge loan to finance buying a new property or an unmortgageable property, one with property with a short-lease or complete an auction purchase, fund property refurbishment or conversion, extend or develop a property, fix a broken property chain, purchase a BTL (buy-to-let) investment, rebridge an existing loan, or need to cash out equity from a property urgently, we'll help you get the best rate bridging loan on the right terms. 
No borrowing scenario is too challenging or company structure too complex - we're ready to help.

Our residential bridging loans are available to individuals, legally incorporated entities and company structures, including businesses, developers, investors and speculators. They range from £26k to £250m, have a 1-36-month term and can be accessed in as little as 3 working days.

Our Residential Bridging Loan service

  • Market-leading property bridging loans from £26,000 to £250m
  • Monthly interest rates from 0.44% pm
    (Lower rates for £700,000+ loans or less than 50% LTV)
  • LTVs up to 80% (up to 100% finance if additional collateral is available)
  • Automated valuation options and dual legal representation
  • No monthly payments with interest rolled-up options 
  • Terms up to 36 months

Get a quote

Residential bridging loans are available on properties in England, Scotland, Wales, Northern Ireland & Europe.

We provide a fast, reliable service to help you get the residential bridging finance you need at the best available rates. We raise finance for all types of credit history, including non-status and bad credit, and don't perform automated credit checks, so there's no footprint from enquiring.

Our extensive network of the UK's quickest lenders, including specialist family offices, private investors, and private equity, means we can source the bridging loan you require.

up to £300k loans in 3 days
up to £750k loans in 7 days 
up to £250m from 14 days

Where your timeline is critical and short, we're confident we can secure your bridging loan - fast. Get your best no-obligation quote today.

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Residential Bridging Loan Lending Criteria

Loan to value (LTV) Up to 80% maximum 
Loan term 1 to 36 months
Loan amount £26,000 up to £250m
Interest options Rolled-up, retained or serviced
Interest rates From 0.44%
Decision Instant decision in principle
Completion Up to £300k in 3 days
Up to £750k in 7 days
Up to £250m from 2 weeks
Early repayment fees None
Availability Secured on assets in UK & Europe
Individuals, Companies, SPVs
No credit & adverse credit considered
Exit strategy Sale or refinance

Quick Enquiry

Use the quick enquiry below to receive your
free no obligation quote for a residential bridging loan.

Residential Bridging Loan for investment and refurbishment properties

Our 2024 guide to Residential Bridging Loans

Residential bridging loans provide a short-term financing option for individuals who need immediate access to funds to purchase or refinance a property before arranging longer-term finance or the sale of an asset.

A residential bridging loan is a type of bridging loan primarily used to fund residential investment properties or bridge the gap during property transactions. These loans are categorised into regulated and unregulated types, with the former aimed at properties intended as primary residences and the latter for investment properties. Common uses include buying property, refurbishing, refinancing, or cashing out equity. The loan terms, interest rates, and loan-to-value ratios vary, often influenced by the borrower's creditworthiness and the property's condition and location. While residential bridging loans provide rapid access to funds and flexibility in terms, they come with higher costs and risks, requiring a solid exit strategy to mitigate potential financial issues.

This guide will explain residential bridging loans, their usage, loan terms and criteria, eligibility requirements, property types that can be used as collateral, and their advantages and disadvantages.

What is a Residential Bridging Loan?

A residential bridging loan is short-term property finance used to either fund a residential investment property that won't be your or your close family's principal residence (unregulated residential bridging loan) or to fund a property purchase which will be your home (regulated bridging loan).

What is a residential bridging loan definition

What can a Residential Bridging Loan be used for?

A residential bridge loan has 4 main uses.

  1. Buying a residential property.
  2. Residential property refurbishment or renovation.
  3. Refinancing a residential property.
  4. Cashing out equity from a residential property.

The 2 types of residential bridging loans are unregulated and regulated.

