It's clear and easy
Just follow our step-by-step process. We’ll start by asking you a few simple questions about the type of loan you’re looking for.
Find great rates on bridge finance
Specialist loans from our partner Fluent Money
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.
Just follow our step-by-step process. We’ll start by asking you a few simple questions about the type of loan you’re looking for.
Working with our partner Fluent Money, you’ll have direct access to experienced and specialist advisers.
You’ll find competitive and flexible bridging loans tailored to your needs.
A bridging loan is usually short-term borrowing used to bridge a gap in funding until your house sale goes through.
For example, bridging loans can be used if you buy a property at auction and need the cash immediately but haven’t yet sold your current home. Be mindful that as a secured loan, a bridging loan will be secured on your property meaning if you struggle to keep up with repayments your home could be at risk.
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.
Bridge loans help to 'bridge the gap' when you need to borrow money for a short amount of time. They're most commonly used when you want to buy a new home, but your current home hasn't been sold yet. Here’s how a typical bridging loan might work:
You need to put down £100,00 deposit to help buy a new £350,000 house. The rest will be borrowed through a mortgage.
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.
You choose to take out a bridging loan for £75,000 to 'bridge the gap' for the deposit until your house sale goes through.
When your current house sells for £250,000 you repay the bridging loan and the interest to clear the borrowing.
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:
Quick payout: Unlike a conventional mortgage a bride loan could be paid out in a matter of days
Bridging loans are secured against property so you should be able to borrow larger sums
They provide choice and flexibility such as fixed or variable interest and open-ended or closed loan terms
Bridge loans tend to have higher interest rates than other types of loan with interest typically calculated monthly
There can often be fees to pay, such as exit fees, arrangement fees and legal fees
Bridging loans are secured against your property so your home is at risk if you can’t keep up with repayments
Bridging loans are used for a variety of reasons to help bridge the gap when you don’t have the immediate funds available, including:
You may need to borrow money quickly to secure a house at auction when a mortgage will take too long to come through.
Bridging loans are often used to cover renovation costs until it’s possible to remortgage to release equity for the project.
Could help cover the cost of buying the land and the building work for a new home, while you apply for a mortgage.
A way of continuing with the purchase of a new home even if the sale of your existing property falls through and you have to find a new buyer.
The cost of a bridging loan depends on several factors. On top of paying back the loan and interest, you’ll also need to calculate the following:
Valuation fees: To be approved for a bridging loan you’ll usually have a valuation on your property
Arrangement fees: Costs tend to include arrangement fees, which usually amount to a percentage of the loan (typically 2%)
Exit fees: Lenders often charge a redemption fee when the loan comes to an end, for example to remove their name from the title deeds on your property
There are a different types of bridging loan available including:
When you take out a bridging loan, a ‘charge’ is placed on your property. This is a legal agreement that lists the order in which lenders will be repaid if you're unable to repay your loans. If you have an existing mortgage, the bridge loan becomes a second charge.
Bridging loan interest rates can be either fixed or variable. With a fixed rate you’ll know exactly how much you’ll be charged and your monthly repayments will be the same for the duration of the loan. With a variable rate the interest rate can change.
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. This type of loan may suit you if you’ve found a house you want to buy but haven’t yet sold your current home.
With a closed loan you’ll have a fixed date to repay your loan. A closed bridge loan may suit you if you’re selling a property and waiting for completion to receive the money to put towards your new home.
See personalised deals and find the right bridging loan for you
We’ll need to know a bit about you. Register yourself as a homeowner to see secured loans in the results.
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.
Fluent will contact you to discuss your secured loan options. Once you’ve decided on a loan you can make your full application
To make sure you’re choosing the right kind of bridging loan, here’s what you should consider:
Is this 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.
Are you paying fixed or variable rates?
You can choose a fixed or a variable rate on a bridging loan. A fixed rate gives you the security of knowing exactly how much interest you will pay on the loan, but fixed rates tend to be slightly higher than the variable rates on offer. With a variable interest rate the rate can change from month to month.
There are a number of advantages when opting for a bridging loan for high-cost transactions:
You’ll receive your money quickly
You can borrow a large amount of money
Flexible borrowing might apply
The drawbacks to bridging loans include:
The loan is secured against your property, so you risk losing ownership if you can’t repay
The high interest rates that come with the loan – this is because you pay for the flexibility and swift payment
You’ll be charged a number of fees so it’s a costly option
While a bridging loan can be arranged quicker than a mortgage, it can still take anything from a few days to several weeks to complete. This is because it’s a secured loan, and if you’re using your property as collateral, a valuation is usually needed, as well as credit checks.
Whether you can get a bridge loan with bad credit will depend on your personal, financial situation. If you’ve struggled with credit in the past, you may still be approved for a bridging loan as you’ll be using your property (or other valuable asset) as collateral. Certain lenders may be more inclined to lend money to someone with bad credit if they’re putting up security. Just keep in mind that if you struggle to keep up with repayments, you’ll run the risk of losing your home.
Representative 29.9% APR
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.
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.
Not sure if a bridging loan is the right option for you? Here’s some potential 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
Whether a bridging loan is the right choice for you will depend on your personal, financial situation and what you’re looking for when it comes to borrowing.
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.
Interest rates on bridging loans will differ depending on the borrower’s financial situation and the loan provider’s view of how likely you are to be able to keep up with repayments. If they believe the loan represents more of a risk they are likely to make it more expensive with higher interest rates.
Rates will also depend on how much equity you have in your home (your security), your credit rating and your affordability. Interest rates on bridging loans are also charged monthly, so bear this in mind as the annual rate may work out higher than it first appears.
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