A bridging loan is a short-term financing solution designed to “bridge the gap” between a financial obligation and securing long-term funding. Most commonly used in property transactions, bridging loans provide fast access to capital — often within days — when traditional mortgage routes are too slow or unavailable.

For example, if you’re buying a new home but haven’t sold your current one, a bridging loan in the UK can fund the purchase while you’re waiting for the sale to complete. Once your property sells or long-term finance is in place, the bridging loan is repaid in full, typically within 12 months.

The amount you can borrow depends on the loan-to-value (LTV) ratio, the type of property, your exit strategy, and your financial position. Most lenders in the UK offer up to 75% LTV on residential properties and slightly less for commercial or mixed-use properties.

At Mortgage-teK, we assess your needs and match you with UK bridging loan lenders offering terms that fit your situation — whether you’re borrowing £50,000 or £5 million.

Bridging loan interest rates usually range from 0.4% to 2% per month, depending on:

• The loan size and duration
• Property type (residential vs. commercial)
• Your credit profile and exit strategy
• The lender’s risk appetite

While bridging loans are more expensive than standard mortgages, they’re designed for short-term use and fast execution. At Mortgage-teK, we compare rates across top bridging loan providers in the UK to get you the most competitive deal.

Bridging finance is known for speed. Many loans are approved and funded within 3 to 10 working days, depending on how quickly documents, valuations, and legal checks are completed.

We work with bridging loan lenders who specialise in fast completions — ideal if you’re working to tight deadlines, such as auction purchases or urgent acquisitions.

In addition to monthly interest, you may be charged:

• Arrangement fee: Usually 1–2% of the loan amount
• Valuation fee: For assessing the property value
• Legal fees: Both yours and the lender’s
• Exit fee: Not all lenders charge this, but some do upon repayment

At Mortgage-teK, we provide a full breakdown of all costs upfront, so there are no hidden surprises.

• Residential bridging loans are used for buying, refinancing, or releasing equity from homes — whether it’s your main residence or an investment property.
• Commercial bridging loans are for properties like offices, shops, warehouses, or mixed-use developments, and typically involve more complex lending criteria.

Mortgage-tek arranges both, helping you navigate each with ease — including semi-commercial bridging loans if your property combines living and business use.

• Not always. Many bridging loans offer a “rolled-up” interest option, where the interest is added to the loan and repaid in full at the end of the term. This can help with cash flow if you’re waiting for a property sale or refinancing.

  Alternatively, you can choose to service the interest monthly, which reduces the amount payable at the end.

  We’ll help you decide which structure works best based on your financial plans and exit strategy.