First charge and second charge
A 'charge' is a legal agreement that lists the order in which lenders will be repaid if you're unable to repay your loan. If you have an existing mortgage, the bridge loan becomes a second charge.
Bridging loans
Find great rates on bridging loans.
MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident. Your home is at risk if you cannot keep up with repayments.
What is a bridging loan?
A bridging loan is a short-term secured loan, which is typically used to 'bridge the gap' when purchasing property at auction, or when you need to buy a property before selling another.
When applying for this type of loan, you put up a secure asset as collateral - such as your home, and typically pay back the loan in a shorter amount time, sometimes as little as a few weeks.
Read our bridging loans guide to find out more.
How do they work?
1) Pay the deposit: You need to put down £100,000 deposit to fund a property purchase of a new £350,000 house. The rest will be borrowed through a mortgage.
2) Plug the gap: Because you’re waiting to sell your existing property you only have £25,000 in savings, leaving a shortfall of £75,000 for the deposit.
3) Use bridge finance: You choose to take out a bridging loan for £75,000 to 'bridge the gap' for the deposit until your house sale goes through.
4) Pay back the loan: When your current house sells for £250,000 you repay the bridging loan and the interest to clear the borrowing.
What are the different types of bridge loans?
Here are the main types of bridging loans available:
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Fixed or variable interest
Bridging-loan interest rates can be either fixed rate, where your monthly repayments will stay the same for the length of the loan, or a variable rate, where the interest rate can change.
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Open bridge loan
An open bridge loan means there’s no set date for paying off the loan, but you’ll usually be expected to pay it off within a year, or 24 months in certain circumstances.
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Closed bridge loan
With a closed loan, you’ll have a fixed date to repay your loan. This may suit you if you’re selling a property and waiting for completion to receive the money to put towards your new home.
We’ve partnered with Fluent Money to help you find the right bridging loan
We’ve partnered with specialist loan provider Fluent Money to help you find the right secured loan for your needs.
MoneySuperMarket is a credit broker not a lender. You must be 18 or over and a UK resident. Your home is at risk if you cannot keep up with repayments.
What can I use a bridge loan for?
Bridging loans are used for a variety of reasons to help bridge the gap when you don’t have the immediate funds available, including:
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Buying property at auction
You may need to borrow money quickly to secure a house at auction when a mortgage will take too long to come through.
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Renovation
Bridging loans are often used to cover refurbishment costs until it’s possible to remortgage to release equity for the project, or for property investors to fund renovations in rental property.
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Purchasing land
Could help cover the cost of buying the land and the building work for a new home, while you apply for a mortgage.
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Fix a broken property chain
A way of continuing with the purchase of a new home, even if the sale of your property falls through and you need a new buyer.
How much can I borrow?
Bridging loans typically start at around £25,000, but some lenders offer higher amounts, potentially up to tens of millions.
On a bridging loan, you can borrow up to 75% of the property's value, with some lenders extending this up to 80%.
The exact amount will depend on your financial circumstances, the property's value, and the lender's specific criteria.
You can use our loans calculator to figure out how much you could borrow and how it could help you reach your desired loan to value (LTV).
How long will it take for my bridging loan to be approved?
As this is a short-term loan, it will be approved reasonably quickly. You should expect to wait between 5-21 days for approval.
What is the repayment period?
Bridging loans are a short-term agreement, with a repayment period of around 12 months. However, some terms can be as short as a week or two.
It's essential to understand the specific terms and conditions of the loan before committing.
How much do bridge loans cost?
The two main costs associated with these types of loans include interest rates and arrangement fees:
Interest rates
0.5% - 2%
These monthly rates are often higher due to the short-term nature and higher risk associated with bridging loans. Rates will also depend on how much equity you have in your home (your security) and your credit rating.
Arrangement fees
2%
Arrangement fees cover the lender's costs in setting up the loan, including loan processing, legal work, and potentially other administration tasks. This fee is usually a percentage of the loan amount, with 2% being a common figure.
What other fees to I have to pay on a bridge loan?
Valuation fees
To be approved for a bridging loan you’ll usually have a valuation on your property. Often, we can approach lenders on your behalf who will do a desktop or automated valuation, saving you time and money.
Exit fees
Lenders sometimes charge a redemption fee when the loan comes to an end, most of the lenders we work with do not charge exit fees.
Legal fees
Both yourself and the lender will require legal representation, speak to your adviser who can provide an indication of cost. Some lenders have solicitors who can represent both themselves and you (dual rep) which can help save you time and money.
Will base rate cuts make loans cheaper?
Yes, base rate cuts from the Bank of England can make loans cheaper, as lenders typically lower their lower their Annual Percentage Rates (APRs) on loans once a cut is announced.
The current base rate stands at 4%, after a 0.25% reduction in August 2025. If cuts continue, it's good news for those requiring a bridge loan, as they tend to have higher APRs than other types of loans.
However, not all lenders adjust their rates at the same pace. Some may quickly pass on the savings to borrowers, while others may delay or make smaller adjustments.
What are the pros and cons of bridging loans?
There are several factors to weigh up when deciding if a bridging loan is the right choice for you. Here are some potential advantages and disadvantages to consider:
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Advantages
Quick payout: Unlike a conventional mortgage, a bridge loan could be paid out in a matter of days
Larger loans: Bridging loans are secured against property so you should be able to borrow more money
Range of options: They provide choice and flexibility such as fixed or variable interest and open-ended or closed loan terms
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Disadvantages
Interest rates: Bridge loans tend to have higher interest rates than other types of loan, with interest typically calculated monthly
Fees: There can often be fees to pay, such as exit fees, arrangement fees and legal fees
Risk of repossession: Bridging loans are secured against your property, so your home is at risk if you can’t keep up with repayments
Is a bridging loan right for me?
