Where to find a bridging loan
Bridging loans come from specialist lenders, not from the high-street banks you use for checking accounts. The lenders that offer them fall into three groups: dedicated bridging finance companies, commercial banks with specialist divisions, and mortgage brokers who arrange them on your behalf. Barclays, HSBC, and Lloyds do offer bridging products, but usually only through their commercial or specialist lending arms—not through the branch where you bank. Most borrowers find a bridging loan through a broker rather than by walking into a bank.
The reason is practical: bridging loans are short-term, high-risk products designed for specific situations—usually property transactions where you need cash before a sale completes or before a mortgage is approved. A retail bank branch has no infrastructure for this. A specialist lender or broker does it every day and can move fast, which is what bridging borrowers need.
Key Takeaways
- Specialist bridging finance companies like Bridging Finance, Precise Mortgages, and Shawbrook are the primary source of bridging loans, not high-street banks.
- Commercial divisions of major banks (Barclays Commercial, HSBC Commercial Banking) do offer bridging, but you must contact them directly, not your retail branch.
- Mortgage brokers can arrange bridging loans with multiple lenders and often move faster than applying directly to a bank.
- Bridging loans are short-term debt secured against property, typically lasting 3 to 12 months, and carry higher interest rates than mortgages.
- The lender will require proof of exit—how you plan to repay the loan—before they will release funds.
Specialist bridging finance companies
These lenders exist solely to provide bridging loans and understand the speed and flexibility the market demands. Examples include Bridging Finance, Precise Mortgages, Shawbrook, Pepper Money, and Kensington Mortgages. They typically lend between £25,000 and several million pounds, secured against residential or commercial property. Most can make a decision within days and fund within one to two weeks if your paperwork is complete.
Specialist lenders charge higher interest rates than mortgages—typically 0.5% to 2% per month, depending on the loan-to-value ratio, your credit history, and how certain your exit is. They also charge arrangement fees (usually 1% to 3% of the loan amount) and legal fees. Because they move fast and take on more risk, they expect you to have a clear plan to repay: a property sale in progress, a mortgage offer pending, or a refinance lined up.
You can approach a specialist lender directly through their website, but most borrowers use a broker because brokers have relationships with multiple lenders and can shop your case around to find the best rate and terms.
Commercial banking divisions of major banks
Barclays, HSBC, Lloyds, and NatWest all have commercial or specialist lending divisions that offer bridging products. These are separate from the retail branches where you hold a current account. If you approach your local branch, they will either turn you away or refer you to the commercial team.
The advantage of a bank's bridging product is that they may offer slightly lower rates if you have an existing relationship with them or a strong credit history. The disadvantage is that they are slower than specialist lenders and may have stricter lending criteria. A bank will typically take two to four weeks to make a decision, whereas a specialist can do it in days.
To access a bank's bridging product, search for "[Bank Name] Commercial Bridging" or "[Bank Name] Specialist Lending" online, or contact their commercial lending department directly. Do not expect your retail branch to handle it.
Mortgage brokers and how they work
A mortgage broker is an intermediary who has relationships with multiple bridging lenders and can present your case to several at once. They earn a commission from the lender (typically 0.5% to 1% of the loan amount), not from you, so there is no upfront cost to use one. A broker can often negotiate better rates because they bring volume to lenders.
The process is straightforward: you provide the broker with details of your property, the amount you need, your exit strategy, and your financial situation. The broker then submits your case to lenders they think will approve it. Within a few days, you will have multiple offers to compare. The broker handles the paperwork and liaises with the lender's legal team on your behalf.
Finding a broker: search for "bridging loan broker" or "bridging finance broker" online. Check that they are FCA-regulated (you can verify this on the FCA register). Ask for references from recent clients and clarify upfront whether they charge you anything (most do not, but some charge an arrangement fee on top of the lender's fee).
