Traditional mortgages have their place — but sometimes, you need speed and flexibility, not slow approvals and strict criteria.

That’s where short-term property finance comes in. Whether you're:

• Snapping up an auction property
• Completing quickly to secure a deal
• Funding a light refurb
• Rescuing a broken property chain
• Bridging between sale and purchase

...short-term funding gives you options.

In 2025, with a cautious but competitive lending landscape, specialist finance is often the smartest move.

What is short-term property finance?

It’s a loan secured against property, typically lasting from 1 to 18 months. The key features are:

• Fast approvals (often within 48 hours)
• Higher interest rates than mortgages
• Flexible criteria (less focus on income)
• Repayment via sale, remortgage, or other exit

The most common type? Bridging loans.

What are bridging loans?

Bridging loans are short-term, interest-only loans secured against a property or portfolio. They're designed to “bridge the gap” between a need for funding and the longer-term finance or sale of an asset.

Typical scenarios:

• Buying before selling
• Purchasing unmortgageable properties
• Auction finance (with 28-day completion)
• Portfolio restructuring
• Delays in mortgage approvals
• Business cash flow using property as security

Key features of bridging loans in 2025

📅 Terms: 1–18 months
📈 Rates: From 0.55%–1.25% per month (varies by risk and LTV)
💰 Loan sizes: From £50,000 to £50m+
🏦 LTVs: Up to 80% (gross), more with additional security
⚡ Speed: Funds in as little as 5–10 working days
🔄 Interest: Rolled up, retained, or serviced monthly

Rates in 2025 are still elevated vs pre-2022, but better than the peaks seen during the 2023 rate hikes.

Types of short-term finance in the market

🏠 Residential Bridging

For homeowners and investors. Used for chain breaks, downsize/upsizing, or unmortgageable property.

🏢 Commercial Bridging

Used to purchase or refinance shops, offices, mixed-use, HMOs, etc. Often for asset repositioning or value-add strategies.

🔨 Refurbishment Finance

Funds light to heavy refurbishment. Ideal for flipping or improving before renting/remortgaging.

🏗️ Development Exit Finance

Used to repay development loans while giving time to sell finished units — often cheaper than development finance.

🕒 Permitted Development / Planning Bridge

Finance secured while planning is obtained or permitted development works are carried out.

When to use short-term finance over a mortgage

Choose bridging when you need:

• Speed (mortgages can take 4–12 weeks)
• Flexibility (especially on unusual properties or credit profiles)
• Short duration (less than 24 months)
• Leverage for asset repositioning
• Time to stabilise income before refinancing

Avoid it if:

• You plan to hold the property long-term
• You don't have a clear or achievable exit strategy
• You’re not comfortable with higher monthly costs (if interest is serviced)

What do lenders look for?

Bridging is primarily asset-backed, but lenders still check:

• Your experience (especially for refurb/development)
• The property’s location and resale/remortgage potential
• The exit strategy (usually sale or refinance)
• Loan-to-value
• Legal title and any red flags

Some lenders accept adverse credit, offshore structures, or company borrowers — others don’t. That’s where a broker earns their fee.

Costs to consider

• Arrangement fee: 1–2% of the loan
• Valuation and legal fees
• Broker fee (if applicable)
• Exit fee (some lenders)
• Monthly interest
• Admin and redemption fees

Bridging isn’t cheap — but it’s about opportunity cost, not headline rates. If it helps you secure a property or avoid a costly delay, it can be the cheapest option in real terms.

Short-term finance for landlords & developers

Portfolio landlords, developers, and even hands-on flippers are increasingly turning to bridging for flexibility:

✅ Refinance quickly from standard mortgages
✅ Fund refurbishment on newly acquired stock
✅ Buy off-market before competition
✅ Smooth sales flow between developments

At Willow, we work with:

• Family offices
• Private lenders
• Bridging funds
• Challenger banks
• Peer-to-peer platforms
• Development specialists

Each lender has a sweet spot — we match you to the right one.

Don’t go it alone

Short-term finance is complex. Terms vary dramatically by lender, and delays can be costly.

Let Willow:

✔️ Run a fast eligibility check
✔️ Structure your loan around your exit
✔️ Handle valuation, legal, and drawdown
✔️ Manage tight timeframes (auction, chain break, refinance)

Even if your case is urgent, we can usually get terms agreed within 24 hours.

📞 Want Help Navigating Today’s Market?

Book a free strategy call with one of our mortgage specialists.

We’ll help you find the smartest way forward—whatever rates do next.