How fast can I get a bridging loan?

Fastest funding is 5–10 working days from full application to drawdown. Pre-agreed bridging facilities can fund in 24–72 hours. Slower cases involving second properties, multiple charges or unusual property types take 10–20 working days. Always engage a specialist broker early — they pre-position the application with suitable lenders and warn of any documentation issues before submission.

What's the maximum bridging amount in London?

Up to £25 million is available from specialist lenders for prime London properties. Mainstream bridging is typically £100,000 to £5,000,000. LTV is usually capped at 70–75% of the open-market value (lower than mortgage LTV because the lender accounts for sale-shortfall risk). Some lenders offer 100% LTV with additional charge over a second property. For complex large cases, multiple lenders may syndicate.

Can I roll the interest into the loan?

Yes — most bridging loans offer interest-roll-up where interest accrues and is paid on exit alongside the principal. This means no monthly payments during the loan, useful for projects with no income. Alternative: retained interest where the loan amount is reduced upfront by the interest amount. Most common: serviced interest paid monthly. Choose based on cash-flow during the project. Roll-up is most expensive overall because interest compounds but lightest on monthly burden.

Do I need a deposit for bridging?

Yes — bridging LTV is typically capped at 70–75% of open-market value, meaning 25–30% equity is required. For a £1m purchase, the bridging loan covers £700k–£750k, you provide £250k–£300k from savings or another property. Refurbishment costs are often funded as part of the bridge facility but require evidence of build cost from a regulated contractor.

What if my exit doesn't complete on time?

Two options. First, extend the bridge — most lenders allow extension at a higher monthly rate (typically 1.2–1.5% per month) plus an extension fee of 1–2%. Second, refinance with a different lender — possible but requires the new lender's underwriting. Worst case: forced sale of the property by the lender to recover the loan. Always have at least one backup exit strategy and engage the broker if your primary exit is at risk 30+ days before the deadline.

Bridging Loan for Renovation London 2026

Should I Use a Bridging Loan for a London Renovation?

Bridging loans for London renovations cost 0.6–1.2% per month (7–14% APR) plus 1.5–3% arrangement fees in 2026. They are short-term (1–24 months) and suit projects where you need fast funding before a remortgage or sale completes. Typical use: £100k–£2m for refurbish-to-sell, refurbish-to-let or while waiting for planning. Not suitable for general home improvements — use remortgage instead.

What is a bridging loan?

A bridging loan is short-term secured borrowing typically 1–24 months in duration, used to bridge a financial gap until permanent finance is in place. Common London uses: buying a renovation property at auction (cash required within 28 days), funding a renovation while waiting for planning permission or remortgage, financing a refurbish-to-sell project, or covering the gap between selling one property and buying another. Bridging is fast (funds can be released in 5–15 working days), but expensive (0.6–1.2% per month interest, plus 1.5–3% arrangement fees, plus broker fees of 1–2% and legal fees of 0.5–1%). Total all-in cost typically 12–18% per annum equivalent.

When bridging makes sense

Three scenarios where bridging is the right tool. First, time-critical purchase — auction properties require completion in 28 days, faster than any high-street mortgage can deliver. Bridging covers the purchase, renovation funds the value uplift, and a residential mortgage or sale exits the bridge within 6–12 months. Second, refurb-to-sell developer projects — small developers (£500k–£3m projects) use bridging to fund purchase plus refurbishment, exit through sale within 6–18 months. Third, planning-pending projects — buy a property without planning consent at lower price, use bridging to hold while obtaining planning, exit through remortgage at consented value. Bridging is rarely appropriate for owner-occupier renovations where time is not critical.

When NOT to use bridging

Three scenarios where bridging is the wrong tool. First, simple home improvements — a £75,000 extension on your owner-occupier home doesn't need bridging; use remortgage or further advance at half the cost. Second, no clear exit — bridging lenders require a defined exit strategy (sale, remortgage, refinance). Without one, you'll be unable to repay and could lose the property. Third, marginal projects — if the post-completion value barely covers the loan plus interest plus fees, the project is too thin for bridging's high cost; better to wait, save more equity, or scale back the project. Bridging amplifies returns but also amplifies losses.

Bridging loan costs in 2026

For a £500,000 bridging loan over 12 months. Interest at 0.9% per month: £54,000. Arrangement fee at 2%: £10,000. Broker fee at 1%: £5,000. Legal fees: £3,500. Valuation: £1,500. Exit fee at 1%: £5,000. Total cost over 12 months: £79,000 (15.8% of the loan). Compare to a remortgage: same £500k at 5% over 12 months = £25,000 interest plus £2,500 in fees, total £27,500 (5.5% of the loan). Bridging is roughly 3x the cost of a remortgage. The premium is justified only when speed, flexibility or risk profile makes a remortgage impossible or impractical.

How to arrange bridging finance

Bridging is broker-led; do not approach lenders directly. Use a specialist bridging broker like Y3S Bridging, Octopus, KSEYE or Brightstar. The broker assesses your case, matches to suitable lenders (United Trust Bank, Together, Octane, Glenhawk are major active lenders) and negotiates terms. Application typically requires: property valuation, exit strategy proof (planning application, sale particulars, mortgage agreement in principle), bank statements, business case if developer or refurb-to-let, and personal credit profile. Decision in 5–10 working days; funds released 5–15 working days after legal completion. Always pre-arrange your exit strategy in parallel — bridging lenders frequently extend at higher rates if you can't exit on time.