Residential Bridging Finance
Discuss short-term property funding for a purchase or a gap between transactions. Understanding the costs and a realistic exit strategy is essential before proceeding.
Tell us what you want to achieve. We’ll explain what we need to understand your circumstances.
Support that fits your situation
Residential bridging loans provide short-term finance for residential property transactions where speed or flexibility is required. They can support purchases, refinancing and refurbishment projects while longer-term finance or the sale of a property is being arranged.
Read common questions ↓Before you proceed
We’ll help you understand the overall costs and practical considerations. Advice and availability depend on your circumstances and the lender’s criteria.
Regulated and unregulated bridging
Where the property is, or will be, lived in by you or a close family member, a bridging loan secured on it is a regulated mortgage contract, regulated by the Financial Conduct Authority. Pure Capital Limited is authorised and regulated by the FCA (firm reference number 957322) and advises on and arranges these loans. We must recommend a loan that is suitable for you, and you can complain to the Financial Ombudsman Service. Your home may be repossessed if you do not keep up repayments on your mortgage.
Most other bridging loans, such as those secured on an investment property you let out, or on commercial property, are not regulated by the FCA. The protections that apply to regulated mortgages may not apply. We explain which position applies to your case, and the costs, before you proceed.
Make room to plan
Use our calculator to explore the numbers, then speak to us about your individual circumstances. Results are estimates, not a mortgage offer or advice.
Common questions
A residential bridging loan is a short-term secured loan used to finance residential property transactions. It is commonly arranged where funding is required before longer-term finance is available or before another property is sold. The loan is intended as temporary finance and should always have a clearly defined exit strategy.
Residential bridging finance may be considered for a range of property transactions, including purchasing a property before selling an existing home, buying at auction, funding refurbishment projects or refinancing while arranging a long-term mortgage. The suitability of a bridging loan depends on your individual circumstances and the lender's criteria.
Yes. Bridging finance is commonly used for auction purchases, where completion deadlines are often much shorter than those associated with traditional mortgage applications. The borrowing remains subject to lender criteria and a suitable exit strategy.
Yes. Residential bridging loans are frequently used to fund refurbishment projects before the property is sold or refinanced. The type and scale of the works, together with the lender's criteria, will influence the finance available.
An exit strategy explains how the bridging loan will be repaid at the end of the agreed term. Common examples include selling the property or refinancing onto a longer-term mortgage. Lenders will assess the proposed exit strategy before approving a bridging loan.
The amount available depends on factors such as the property's value, the lender's maximum loan-to-value limits, the proposed exit strategy and the overall strength of the application. Every lender applies its own criteria.
Lenders typically request proof of identity, proof of address, details of the property, information supporting the proposed exit strategy and any additional documentation relevant to the transaction. Requirements vary between lenders.
In addition to interest, there are several fees to consider. These often include an arrangement fee, valuation fees, legal costs and sometimes exit or redemption fees. These costs can add up, so it is important to understand the full picture before proceeding.
The timescale depends on the lender, the property's complexity, valuation requirements and legal work. Providing complete documentation from the outset can help avoid unnecessary delays during the application process.
Many bridging loans can be repaid before the end of the agreed term, although this depends on the lender and the loan product. Any early repayment conditions or charges should be reviewed before proceeding.
Residential bridging finance involves specialist lending criteria, varying loan structures and careful consideration of the exit strategy. Professional advice helps you compare the available options and arrange borrowing that supports your property objectives.
Pure Capital Limited is authorised and regulated by the Financial Conduct Authority (firm reference number 957322). A bridging loan or mortgage secured on a home that you or a close family member live in is regulated. Most other bridging loans and most buy-to-let mortgages are not. Fees and commissions will be explained before you proceed.