Whether a bridge loan is the right choice for you will depend on your personal, financial circumstances and whether you’re willing to use your home as collateral.
A bridging loan may suit you if you’re looking for a short-term loan for a large sum of money that you’ll be able to pay back quickly. To be eligible for a bridging loan in the UK, you’ll need to meet the following criteria:
You must be aged 18 or over
Have a valuable asset to use as collateral (usually your home) and be UK resident
Like any secured loan, a bridge loan carries risk. You could lose your home if you struggle to keep up with repayments, so make sure you consider all your options before you apply.
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Can I get a bridging loan with a bad credit score?
You may still be able to get a bridge loan with bad credit. The lenders’ primary criteria is usually the value of the asset you’re putting up as security and how you plan to pay off the loan (known as the ‘exit strategy’).
Since the ‘asset’ is usually your property, which you’re in the process of selling, expect the lender to require a valuation.
Your credit score is probably a bit less important with bridging loans than with other types of borrowing.
Having said that, the lender will still take it into account and it could still mean you’re rejected or get offered higher rates if your credit score is bad.
How to find the best bridging loan
Think a bridging loan might be right for you? Here’s how to make sure you get the right loan at the right rate:
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Do your sums
Well before you start comparing loans, work out how much you think you’ll need to borrow and over what sort of term
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Gather your paperwork
Lenders require extensive information about you and your property, like the value of your home, your income, and equity
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Compare loans
Pay close attention to rates and fees when you're comparing what's out there and consider hiring a broker to help you find a loan
How to compare bridging loans with MoneySuperMarket and our partner Fluent
See personalised deals and find the right bridging loan for you with MoneySuperMarket and our partner Fluent Money.
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Tell us about yourself
We’ll need to know a bit about you. Register yourself as a homeowner to see secured loans in the results.
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We’ll browse the market
We’ll show you loans you’re eligible for – if you choose a secured loan you’ll need to register your interest with our partner Fluent.
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Weigh up your options
Fluent will contact you to discuss your secured loan options. Once you’ve decided on a loan you can make your full application
What are my other lending options?
If you're unsure whether or not a bridging loan is the right option for you, there are other options when it comes to lending money for a property. Here are some common alternatives:
Second mortgage
If a bridging loan isn’t right for you, you could consider getting a second mortgage. Second mortgages use the capital (or equity) in your home as security.
Personal loan
Personal loans are unsecured, so you’re not borrowing against your property and your home isn’t at risk. But this means there’s a limit to how much you can borrow, usually up to £25,000.
Remortgage
Restructuring your existing mortgage can be a way to release funds – if you have sufficient equity built up in your home. You can switch to a new mortgage deal with your existing lender or move to a new lender, increasing your mortgage to release cash. It’s also a good chance to find a lower mortgage interest rate if possible.
Our expert says…
According to the latest data from Bridging & Development Lenders Association (BDLA), bridge lending reached a record £2.3bn in completions in Q4 for 2024, which is an impressive 28.6% rise from the previous quarter.
This tells us that bridge loans are becoming an increasingly popular lending method. With this in mind, it’s important to remember that these types of loans are expensive and you run the risk of losing your property if you can’t keep up with repayments.
So, as with any financial contract, go in carefully, armed with a good understanding of the full details behind this extra borrowing, and with a strong plan for paying it back on time and in full.
Kara Gammell Personal Finance & Insurance Expert
Trusted Service Awards Winners
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
Do you require a first charge loan or second charge loan?
A second charge loan applies if you already have a loan secured against a property that already has an outstanding mortgage. So for improvements such as extensions, you’d need to take out a second charge bridging loan. The distinction lets the lender know who has priority in the repayment if you can’t pay off the loan by the end of the term. If however you’re taking out a new loan secured against the property, you’d qualify for the first charge loan.
Will your bridging loan be regulated or non-regulated?
A bridging loan will be classed as regulated if a property you offer as security is your own home. Certain lenders do not offer regulated bridging loans so it is important to take appropriate advice from an expert in the first instance.
What happens if I can’t make repayments on my bridging loan?
If you can’t make your bridging loan repayments, then you could lose your home and damage your credit score.
Can I use a bridging loan for a buy-to-let property?
Yes, you can. Some landlords may apply for a bridging loan to help them secure a deposit for their buy-to-let property.
How much equity do I need for a bridge loan?
As a bridge loan requires you to put down your current home or other valuable asset as collateral, you’ll need equity in your property. How much equity you’ll need for a bridging loan will depend on the provider, but our partner Fluent asks that you have at least 35% equity.
Are bridge loans a good idea?
Whether a bridge loan is the right choice for you will depend on your personal, financial circumstances and whether you’re willing to use your home as collateral. Like any secured loan, a bridge loan carries risk. You could lose your home if you struggle to keep up with repayments, so make sure you consider all your options before you apply.
Do bridging loans do credit checks?
Yes, bridging loan lenders will always perform a credit check before offering a loan. However, they will also consider other factors such as the security you can offer and your exit strategy.
Can you get 100% bridging finance?
Yes, it is possible to get 100% bridging finance, but it usually requires offering other assets as additional security. This often involves using multiple properties as collateral. The criteria and costs for such loans are generally more stringent.
Lenders
Curious about who’s behind the loans? Take a look at each lender’s page below to learn more:
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