Bridging finance is short-term, secured lending typically used when speed is critical and conventional mortgage timelines are too slow. In 2026, bridging loans are widely used by property investors, developers, and homebuyers in chain-break situations. Understanding how bridging works and when to use a specialist broker is essential before committing to this type of finance.

When bridging loans are used

The most common use cases are: purchasing a property at auction (typically 28-day completion requirement), breaking a property chain, funding refurbishment before refinancing onto a long-term mortgage, and short-term development finance. Bridging loans are not suitable as long-term financing solutions — they are designed for defined short periods of 1-24 months with a clear exit strategy.

Why use a specialist bridging broker

Bridging lenders have highly variable criteria, rates, and appetite for different property types and borrower profiles. A specialist broker knows which lenders are most competitive for your specific scenario and can secure indicative terms in hours rather than days. They also structure the exit strategy — typically a remortgage or property sale — to satisfy lender requirements. Find verified finance brokers on the Kaeltripton Financial Index.

Bridging loan costs — what to expect

Bridging rates are typically quoted monthly: 0.5-1.5% per month depending on LTV, property type, and exit strategy. Arrangement fees of 1-2% of the loan are common. Valuation and legal fees apply. Total costs on a six-month bridging loan at 1% per month plus 2% arrangement fee on a £500,000 loan would be approximately £38,000. These costs must be factored into any bridging transaction.

This article is for informational purposes only and does not constitute financial advice. Always verify regulatory status with official sources before making any financial decision.