What lenders will ask for before they say yes
All bridging lenders—whether specialist companies, banks, or brokers—will require the same core information. They need proof of your exit: a signed contract to sell the property you are bridging on, a mortgage offer from a new lender, or a clear refinance plan. Without an exit, they will not lend, because they need to know how you will repay.
They will also order a valuation of the property being used as security, pull your credit file, and ask for proof of income and savings. If you are self-employed, expect to provide two years of accounts. If you are buying a property and using the sale of your current home as the exit, they will want to see the estate agent's valuation and the sale contract.
The entire process—from initial inquiry to funds in your account—typically takes two to four weeks with a specialist lender or broker, and four to eight weeks with a bank. If you are in a time-sensitive situation, mention this upfront; some lenders offer "fast-track" or "emergency" bridging with a slightly higher fee.
Comparing costs across lenders
Bridging loans are expensive compared to mortgages, so it is worth comparing. The total cost includes the interest rate (charged monthly), an arrangement fee (usually 1% to 3%), legal fees (typically £500 to £2,000), and a valuation fee (£300 to £1,000). Some lenders also charge an exit fee if you repay early.
A £200,000 bridging loan at 1.5% per month for six months, with a 2% arrangement fee and £1,500 in legal costs, would cost roughly £18,000 to £20,000 in total. That is expensive, but if it allows you to buy a property before your current home sells, or to bridge a gap in your mortgage approval, it may be worth it.
Use a broker to get multiple quotes. Ask each lender for a full breakdown of all fees, the interest rate, the term, and any early repayment penalties. Do not choose based on the lowest rate alone; a lender who moves faster or has more flexible exit terms may save you money overall.
When a bridging loan is not the right answer
Bridging loans are designed for short-term gaps, not long-term borrowing. If you need money for more than 12 months, a personal loan, a second mortgage, or a remortgage will be cheaper. If you do not have a clear exit—a sale in progress, a mortgage offer, or a refinance plan—most lenders will turn you down or charge a premium for the extra risk.
If you are in financial difficulty or have a poor credit history, bridging may still be available, but the rates will be higher and the lender may require a guarantor or additional security. In this case, speak to a broker who specializes in "non-standard" bridging; they have relationships with lenders who work with borrowers in tougher situations.
Frequently Asked Questions
Can I get a bridging loan from my regular bank?
Not from your retail branch. Major banks offer bridging through their commercial or specialist lending divisions, which are separate teams. You must contact them directly—search for "[Bank Name] Commercial Bridging" or ask your branch to refer you to the right department. Most borrowers find it faster to use a specialist lender or broker instead.
How long does it take to get a bridging loan?
Specialist lenders and brokers typically take 2 to 4 weeks from application to funds in your account, assuming your paperwork is complete and your exit is clear. Banks usually take 4 to 8 weeks. Some lenders offer "fast-track" bridging for an extra fee, which can reduce this to 5 to 10 days, but this is only available if your case is straightforward.
What if I do not have a buyer for my current home yet?
Most lenders will not bridge without a clear exit. However, some specialist lenders will bridge on the strength of a property valuation and a realistic sale timeline, particularly if you have equity in the property. Expect to pay a higher interest rate (1.5% to 2% per month instead of 0.5% to 1%) and to provide more detailed evidence of your sale plan. A broker can help you find lenders willing to take this risk.
Do I pay interest on a bridging loan monthly or at the end?
Most bridging loans charge interest monthly, and you pay it as you go. Some lenders offer "rolled-up" interest, where the interest is added to the loan balance and paid when you repay the full amount. Rolled-up interest is more expensive overall because you pay interest on the interest, but it can help if you are short on cash during the bridging period.
What happens if I cannot repay the bridging loan on time?
If your exit falls through—your property does not sell, your mortgage offer is withdrawn—you must tell the lender immediately. Most lenders will extend the loan for a fee (typically £500 to £2,000 per month) while you sort out a new exit plan. If you cannot repay or extend, the lender can take possession of the property and sell it to recover their money, which will damage your credit and cost you thousands in legal and sale fees.