An unregulated bridging loan facilitates the acquisition of residential investment properties suitable for various scenarios such as auction purchases, buy-to-let properties, holiday lets, houses in multiple occupation (HMOs), property flips, short-lease properties, and non-standard construction properties. These loans cater to situations where traditional financing is impractical, offering quick funding without stringent credit checks and using the property as collateral.

Conversely, regulated bridging loans are aimed at personal home purchases, addressing issues like mortgage delays and fixing broken property chains by providing a temporary financial bridge.

Additionally, residential bridging loans can support property refurbishments, renovations, conversions, refinancing, and equity cash-outs, offering flexible solutions for property investors to manage timing gaps in their funding needs or to enhance property value.

Unregulated bridging loan for buying a residential property

An unregulated bridging loan is used to finance the purchase of a residential investment property. 7 examples of properties purchased with an unregulated bridge loan are shown below.

Auction purchases

An auction purchase is one where a property is bought at auction and must be completed within 28 days of the hammer falling. Residential bridging loans, sometimes called "auction finance", allow you to complete your auction purchase quickly (3 days to 3 weeks).

Buy-to-let (BTL)

A buy-to-let property purchase is one where a property has a single tenancy agreement with one tenant or 'household'. Residential bridging loans allow you to buy BTLs, typically up to 80% of the property's value, for up to 36 months.

Holiday Lets

A holiday let property purchase is one where a property is let for holiday purposes only. Like BTL, residential bridge loans finance buying a holiday let, typically up to 80% of the property's value. 

House in multiple occupation (HMO) 

A house in multiple occupation (HMO) purchase is one where a property purchased will be rented out by at least 3 people who are not from 1 'household' (for example, a family) but share facilities like the bathroom and kitchen. It's sometimes called a 'house share'. Residential bridge loans can finance both the purchase and any light refurbishments of an HMO property.


A property flip describes a property purchased by an investor who refurbishes and sells it for profit. A residential bridging loan is a non-status loan, which means approval for the loan doesn't rely on your creditworthiness but on the property being used as collateral.


A leasehold property with a short lease (less than 80 years) is unmortgageable with a traditional mortgage provider, reducing potential buyers to cash buyers. However, a residential bridging loan lender would accept such a property as eligible collateral.

Non-standard construction

Residential bridge loans allow you to purchase a property of non-standard construction. Unlike traditional mortgage providers, who deem non-standard construction properties "unmortgageable," a bridging loan lender will accept such properties as eligible collateral.

Regulated bridging loan for buying residential property

A regulated bridging loan is used to finance a property purchase, which will be your home. 2 examples of properties purchased with a regulated bridge loan are shown below.

Mortgage delays

A regulated bridging loan is a fast alternative to a mortgage and acts as a temporary mortgage to bridge the gap between not having a mortgage and getting a mortgage. It's sometimes called mortgage delay finance. A mortgage delay affects your ability to access the finance to purchase a property. It can happen at any stage of the mortgage process, such as a delay in receiving a mortgage offer or where it has been received but insufficient time to obtain the funds. It can cause you to lose the home you want to purchase (mortgage delays cause 40% of purchases to fall through). 

Fixing a broken property chain

Regulated residential bridge loans that allow you to buy your new home before selling your old home are sometimes referred to as "property chain break finance". When your buyer has pulled out of purchasing your existing property, yet you want to go ahead and buy a new property, a regulated residential bridging loan can be used to 'fix the chain'. 

Bridging loan for residential property refurbishment, renovation or conversion

A residential bridging loan can finance refurbishment, renovation or conversion. Refurbishment finance (property refurbishment loan) describes funding light property refurbishment, such as fitting a new bathroom or kitchen or interior decoration. Renovation finance describes funding significant structural property works, such as an extension, loft conversion, basement dig, or rooftop development (airspace development). Financing property conversion describes funding changing one type of property into another, such as converting a house to flats, an HMO, or a barn into a dwelling. 

