Regulated bridging loan
£1.3M bridging loan to support a significant upsize in Leeds
£1.3m regulated bridge to help a Leeds family secure a significantly larger home before selling their existing property — funded in under 3 weeks.
Bridging Loans
Fast, flexible UK bridging finance.
Regulated and unregulated bridging loans secured against UK residential, commercial and investment property. Drawdown in weeks — from an award-winning independent brokerage.
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Last updated Reviewed by our Clifton International finance team.
In short
How do bridging loans work in the UK?
A UK bridging loan is short-term lending secured on property, typically up to 75% loan-to-value at around 0.55%–0.95% per month for three to twenty-four months. Funds can be drawn in one to three weeks and are repaid by a sale or a refinance onto term debt.
- Underwriting is led by the security and the exit, not by monthly income.
- Interest can be retained or rolled up, so there is no monthly payment.
- Used for auctions, chain breaks, refurbishment and time-critical purchases.
- First and second charges are both available on residential and commercial assets.
At a glance
Key facts
Figures reviewed:
- Rates
- From 0.53% per month
- Loan-to-value
- Up to 75%
- Loan size
- £100k – £25m+
- Term
- 1 – 24 months
- Interest
- Rolled / retained / serviced
- Speed
- From 7 days
- Typical set-up costs
- 1.5% – 2.5% of loan (arrangement, valuation, legals)Excludes stamp duty; non-resident surcharges may apply.
- Adviser response time
- Within one working day
Indicative figures for guidance only, correct as at July 2026. Rates, costs and timelines vary by lender, borrower profile, asset and jurisdiction, and are not an offer of finance. How we derive these figures.
Methodology and assumptions
- Figures are compiled by Clifton International specialists from live lender term sheets, indicative quotes and completed transactions arranged over the preceding 12 months.
- Rates and costs are stated as ranges rather than a single number because pricing is set case-by-case on borrower profile, residency, asset type, location and loan-to-value.
- Timelines assume a complete document file from the outset; valuation, legal capacity and (in Spain) NIE and notary availability drive the critical path.
- Costs exclude any lender, broker or third-party fees not stated on the page, and exclude currency movement between agreement and drawdown.
- Figures are reviewed at least quarterly and re-checked against lender pricing whenever a material market change occurs.
Last reviewed . Read the full Key facts methodology, or speak to our team for a quote based on your circumstances.
At a glance
Bridging loan or term mortgage — which is right?
A bridging loan buys speed and flexibility for a short, defined period; a term mortgage is cheaper but slower and needs a mortgageable property and provable income.
| Feature | Bridging loan | Term mortgage |
|---|---|---|
| Typical pricing | 0.53% – 0.95% per month | Circa 4% – 6% per year |
| Time to drawdown | 7 days – 3 weeks | 6 – 12 weeks |
| Term | 3 – 24 months | 5 – 35 years |
| Max LTV | Up to 75% (higher with extra security) | Up to 85% – 90% |
| Income test | Exit-led; income often not stressed | Affordability and income essential |
| Unmortgageable property | Yes — no kitchen, short lease, defects | No |
| Interest payment | Rolled, retained or serviced | Monthly payment required |
| Exit | Sale or refinance within the term | Amortised or repaid at term end |
Swipe the table sideways to see all columns.
Pricing shown is indicative from-rates for prepared cases; your terms depend on true loan-to-value, security and exit.
Why clients choose us
Benefits at a glance
Speed of execution
Terms in days and drawdown in weeks for well-prepared cases.
Regulated & unregulated
Bridging for main residences, second homes, investment property and commercial assets.
Purchase, refinance, chain break
Bridge into a purchase, out of an expiring facility, or across a broken chain.
Auction finance
Facilities structured to meet the 28-day auction completion window.
Development exit
Refinance a completed development onto a bridge to allow orderly sales.
Rolled or retained interest
Preserve cashflow with interest rolled, retained or serviced monthly.
Borrower eligibility
Who we can help
- UK residents, expatriates and international borrowers
- Individuals, SPVs, LLPs and corporates
- HNW and complex-income borrowers
- Property investors and developers
Typical lending criteria
Indicative parameters
- Rates
- From 0.53% per month
- Loan-to-value
- Up to 75%
- Loan size
- £100k – £25m+
- Term
- 1 – 24 months
- Interest
- Rolled / retained / serviced
- Speed
- From 7 days
Indicative only. Actual terms depend on borrower profile, asset and lender criteria.
Market data
UK bridging market data, Q2 2026
Last updated
Reviewed and refreshed quarterly. Next update due , when Bridging Trends publishes its Q3 2026 figures.
