Residential Bridging Loans

Residential bridging loans are typically used for chain breaks, auction purchases, buy-to-let investments or securing a property quickly while longer-term funding is arranged. They provide a short-term solution when timing is critical.

Funds can be released in as little as 48 hours once terms are agreed and key checks are completed. The exact timing depends on factors such as the valuation, legal work and how promptly documents are supplied.

Residential bridging loans are short-term by design. They usually run from a few months up to around 18 months, depending on the lender and the purpose of the loan.

Repayment is usually made in full at the end of the term. Common repayment methods include refinancing onto a mortgage, selling the property, or using other available funds.

Not necessarily. While many residential bridging loans are secured against an existing property, lenders may accept different forms of security depending on the circumstances.

The deposit requirement depends on the loan-to-value ratio set by the lender. Typically, borrowers should expect to contribute at least 25–30% of the property’s value, though exact figures vary.

Some lenders will consider applicants with a less-than-perfect credit history, especially if there is a clear repayment strategy in place. An experienced broker can help identify suitable options.

No. Homeowners often use them to secure a new home before selling their current property, as well as for chain repairs or time-sensitive purchases.

In addition to monthly interest, borrowers should allow for arrangement fees, legal fees and valuation costs. An adviser will outline all charges in advance so you know the total cost of borrowing.

Many lenders allow early repayment, though some may charge an exit fee or require a minimum interest period. It’s important to check the terms before committing.