Bridging loan for refinancing a residential property

Refinancing (rebridging loan) allows you to take out a new bridge loan to repay an existing one secured on your residential property. Typical reasons to refinance a bridging loan are due to the failure of the original exit strategy, such as planned refurbishment/renovation work taking longer and going beyond the terms of the loan.

Bridging loan for cashing out equity from a residential property

A residential bridge loan can cash out equity from a residential property. Investors usually do so for several reasons, such as accessing working capital for another investment project, covering unforeseen expenses, or using it as a business cash flow loan.

Residential Bridging Loan Types

Typical loan terms and criteria

Residential bridging loans offer flexible borrowing options ranging from £26,000 to over £250 million, primarily determined by the equity in the collateral property and the lender's capacity. These loans generally provide up to 80% loan-to-value (LTV), possibly reaching 100% with additional security. The terms can extend to 36 months, though most loans are 12 months or less. Interest rates vary from 0.44% to 2% per month, reflecting these loans' short-term, high-risk nature. Borrowers can choose from serviced, retained, or rolled-up interest options. Exit strategies must be clearly defined, usually involving the sale or refinancing of the property. The typical terms and criteria for residential bridging loans in the UK are listed below.

How much can I borrow with a residential bridging loan?

Bridging loans typically range between £26,000 and £10 million. However, they can be much larger in value, as the only limiting factors are the equity available in the property or properties being used as collateral and the lender's lending appetite. 

Key point: We can source bridging loans up to £250 million, depending on your circumstances. 

What loan-to-value (LTV) can I get on my property?

Bridging loan lenders generally offer up to 80% of the residential property's value. However, this can vary based on the borrower's creditworthiness, property type, condition and location. Some lenders are willing to loan up to 100% of a property value but would require additional security.

What's the longest term I can get with a residential bridging loan?

Residential bridging loans usually have terms of up to 12 months (68% of loans were for less than 12 months in 2023), although longer durations of up to 36 months are available, varying from lender to lender.

What are the interest rates of a residential bridging loan?

You can expect to pay between 0.44-2% per month. Bridging loan rates are higher than traditional mortgages due to the short-term nature and perceived higher risk. Rates are typically fixed, but variable rates are available.

What are the interest options with a residential bridging loan?

Residential bridging loans have three types of interest options: serviced, retained, and rolled-up interest. You may also have a combination of these interest types.

What are the eligible residential bridging loan exit strategies?

Lenders require a clear plan for repaying the loan (exit strategy). A residential bridging loan is typically repaid by selling or refinancing a property. Most lenders will consider any alternative repayment proposal, provided it is viable.

Will I be eligible for a Residential Bridging Loan?

To be eligible for a residential bridging loan, you must be over 18, own a property and have a reliable exit strategy. 

A lender will primarily focus on the value and security of your property and the repayment method, which is your exit strategy for the loan. Bridging loans are less dependent on your credit score than mortgages and other loans.

Key point: Non-status and bad credit isn't a problem with bridging loans

While lenders may check your credit, it's less influential, allowing you to secure a non-status bridging loan or even a bridging loan with bad credit.

Who can borrow a residential bridging loan?

Residential bridge loans are available to anyone. This includes individuals, businesses and organisations.

  • Private individuals
  • Foreign nationals
  • Expats
  • Legally incorporated entities in the UK:
    • Private company limited by shares (LTD)
    • Company limited by guarantee
    • Limited liability partnership (LLP)
    • Royal charter (RC)
    • Industrial and Provident Society (IPS)
    • Community interest company
    • Unlimited company (Unltd)
    • Public limited company (PLC)
  • Non-incorporated Partnerships
  • Non-incorporated Businesses.

Can I get a residential bridging loan with bad credit?

Yes, you can get a bridging loan with bad credit or even non-status. You will need to supply the lender with your credit report, and they will consider it for your application. However, they will base their lending decision more on the value and security of your property. If you're applying for a regulated loan, the lender must also assess the loan's affordability, including your income and expenditure.

