Bridging Finance

What is bridging finance?

A bridging loan is similar to a mortgage and is used by individuals and businesses to purchase or raise capital secured against either a residential and/or commercial property or a land asset. Unlike a traditional commercial mortgage, execution and drawdown happens much faster.

How does bridging finance work?

  • Bridging lenders focus on property suitability as security.
  • Bridging loans often include an interest reserve facility which allows lenders to collect interest without monthly payments.
  • This means the borrower’s don’t have a monthly repayment to service, although serviced bridging loans are available.
  • Bridging lenders prioritise the exit strategy when assessing a proposition. The key question is: “How will the borrower repay the loan?”
  • Common bridging loan exits:
    – Re-mortgage with a conventional lender.
    – Sale of the property used as security.
  • Up to 80% LTV is available, depending on the
    property type

How much does it cost?

  • The costs vary depending on lender, loan amount, security type, term of the facility and the credentials of the borrower
  • Rates varying from 8%-18% per annum.
  • Pricing is linked to a lenders perceived risk of each deal, with bespoke pricing applying to each application
  • Arrangement fees vary from 1 – 3 %
  • Pricing isn’t the only important factor when it comes to Bridging Loans. Insight to the lender is vital, which is where a good broker will add value to your application.

Do I need a Broker?

The short answer is yes. There are a large number of bridging lenders across the UK and due to the complexity of the process, most of them are set up to work alongside finance brokers.

Is my business eligible for bridging finance?

  • Any individual, partnership or company may obtain a bridging loan if they are the owners or the intended purchasers of a property that is considered suitable security by a lender.
  • Any ultimate beneficial owner of a borrowing company or any individual must be at least 18 years of age.

How long can I use a bridging loan for?

  • Bridging loans can be short-term, spanning from one month to several years.
  • Quick repayment via a robust exit strategy is encouraged to save on interest and fees.
  • Many bridging lenders prefer fast repayment and don’t charge redemption fees.
  • Some offer ‘open-ended bridging loans’ with no fixed term for flexible repayment.

What if I have bad credit?

  • Bridging loans focus on property, making them accessible for those with limited borrowing options due to poor credit history.
  • Personal credit scores matter less; lender prioritises the exit strategy.
  • If a re-mortgage is the exit, proof of viable remortgage is required.
  • Lenders vary, some prefer prime borrowers, others work with those with credit issues.
  • Borrower’s track record affects interest rates and fees.
  • Most bridging lenders focus primarily on property value and a clean legal title for their security.

Click below to begin the process of applying for bridging finance

The types of finance we can offer

We can offer a wide range of funding options that include the following:

Business Loans

Let us help source the right business loans for you

Commercial Mortgages

Funding for commercial mortgages and buy-to-let purchases

Property Development

A range of development finance options catered to your specific needs

Bridging Finance

Funding for that urgent purchase or refinance when time is tight

Residential Mortgages

For individuals who wish to purchase their own home

Invoice Finance

Keep cash flow moving and get paid quicker for your products and services

Portfolio Landlord

For individuals or investors who own a portfolio of properties

Asset Finance

Sourcing the equipment you need without disrupting your cash flow

Buy-To-Let Mortgages

For individuals or investors who wish to purchase residential property to let

Multiply Finance Ltd is a member of the National Association of Commercial Finance Brokers.

Multiply Finance Ltd is a member of the Federation of Small Businesses.

Get In Touch

Our finance experts are on hand to take your call, email or respond to your message.

Multiply Finance Limited,
Censeo House,
6 St Peter's Street,
St. Albans,


Multiply Finance Limited trading as Multiply Finance is an Appointed Representative of Connect IFA Limited 441505 which is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 929261. The FCA do not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Your property may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice, the precise amount will depend upon your circumstances.

Multiply Finance Limited Registered Address: Egale 1 80 St Albans Road, Watford, Herts, England, WD17 1DL Registered in England and Wales No: 12561172

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Commission disclosure: We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.

How to make a complaint - It is our intention to provide you with a high level of customer service at all times. If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department; Connect IFA Ltd, 39 Station Lane, Hornchurch, RM12 6JL or call: 01708 676110. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.