Bridging loans for UK landlords and property investors
When a mortgage is too slow or the property isn't mortgageable yet, a bridge fills the gap. Here's how bridging works, what it typically costs, and how to get indicative terms on your deal.
Have a deal now? Loans from £200,000 to £2 million, for purchase or refinance, including light development.
Get instant indicative termsWhat is a bridging loan?
A bridging loan is short-term finance secured on property, normally for 1 to 24 months. It's designed to be repaid in one go, by selling the property or refinancing onto a long-term mortgage. That repayment route is called the exit.
When investors use bridging
- Auction purchases: completing within the usual 28-day deadline.
- Unmortgageable property: no kitchen or bathroom, a short lease, or structural work needed.
- Refurbishment: buy, improve, then refinance at the higher value.
- Chain breaks: buying before a sale completes.
- Conversions and light development: such as a house to HMO, flats, or permitted development.
- Capital raising: releasing equity quickly for another purchase.
Typical bridging costs
| Cost | Typical range |
|---|---|
| Interest rate | 0.6%–1.2% a month |
| Arrangement fee | 1%–2% of the loan |
| Exit fee | None to 1% |
| Maximum loan to value | 70%–75% gross |
| Term | 1–24 months |
These are indicative market ranges, not an offer. Your rate depends on the loan to value, the property, the works and the strength of your exit. Valuation and legal fees are on top.
Retained, rolled-up or serviced interest
Most bridges retain the interest: the lender deducts it for the whole term from the loan at the start, so nothing is due monthly. Rolled-up interest is added each month and paid at the end. Serviced interest is paid monthly, which keeps the gross loan smaller.
What lenders look at
- The exit: is a sale or refinance realistic in the time?
- The security: value, condition, location and saleability.
- Your experience, especially for heavier works.
- The borrower: individual, limited company or SPV, with directors' guarantees.
Answer a few questions and see indicative figures worked on a real lender's criteria. If it doesn't fit, we'll pass it to a regulated broker who can look elsewhere.
Check my bridging dealFrequently asked questions
What is a bridging loan?
A short-term loan secured on property, usually for 1–24 months, used to complete a purchase or refinance quickly and repaid by selling or refinancing onto a longer-term mortgage.
How much does a bridging loan cost in the UK?
Rates are quoted monthly, typically about 0.6%–1.2% a month, plus an arrangement fee of around 1–2%, valuation and legal costs, and sometimes an exit fee.
How fast can a bridging loan complete?
Straightforward cases often complete in two to four weeks, which is why bridging is used for auction purchases with 28-day deadlines.
Can I get a bridging loan through a limited company?
Yes. Most investment bridging is taken out by limited companies and SPVs, with directors giving personal guarantees.
Does DasLend lend or give advice?
No. DasLend is an introducer. We pass your enquiry to an FCA-regulated broker or lender, who handles all advice and arranging.