These are completed-transaction figures for the whole contributing market in Q2 2026, not indicative quotes — useful context for what a normal bridging loan currently costs, how long it takes and how much borrowers actually draw against their security.
- Gross contributor lending
- £173.1mQ1 2026: £199.2mVolumes fell 15% quarter on quarter as geopolitical uncertainty delayed some transactions rather than cancelling them.
- Average monthly interest rate
- 0.81%Q1 2026: 0.82%Pricing stayed broadly flat despite a sharp rise in second-charge lending, which usually prices higher.
- Average completion time
- 46 daysQ1 2026: 53 daysMarket-wide average across all contributors. Well-prepared cases with clear security and exit complete considerably faster.
- Average loan-to-value
- 55%Q1 2026: 52%Still comfortably below 60%, indicating borrowers are not over-gearing against their security.
- Average term
- 12 monthsQ1 2026: 12 monthsThe 12-month term remains the market default, with the exit typically a sale or refinance onto term debt.
- Regulated bridging share
- 48%Q1 2026: 41%The largest quarterly rise since Q1 2022, driven by homeowners using bridging to prevent a chain break.
- Second-charge bridging share
- 22%Q1 2026: 9%Highest level since Q1 2021, as borrowers released equity behind existing first-charge borrowing.
- Auction finance share
- 14%Q1 2026: 11%Demand rose as buyers needed certainty of funds inside the 28-day auction completion window.
What borrowers used bridging finance for in Q2 2026
- Preventing a chain break
- 18%of all transactions (Q1 2026: 14%)
- Purchasing an investment property
- 18%of all transactions (Q1 2026: 22%)
- Auction purchase
- 14%of all transactions (Q1 2026: 11%)
- Heavy refurbishment
- 10%of all transactions (Q1 2026: 6%)
- Business cashflow injection
- 9%of all transactions (Q1 2026: 4%)
How these figures are compiled and what they mean
- Data source and collection
- The figures are taken from the quarterly Bridging Trends dataset, compiled by MT Finance. They aggregate completed bridging loan transactions submitted by a panel of UK specialist finance packagers, including Clifton Private Finance.
- What the numbers represent
- The values show market-wide averages and shares for the quarter — for example, the average monthly interest rate, average loan-to-value and the most common uses of bridging finance across all contributing transactions.
- What the numbers do not represent
- These are not indicative quotes or an offer of finance. Individual pricing, LTV, term and completion time depend on the specific security, borrower profile, lender appetite and the strength of the exit strategy.
- How to use them
- Treat the figures as context for what is typical in the UK bridging market right now. They help set expectations before you request a tailored illustration based on your own property, circumstances and timeline.
Data scope & limitations
- Timing and reporting period
- The Q2 2026 data covers completed bridging loans between and . It was published on , so it reflects the market during that quarter rather than today's live pricing.
- Sample boundaries
- The dataset aggregates transactions from a panel of UK specialist bridging finance packagers. It does not include every lender or broker in the market, and only completed loans are counted — applications, approvals or indicative terms are excluded.
- Interpreting the figures
- Averages describe the contributing market as a whole. They are useful for benchmarking, but individual cases can differ materially based on the property, borrower, loan size, LTV and exit strategy.
Source: Bridging Trends Q2 2026 data, compiled by MT Finance and published 25 August 2026. Bridging Trends aggregates completed bridging transactions from a panel of UK specialist finance packagers, including Clifton Private Finance. Market averages describe the sector as a whole and are not a quotation or an offer of finance; pricing, LTV and timescales on an individual file depend on the security, the borrower profile and the strength of the exit.
UK bridging finance by scenario
Bridging loans for every UK scenario.
Each page covers the structure, criteria, costs and typical timescales for one bridging use case — with real completed transactions.
Bridging Loan Calculator & Costs
Calculate interest, arrangement and exit fees, valuation and legals — with a fully worked £510,000 example.
View pageUK Bridging Lender Comparison
Regulated and unregulated lender panels compared — and why bridging is placed through a specialist, not shopped direct.
View pageAuction Finance
Facilities structured for the 28-day auction completion window, with pre-auction agreements in principle.
View pageChain-Break Bridging
Complete on your onward purchase when a buyer withdraws or the chain collapses.
View pageDevelopment Exit Finance
Refinance a completed scheme onto cheaper short-term debt while units sell.
View pageRegulated vs Unregulated Bridging
Which regime applies to your case, and what changes in criteria, cost and process.
View pageSecond-Charge Bridging
Raise capital behind an existing mortgage without disturbing the first charge.
View pageBridging for Expats & Non-UK Residents
UK-secured short-term finance for British expatriates, foreign nationals and offshore SPVs.
View pageRefurbishment & Light Development
Purchase-plus-works and heavy refurbishment finance with staged drawdowns.