How is my property's value determined for a bridging loan?

The lender will value your property to ascertain its current worth, which is known as its market value. Property valuations determine how much the lender could achieve if your property were to be sold on the open market. This open market value is what the lender would get if you were forced to sell the asset used as collateral for the loan (foreclosure). For this reason, valuations are typically valid for 90 days (3 months) as property prices fluctuate. Any property being used as collateral will require a valuation.

Lenders can use 2 methods to assess your property's open market value.

  1. An in-person RICS-assessed valuation survey.
  2. An Automated Valuation Model (AMV), also known as a "desktop valuation".

Key point: Your property (collateral) will need to be valued.

Your lender will determine which valuation method they will use and, if an RICS-assessed valuation is required, which valuer they will use to conduct it.

What property is suitable for Residential Bridging Loans?

Any residential property type can be collateral for a residential bridging loan. Common types of property used as collateral are listed below.

  • Apartments
  • Barn Conversions
  • Bungalows
  • Coach Houses
  • Cottages
  • Converted Flats (typically converted from a former large house)
  • Flats (purpose-built blocks)
  • Houses (End of terrace, Terraced, Semi-detached and Detached)
  • Houses of non-standard construction (Pre-fabricated homes, Concrete homes, Timber homes)
  • Maisonettes (Duplex flat)
  • Mansions
  • Semi-commercial/Mixed-use (Flats above shops)
  • Rooftop Developments

What are the advantages of a Residential Bridging Loan?

The 3 main advantages of residential bridging loans are that they are fast to arrange, can be used for many different purposes and have flexible lending criteria.

Quick access to funds

Residential bridging loans provide fast access to capital, enabling borrowers to act swiftly in competitive property markets.


Residential bridging loans can be used to purchase property, refinance property or cash out equity from property, which can be used for any purpose.


These loans can be tailored to individual needs, offering various repayment options and flexible lending criteria.

What are the disadvantages of a Residential Bridging Loan?

Residential bridging loans have disadvantages and come with risks. Principally, the biggest disadvantage is that they have a higher borrowing cost than traditional mortgages. They are only intended as short-term finance, and to get a bridging loan, you'll need a viable exit strategy. 


Bridging loans have higher interest rates than traditional mortgages, which increases their overall cost. They also have a range of other fees, which compound the cost.

Short-Term Nature

These loans must be repaid quickly, typically within 36 months.

Potential Risks

The biggest risk is foreclosure on your property if you default on your loan. In these instances, you can lose your property. Bridging loans are perceived as a higher risk for lenders, so they come with higher interest rates and fees to offset those risks with rewards. You could default on your bridging loan if, at the term's end, your property equity doesn't cover the cost of repaying the loan or your exit strategy fails, such as a property sale being delayed due to unforeseen circumstances or falling through.

Limited Loan-to-Value (LTV) Ratio

Bridging loans typically have lower loan-to-value ratios than traditional mortgages, requiring a larger deposit or additional collateral. The maximum bridging loan is typically 80%LTV, whereas you can normally get a 95%LTV mortgage.  

Final thoughts

Residential bridging loans provide a versatile and fast financing solution for many property-related scenarios, including purchasing, refurbishing, or refinancing residential properties. These loans cater to regulated and unregulated markets, offering homeownership and investment property finance. Although bridging loans offer quick capital access and flexible terms, they come with higher costs and risks, necessitating a clear exit strategy to ensure financial safety and success.

Contact us for a no-obligation quote on your residential bridge loan

We're financial experts who arrange short-term residential bridging loans for property owners, securing you the best rates and terms from over 200 UK bridging loan lenders, including private equity firms, investors and family offices.

Get expert assistance today. We're here to answer any questions about residential bridging loans.

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Call our friendly team on 01202 612934. We're ready to help.

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