A bridging loan is a short-term loan secured against a property or portfolio, designed to "bridge the gap" between a need for capital and a longer-term solution—like a mortgage, sale, or refinance.

In 2025, bridging loans are being used more than ever to:

• Raise capital fast
• Secure deals with tight deadlines
• Renovate or flip property
• Refinance when traditional lenders say no

If you need cash quickly and have the assets to support it, bridging can be a smart, flexible option.

🧠 When does a bridging loan make sense?

Bridging loans are ideal when:

✅ You’re buying a property at auction
✅ You need to complete before your mortgage is ready
✅ You're refinancing quickly to release equity
✅ You’re acquiring property that isn’t mortgageable (yet)
✅ You’re funding a refurb, flip, or development
✅ You want to pay off a tax bill or business loan using property equity

🏡 How much can you borrow?

Loan sizes typically range from £50,000 to £50 million+.

Lenders will usually offer up to:

• 75% Loan-to-Value (LTV) on residential property
• 65–70% LTV on commercial
• 100% funding possible with additional security or JV partners

💡 Some lenders will allow rolled-up interest, where you don’t make monthly payments but instead repay the loan + interest at the end.

🕒 How fast can you access the funds?

One of the biggest benefits of bridging finance is speed.

With the right broker and a motivated lender, you can often

:

⏱️ Complete in 5–10 working days
⚡ Even faster for repeat clients with docs ready
📑 Fast legal and valuation teams make all the difference

💡 Real-world use cases

🏠 Auction Purchase

You win a property at auction and need to complete in 28 days. Your mortgage won’t be ready in time. A bridging loan lets you buy now, then refinance onto a term mortgage later.

🛠️ Renovation Project

You find a fixer-upper at £220,000, worth £350,000 once modernised. A bridge lets you acquire the property and fund the works, then refinance at the higher value once completed.

🧾 HMRC Tax Bill

Your limited company has an unexpected VAT or corporation tax bill. A bridge secured on your BTL portfolio gives you breathing room to manage cash flow.

✅ Pros of bridging loans

• Speed — can complete in days
• Flexibility — structure interest, term, and security to suit your needs
• No early repayment charges
• Can fund complex or time-sensitive scenarios
• Accepts non-standard or un-mortgageable properties

⚠️ Things to watch out for

• Higher interest rates — typically 0.6% to 1.25% per month
• Short terms — usually 6–18 months
• Exit strategy is critical — you must show how the loan will be repaid
• Valuation and legal fees can be higher than standard mortgages

Lenders love certainty—so plan your exit

Your exit strategy is the most important part of a bridging deal.

Common exits include:

• Refinance to a standard mortgage
• Sale of the property
• Sale of another asset
• Maturity of investments or business cash flow

Without a clear and realistic exit plan, lenders will walk away.

How Willow structures bridging finance for success

At Willow, we work across the full UK bridging market—including:

• Residential & commercial
• Regulated and unregulated
• Light & heavy refurbishment
• Development exit & auction finance
• Complex ownership structures (LLPs, SPVs, etc.)

We help you:

• Choose the right lender and loan type
• Structure interest (retained, serviced, or rolled)
• Coordinate fast legals and valuations
• Package the case for quick approval
• Align the bridge with your long-term finance strategy

📞 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.