View pageProof of delivery
UK bridging loan case studies
Real completed bridging transactions — from chain breaks and time-critical purchases to overseas-secured facilities.
Regulated bridging loan
£1.2M bridging loan on UK property to purchase a home in South Africa
£1.2m regulated bridging loan secured against two unencumbered London properties to complete a £1m Cape Town purchase and hedge currency exposure.
Regulated bridging loan
£160k bridging loan when a sale fell through to secure a Spanish property
A £160k regulated bridge secured against a Gillingham home after an onward sale collapsed, allowing the client to complete on a Valencia property and protect a 15% deposit.
Overseas bridging loan
€3M bridging loan on Ibiza residential property to fund a London development project
€3m bridging loan secured against a residential property in Ibiza to complete significant development works on a London property, after further advances against the UK asset were not available.
Regulated bridging loan
£1.2M bridging loan secured to complete dream home purchase in Oxfordshire
£1.2m chain-break bridge that saved a rural Oxfordshire purchase after the buyers' onward sale collapsed at the eleventh hour.
Regulated bridging loan
£1.05M time-critical bridging finance to secure a North London home
£1.05m time-critical regulated bridge delivered in 8 working days so professional clients could secure a competitive North London purchase.
Recent transactions
Case studies from our files
Published transactions from our own case study library — select any to read the full brief.
Leeds · Bridging
£1.3M bridging loan to support a significant upsize in Leeds
£1.3m · 65% LTV · 12-month regulated bridge
£1.3m regulated bridge to help a Leeds family secure a significantly larger home before selling their existing property — funded in under 3 weeks.
Read case study
Malaga · Bridging
£230k bridging loan secured against UK property to buy a Malaga apartment
£230k · c.25% LTV · 36 days to completion
A regulated bridging loan raised against an unencumbered Edinburgh home to secure a £230k apartment in Malaga, Spain — completed in 36 days.
Read case study
Oxfordshire · Bridging
£1.2M bridging loan secured to complete dream home purchase in Oxfordshire
£1.2m · 60% LTV · chain-break bridge
£1.2m chain-break bridge that saved a rural Oxfordshire purchase after the buyers' onward sale collapsed at the eleventh hour.
Read case study
Frequently asked
Questions from clients
What interest rates are available on UK bridging loans?
Rates typically start from 0.53% per month and range up to around 0.95% per month, depending on the LTV, asset type, borrower profile and exit strength. Residential property at lower LTV generally secures the most competitive pricing.
What LTV can I get on a UK bridging loan?
Typically up to 75% LTV on residential and up to 70% on commercial. Higher gearing is possible with additional security or a second-charge structure.
How quickly can a UK bridging loan complete?
For well-prepared cases we regularly draw down in 2–4 weeks; exceptional cases with strong security and clear exit have completed inside 7 days.
Who is eligible for UK bridging finance?
UK residents, British expatriates, foreign nationals, onshore and offshore SPVs, LLPs and corporates can all be considered. The key requirements are acceptable UK security and a clearly evidenced, credible exit.
What exit strategies do UK bridging lenders accept?
Sale of the security property, refinance onto a term mortgage (residential, BTL or commercial), sale of another asset, or a defined liquidity event with clear evidence.
Do I need to service interest monthly on a UK bridge?
No — interest can be retained upfront, rolled to the end of the term or serviced monthly, depending on cashflow preference and the lender's structure.
What's the difference between regulated and unregulated UK bridging?
Regulated bridging is secured against a property that is (or will be) the borrower's main residence and falls under FCA rules. Unregulated bridging covers investment, BTL, commercial and semi-commercial assets and offers more flexible criteria.
Can I use bridging finance to buy at auction in the UK?
Yes — auction bridging is one of the most common use cases. We structure facilities to meet the standard 28-day auction completion window, including pre-auction agreements in principle.
Can UK expats and non-UK residents access bridging finance?
Yes. Many specialist bridging lenders will consider British expatriates, foreign nationals and offshore SPVs where the security is UK property and the exit is clearly evidenced.
What is the average bridging loan interest rate and LTV in the UK right now?
According to Bridging Trends data for Q2 2026, the average monthly interest rate across contributing UK packagers was 0.81% (down from 0.82% in Q1) and the average loan-to-value was 55%. The average term was 12 months and gross contributor lending was £173.1m.
How long does a UK bridging loan take to complete on average?
Bridging Trends recorded an average completion time of 46 days in Q2 2026, seven days faster than the 53 days recorded in Q1 2026. Well-prepared cases with clean title and a clearly evidenced exit routinely complete inside 2–4 weeks, and exceptional cases in around a week.
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