Bridging Finance
Looking for a short-term finance solution to buy a property quickly? A bridging loan could be the answer. Whether you need to buy before selling, complete a property purchase fast, or fund an investment opportunity, bridging finance provides quick access to capital when traditional lenders can’t keep up.
At J Finance, we specialise in bridging finance for residential buyers and property investors, helping you secure the funding you need—without the delays of a traditional mortgage.
What is Bridging Finance?
A bridging loan is a short-term, secured loan designed to bridge the gap between a property purchase and a longer-term financial solution. It’s commonly used when buyers need fast funding or when traditional mortgage lenders aren’t able to move quickly enough.
🔹 Short-term loan (typically 3–12 months)
🔹 Secured against property (residential or investment)
🔹 Flexible repayment options (interest roll-up or monthly payments)
🔹 Quick approvals – often within days
Types of Bridging Finance
Bridging loans can be used for a range of property-related needs. The two main types are:
1. Residential Bridging Loans (For Homeowners & Buyers)
Need to buy a property quickly but waiting for your existing home to sell? A residential bridging loan can help.
✅ Buy Before Selling – Secure your new home before your current property sells.
✅ Broken Property Chains – Avoid losing out due to delays in a sale.
✅ Auction Purchases – Complete quickly when traditional mortgages take too long.
✅ Unmortgageable Properties – Buy a home that doesn’t meet standard lending criteria (e.g., requires renovation).
2. Bridging Loans for Property Investment
For landlords, developers, and investors, bridging finance is a powerful tool for seizing opportunities quickly.
🏠 Buy-to-Let Investment – Fund the purchase of a rental property before arranging a buy-to-let mortgage.
🏚 Refurbishment Projects – Buy and renovate properties that need work before refinancing or selling.
🔨 Property Development – Secure finance for conversions, extensions, or new builds.
🏡 HMO Conversions – Finance multi-let properties before moving to long-term investment finance.
How Does Bridging Finance Work?
1️⃣ Application & Approval – Fast decisions, often within 24-48 hours.
2️⃣ Valuation & Legal Work – Property valuation and legal checks carried out quickly.
3️⃣ Funds Released – Once approved, funds can be available in days, not weeks.
4️⃣ Exit Strategy – Repay via a remortgage, property sale, or other agreed method.
Bridging loans are interest-only, with payment options including:
✔️ Monthly Interest Payments – Pay the interest each month, keeping the loan balance stable.
✔️ Rolled-Up Interest – No monthly payments, with interest added to the loan and repaid at the end.
Why Use Bridging Finance?
✔️ Speed – Quick funding when traditional mortgages are too slow.
✔️ Flexibility – Borrow for different property types, including those needing refurbishment.
✔️ High Loan-to-Value (LTV) Options – Borrow up to 75% LTV in some cases.
✔️ No Monthly Repayments (If Rolled-Up Interest Chosen) – Reducing cash flow pressure.
✔️ More Lending Options – Suitable for those who may struggle with traditional mortgage criteria.
Example: How Bridging Finance Can Work
🏡 Residential Bridging Loan Example
You want to buy a new home for £500,000 but haven’t sold your current house yet, worth £400,000 with a £200,000 mortgage.
A bridging loan allows you to secure the new property while waiting for your sale.
Once your current home sells, you repay the bridging loan in full.
Property Investment Example
You purchase a run-down property for £200,000 at auction.
A bridging loan of £150,000 covers the majority of the purchase.
You renovate the property, increasing its value to £300,000.
You refinance onto a buy-to-let mortgage and repay the bridging loan.
Key Considerations Before Taking a Bridging Loan
⚠️ Bridging Loans Are Short-Term – Ensure you have a solid exit strategy (sale, remortgage, or another funding source).
⚠️ Interest Rates Are Higher – Because bridging loans are short-term, rates are usually higher than traditional mortgages.
⚠️ Additional Fees Apply – Lender arrangement fees, legal fees, and valuation fees should be factored in.
⚠️ Your Property is at Risk – As with any secured loan, failure to repay could lead to repossession.
Who Can Get Bridging Finance?
Bridging loans are available to:
✅ Homeowners looking to buy before selling
✅ Property investors & landlords expanding their portfolio
✅ Developers funding a renovation or conversion project
✅ Self-employed applicants who may struggle with mainstream mortgages
✅ Buyers of unusual properties that don’t qualify for a standard mortgage
Bridging finance lenders offer more flexible criteria than high-street banks, making it an attractive option for those who need fast property finance.
Frequently Asked Questions
How quickly can I get a bridging loan?
Bridging loans can be arranged in as little as 5–14 days, depending on the lender and legal process.
What’s the difference between bridging finance and a mortgage?
A mortgage is long-term finance, usually repaid over 25+ years. A bridging loan is short-term (typically 12 months) and is used for quick property transactions.
How do I repay a bridging loan?
The loan is repaid via an exit strategy, such as selling the property, refinancing onto a mortgage, or using other funds.
What are the typical interest rates for bridging finance?
Bridging loan rates vary depending on loan size, LTV, and borrower profile, but they typically range from 0.4% to 1.5% per month
Get Expert Bridging Finance Advice from J Finance
At J Finance, we help homeowners and investors secure the right bridging loan for their needs. With access to specialist lenders, we find solutions tailored to your property goals—whether you’re buying a home, investing in property, or funding a development project.
📞 Call us today for a free, no-obligation consultation.
📩 Book an appointment to discuss your bridging finance options.
Need property finance fast? Let J Finance help you secure the funding you need.
We are happy to hold meetings remotely or our advisers are based all over the UK in locations such as Berkshire, Oxfordshire, Hertfordshire, Bedfordshire, Yorkshire, Derbyshire and London.