Phone link
Phone link

Live chat

What is a Bridging Loan?

A bridging loan, or bridging finance, is a type of alternative lending – a financial agreement that is specifically designed for short-term funding when cash is unavailable.

Bridging loans are a practical option for asset-rich borrowers without readily available cash-flow, a bridging loan makes it possible to borrow capital quickly as it is not income based. It is backed by security on another property (or land) by way of a first or second charge, in the same way as a mortgage.

Often, the property used for security is the one being sold or bought. However, bridging finance solutions can sometimes be secured against a different property within a portfolio, for example a buy to let property or holiday home.

A good example of a client in need of a bridging loan is a new property developer requiring financial help when they have not yet received the funds from their previous sale. Bridging loans can, quite literally, bridge the financial gap between the properties before cash-flow resumes.

Capital made available through bridging finance is often flexible and accessible quickly. However, there are some considerations which you should be aware of.

Bridging loans are often determined by your ‘exit strategy’ or the way in which you intend to pay back the loan. If you have secured the loan against another property, you may risk losing it if you are unable to repay the loan within the agreed contract term.

Another risk for borrowers is if they have secured a bridging loan but are unable to complete the sale because their chain breaks down. In this situation, the client may risk having their property repossessed by the lender.

However, contacting an experienced specialist bridging finance broker may help you weigh up the most suitable options for your situation. While a bridging loan may have a high-interest rate, our team of qualified commercial mortgage and bridging finance brokers will work hard to find the most suitable solution for your circumstance.

Keen to see bridging finance in action? Take a look at how we helped secure a bridging loan for our client with a personal need.

Our friendly team of expert brokers are on hand to answer any questions you may have about bridging loans and finance. Call us on 020 7220 5100 or contact us online today.



  • What is the difference between a bridging loan and a standard loan?

    With a standard loan, the interest rate may be lower but they do not offer the flexibility and speed of a bridging loan.

    Typically, bridging finance solutions are a short-term loan with a higher interest rate. This is because large funds can be made available quickly to borrowers. The loan can be repaid immediately or up to 24 months later, and often have no fees for exiting your agreed term early so long as the loan has been fully repaid.

  • What types of bridging loans are available?

    Depending on your financial situation, there are different types of bridging finance solutions available. The main two being a regulated bridge and a non-regulated bridge loan.

  • What is a regulated bridging loan?
    • Only suitable when the property is not intended for business purposes, for example a borrower or family who are living or will live in the property
    • Typically limited by regulatory conditions
    • An exit plan is required, often it’s the sale of the security (or another) asset or provable refinance
    • There are a limited number of lenders offering regulated bridging loans.
  • What is a non-regulated bridging loan?
    • Non-regulated bridges offer more choice than the regulated option
    • There are servicing or non-servicing options available
    • Typically, lenders offer loans on a gross loan basis and deduct the interest to be paid over the term of the loan
    • Borrowers should look closely at the type of interest calculation, as often lenders will apply interest on to the interest borrowed
  • Who can get bridging finance?

    At Coreco Commercial we’ve been approached by a number of clients who are looking for bridging finance solutions. They include:

    • Homebuyers
    • Homebuyers in a complex chain
    • Residential and commercial property owners avoiding repossession
    • Commercial property developers
    • Landlords
    • Auction buyers
    • Property buyers with undervalued transactions
    • Purchasers with unusual property types
    • Clients with uninhabitable property or structural complexities
    • Land buyers with or without planning
CorecoImportant Information

The important bit

Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured upon it.

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.

A percentage of the mortgage amount may be charged depending on individual circumstances. A typical fee is 1%.

Coreco Commercial is a trading style of Coreco Specialist Finance. Coreco Specialist Finance. Registered Office: 117-119 Houndsditch, London EC3A 7BT. Registered in England Number: 06851546

Coreco Specialist Finance Limited is authorised and regulated by the Financial Conduct Authority.

Some types of finance offered by Coreco Commercial are not regulated. Please contact us for more details.

Coreco Commercial advisers are experienced mortgage advisers but we are not tax advisers. Please seek independent tax advice if required before you decide to proceed.

Overlay image


We know that all our clients are unique, and therefore the finance you require needs a different approach. We pride ourselves on providing a client focussed journey built around your needs and goals.

Overlay image
Overlay image


Our team always expresses their professionalism through their authenticity, high level of work ethic, and can-do attitude. We always find the best way for our clients to succeed.

Overlay image
Overlay image


Our progressive and forward-thinking outlook allows us to guarantee an exceptional level of innovative advice and service, ensuring an effortless, client-centric journey in the ever-changing financial world.

Overlay image

Want to talk to us?

Fill out the details below to start a conversation with one of the team.

Thank you for your submission


    Advice you can trust