What is a bridging loan?
A bridging loan is a loan secured on property for a short, fixed term, usually counted in months, which is repaid in a single sum at the end from a source agreed at the start: the sale of the property, the sale of another property, or a refinance on to a longer-term mortgage. It bridges the gap between a payment that has to be made now and money that arrives later. The lender’s decision rests on the property and the exit before it rests on the borrower’s income.
The name describes the job, not a single product: an auction purchase completed inside the contract period, a property bought before another is sold, a building refurbished before it can be mortgaged, a company raising money against premises it owns for a short time. We have access to a range of UK commercial finance lenders through our principal, White Rose Finance Group Limited. Each lender publishes its own maximum loan-to-value, term and property types and makes its own decision.
The four things that define it
Security: a first or second legal charge over property, registered at HM Land Registry and, for a company borrower, at Companies House within 21 days. Term: fixed and short, with the whole balance due on the last day. Repayment: one sum from a defined exit, not monthly instalments of capital. Interest: charged monthly, and either retained from the advance, rolled up and paid at the end, or serviced month by month, which the borrower chooses with the lender. Take any one away and it is a different product.
What a bridging loan is for
Buying at auction, where the contract fixes completion commonly 28 days after the hammer and a mortgage cannot be arranged in time. Buying a property that a mortgage lender will not yet lend on, because it has no kitchen, no bathroom, or needs structural work, and selling or refinancing it once it does. Breaking a chain, where a purchase has to complete before a sale. Raising money against a property a company owns for a short period, for example to complete an acquisition before a longer facility is in place. And re-bridging, where an existing bridge reaches the end of its term before the exit.
What it costs, as a structure
A monthly interest rate rather than an annual one, because the term is in months. An arrangement fee, usually a percentage of the loan. A valuation fee, payable before the lender instructs its surveyor. The lender’s legal fees and the borrower’s own. Sometimes an exit fee on repayment, and usually a minimum interest period, so that a loan repaid in the second month still pays for the minimum. Because the fees and any retained interest come off the advance, the sum that reaches the borrower on completion is smaller than the loan, and the net day-one figure is the one to plan on. Each lender publishes its own rate, fees and terms; we set out what each provides so you can compare them, and no rate appears on this page.
What a bridging loan is not
It is not a mortgage: a mortgage runs for years and is repaid in instalments; a bridge runs for months and is repaid in one sum. It is not an overdraft or a revolving facility: once repaid it cannot be drawn again. It is not unsecured: there is always a charge over property. And through CapExpand it is not regulated lending: a bridge secured on a property the borrower or a family member lives in is a regulated mortgage contract, which we do not arrange. We arrange bridging for limited companies and LLPs on commercial property and on residential property held as an investment.
For property-secured lending we work with UK limited companies and LLPs only, for business and commercial purposes. Enquiring does not affect your credit score. If you apply to a lender, it runs its own credit search, which may be recorded on your file.
Where to read next
The bridging finance page sets out the product in full, open and closed bridges, first and second charges and what lenders publish. The mechanics answer explains retained, rolled-up and serviced interest with the arithmetic. The steps answer walks through a case from the exit to completion. The loan to value answer works the ratio every bridging lender tests.
Frequently asked questions
How long is a bridging loan for?
A fixed term counted in months, set against the exit, with the whole balance due on the last day. Each lender publishes its own minimum and maximum term.
Is a bridging loan the same as a short-term mortgage?
No. A mortgage is repaid in instalments over years and is underwritten on income. A bridge is repaid in one sum from a defined exit and is underwritten on the property and the exit.
Do I make monthly payments on a bridging loan?
Only if the interest is serviced. Where it is retained or rolled up, nothing is paid during the term and the interest is settled with the capital at the end. The borrower chooses with the lender, and the choice changes the net advance.
Can a limited company get a bridging loan?
Yes, and through CapExpand the borrower is a limited company or an LLP. The lender takes a charge over the property and usually a personal guarantee from the directors.
Is bridging regulated?
CapExpand Ltd (FRN 1060885) is a credit broker and an Appointed Representative of White Rose Finance Group Limited (FRN 630772), which is directly authorised and regulated by the Financial Conduct Authority. We are a broker, not a lender. We work with UK limited companies and LLPs only, for business and commercial purposes. If you have a complaint, our complaints page explains how it is handled. A bridging loan secured on a property the borrower or a family member lives in is a regulated mortgage contract, which we do not arrange.
How is CapExpand paid?
We will receive commission from lenders. On some cases we also charge a fee, which we set out in writing and agree with you before you proceed.
More funding questions answered
- What is development finance?A short-term facility that funds a site and the build on it, drawn in stages against certified work and repaid from the sale or refinance of the finished scheme.
- What documents do I need for a business loan?What lenders ask for by product, why some skip the accounts, and what to have ready on day one.
- What counts as bad credit for a business?CCJs, defaults, late payments and thin files, and how long each stays on record.
- Invoice finance with bad creditWhy lenders look at your customers' credit rather than yours.
- Do I need a business bank account for funding?Whose name the account has to be in, and why Open Banking comes up.
- Do I need to be a homeowner to get a business loan?No. Each lender sets its own view of home ownership, and which products care least.
A bridge with a defined exit
The property, the amount, the term and how it repays are enough for us to check the case against lenders’ published criteria before anything is sent anywhere.
Sources
Checked 26 October 2026. This page defines the product; each lender publishes its own loan-to-value, term, rate and fees, and nothing on this page is a quote.
Important information
Think carefully before borrowing. Property or other assets offered as security may be at risk if you cannot keep up repayments.
CapExpand Ltd (FRN 1060885) is a credit broker and an Appointed Representative of White Rose Finance Group Limited (FRN 630772), which is directly authorised and regulated by the Financial Conduct Authority. We are a broker, not a lender. We work with UK limited companies and LLPs only, for business and commercial purposes. We do not provide financial advice.