A bridging loan is short-term finance secured on property, usually for 1–24 months. We arrange loans from £50,000 to £50 million+, up to 80% gross loan-to-value. Monthly interest is typically 0.64%–1.2%. Indicative terms usually come back within 2 hours, and straightforward cases can complete in as little as 2–5 days. You repay by selling or refinancing the property.
£50k to £50m+
Max LTV
80% gross
Indicative terms
Within 2 hours
2–5 days
Data as of
October 2026
How does a bridging loan work?
A bridging loan is secured on property and repaid in one lump sum at the end of the term. Interest is usually retained (deducted upfront) or rolled up and added to the balance, so there are normally no monthly payments.
Lenders care most about two things: the value of the security and your exit, meaning how the loan will be repaid. A clear exit, such as a confirmed sale or a refinance onto a buy-to-let or commercial mortgage, gets the best terms.
“Exit is a key consideration for Lenders, it is always good to have a plan B. If you plan to sell, show that you could also refinance. For example, switching to a buy-to-let mortgage if the sale is delayed. A credible second option gives the lender comfort.” — Ashley Thomas, Director
How much does a bridging loan cost?
Monthly interest is typically 0.64%–1.2%, plus an arrangement fee of around 2%. Valuation and legal costs are extra. Typical ranges across our panel:
0.64%–1.2% per month
Around 2% of the loan
From £1,000 (desktop or AVM less)
Often none, up to 1%
Up to 1%, agreed upfront
Bridging loan calculator
See how much you could borrow and what it could cost. Change any figure to match your case.
Send these figures for terms →What can a bridging loan be used for?
Specialist bridging we arrange
Refurbishment and development
For refurbishment or development, lenders typically fund up to 75% of the purchase price and up to 100% of build costs, capped at around 65% of gross development value (GDV). Light refurbishment means cosmetic, non-structural work; heavy refurbishment and development involve structural work or planning.
GuideLight or heavy refurbishment bridging: which do you need?Read →GuideDevelopment exit finance: when to use itRead →Land, with or without planning
We arrange bridging on land, with or without planning permission. Land is higher risk for lenders, so loan-to-value is typically lower, at around 50%.
Auction finance
Auction purchases usually need to complete within 28 days, which is often too quick for a standard mortgage. A bridging loan can fund the purchase in time, and you repay it by refinancing or selling. Get terms agreed before the auction, so you know where you stand when you bid.
GuideHow to finance an auction purchase in 28 daysRead →Regulated vs unregulated bridging
A bridging loan is regulated by the FCA when it is secured on a property that you, or a close family member, live in or will live in (at least 40% of the property).
Loans on investment, commercial or company-owned property are usually unregulated. Far more lenders offer unregulated bridging. It is quicker to arrange, but has fewer consumer protections.
Capito arranges unregulated bridging. If your loan would be regulated, we pass your enquiry to an authorised partner firm, which will contact you and handle it.
GuideRegulated or unregulated bridging: what's the difference?Read →Need working capital or equipment finance? See business finance →Illustrative example
£500,000 auction purchase, 12-month term
An investor buys a property at auction for £500,000 and must complete within 28 days.
Gross loan: £375,000 (75% loan-to-value)
Interest: 0.75% per month, retained for 12 months = £33,750
Arrangement fee: 2% = £7,500
Net advance: £333,750
Deposit: £166,250, plus valuation and legal costs
At the end of the term, the investor repays the £375,000 loan by refinancing onto a buy-to-let mortgage or selling the property.
Illustrative only: rates and fees vary by lender and case.
Bridging loan FAQs
What is a bridging loan?
A bridging loan is short-term finance secured against a property, usually for 1–24 months. You repay it by selling the property or refinancing onto longer-term finance.
How much can I borrow with a bridging loan?
We arrange bridging loans from £50,000 to £50 million+. The maximum is 80% of the property's value (gross loan-to-value), and land is typically lower at around 50%. Property type and location also affect how much you can borrow.
How much does a bridging loan cost?
Monthly interest is typically 0.64%–1.2%, with an arrangement fee of around 2%. Many lenders charge no exit fee, though some charge up to 1%. Valuation and legal fees are extra. Any broker fee is generally up to 1%, depending on how complex the case is, and we agree it with you upfront. Rates and fees vary by lender and case.
How is interest paid on a bridging loan?
Interest can be retained (deducted upfront for the whole term), rolled up (added to the balance each month and repaid at the end) or paid monthly. Retained and rolled-up interest mean no monthly payments. Use our calculator above to compare the options.
How long does a bridging loan take to arrange?
Indicative terms usually come back within 2 hours, and sometimes within minutes. Straightforward cases can complete in as little as 2–5 days once valuations and legal work are done. Completion can be faster where solicitors can use indemnity insurance instead of full searches. More complex cases take longer.
Do I need a full valuation?
Not always. Some lenders accept a desktop or automated valuation (AVM), which is cheaper and much quicker. A full valuation typically costs from around £1,000, depending on the property's value and type.
Can I get a bridging loan for an auction purchase?
Yes. Auction purchases usually need to complete within 28 days, which is often too quick for a standard mortgage. A bridging loan can fund the purchase in time, and you then repay it by refinancing or selling. Speak to us before the auction so terms are ready.
Can I use a bridging loan for refurbishment or development?
Yes. Light refurbishment covers cosmetic and non-structural works. Heavy refurbishment and development involve structural work or planning. For refurbishment or development, lenders typically fund up to 75% of the purchase price and up to 100% of build costs. This is capped at around 65% of the gross development value (GDV).
Can I get a bridging loan on land?
Yes, with or without planning permission. As land is higher risk for lenders, loan-to-value is typically lower at around 50%. Planning status, access and a clear exit all affect the terms.
Can I take a second-charge bridging loan?
Yes. A second-charge bridging loan sits behind an existing mortgage, so you can raise funds without repaying your current lender. The lender looks at the equity left after the first charge, and you may need your first lender's consent. Second-charge loans are riskier for the lender, so rates and fees are typically higher.
What is an exit strategy and why does it matter?
Your exit is how the bridging loan will be repaid, usually by selling the property or refinancing onto a longer-term mortgage. It is one of the main things lenders assess. The strongest cases have a plan B. If a sale could be delayed, showing you could refinance onto a buy-to-let mortgage instead gives the lender comfort.
What is the difference between open and closed bridging?
A closed bridge has a fixed repayment date, usually because a sale or refinance is already agreed. An open bridge has no fixed date but must be repaid within the maximum term, typically 12–24 months.
Can a limited company or SPV take a bridging loan?
Yes. Many bridging loans are made to limited companies and special purpose vehicles (SPVs), and most unregulated bridging is arranged this way. Lenders usually ask the directors for personal guarantees.
Can I get a bridging loan with bad credit?
Often, yes. Bridging lenders focus more on the property's value and your exit than on your credit history. Recent defaults or CCJs can still affect the rate and loan-to-value.
What happens if my exit is delayed?
Many lenders will agree an extension for a fee. If they won't, default interest can apply, so talk to your lender early. We plan the exit with you before you borrow to reduce this risk.
What's the difference between regulated and unregulated bridging?
A bridging loan is regulated when it is secured on a property that you, or a close family member, live in or will live in. Loans on investment, commercial or company-owned property are usually unregulated. Capito arranges unregulated bridging. If your loan would be regulated, we pass your enquiry to an authorised partner firm.
Tell us about the property and we'll come back with indicative terms from our panel, usually within 2 hours.