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Bridging Loans information

Bridging loans are a type of short-term mortgage when a traditional one is not suitable. We can help if you are not sure whether a bridging loan is right for you or how to go about getting one. Our specialist bridge loan mortgage team can find you the right solution.

  • Vast network of lenders to secure the best solution
  • Award-winning bridging finance brokers
  • Regulated by the FCA
  • Rated 'Excellent' by our clients


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What is a bridging loan?

A bridging loan is a short-term mortgage lending agreement where you can borrow a large amount of money for a short time. Traditionally, home buyers use bridging to 'bridge' the gap when buying a new property. Often our clients use bridging loans when the sale of their property is delayed but the new purchase needs to proceed.

As bridging loans are short-term, you will often need to pay off a bridging loan within 12 months, but the term could be longer or as short as a few weeks.

Bridging loans let you access money while you are waiting for funds to come through (for example, while you are waiting for the money from a house sale) but are paid off quickly once the money is available.

What are the different types of bridging loans?

There are two types of bridging loans:

  1. Open bridge loans: While there is not a fixed repayment date, you will usually be expected to pay the loan back within 12 to 24 months. These bridge loans are flexible but cost more. They are normally suitable if you have found a property you want to buy but have not sold your current home yet.
  2. Closed bridge loans: The payments for closed bridge loans are lower as they have a fixed repayment date. Choose a closed bridge loan if you have exchanged contracts but are waiting for completion.

If you choose a bridging loan to finance a property, you will need to have an 'exit plan', which outlines how you intend to repay the loan within the specified term.

What are first-charge and second-charge bridging loans?

Whichever bridging loan you agree to, the lender will put a 'charge' on your property. This means they will be able to take repayments from the property sale if you fail to repay the loan.

  • First charge bridging loan: A bridging loan lender uses this when you do not have other loans secured on your property, such as a mortgage. It means that the lender will get their money first if you cannot repay your loan.
  • Second charge bridging loan: This is used when you already have a loan or mortgage against your home. This means that if you fail to repay the loan and your home is sold to cover this shortfall, the bridging loan lender can only take repayment after the mortgage provider has recovered its costs.

Second-charge loans cost you more than first-charge loans as the second lender might not get their money back if you fail to keep up with the repayments.

It is important to note that your mortgage provider needs to consent to a second-charge loan.

What can I use a bridging mortgage or loan for?

Bridging loans can be used for a variety of reasons.

  • Renovations – If you are purchasing a property that is not suitable for a mortgage (due to its condition) but are funding a renovation, a bridging finance loan can transform a non-viable purchase into an opportunity.
  • Buying a property at auction – Typically, a buyer must complete within 28 days of an auction purchase. This might be challenging with a standard mortgage, especially if the property needs work. Bridging finance on a property gives you the money quickly.
  • Fixing a broken property chain after a sale falls through – A bridging loan can fix a broken chain as you will not need to rely on the sale of your home to complete on your new property.
  • Investing in a buy-to-let – A bridging loan lets you act as a 'cash buyer' or buy a property ready to 'flip' for a profit.

Can businesses use bridging loans?

Businesses can use commercial bridging finance loans for virtually anything. However, as these loans have high interest rates and are only designed for short-term financing, they are usually used for large purchases like property. For example, if you are a property developer, you might use a bridge loan to buy land quickly.

Businesses might also use a commercial loan like a bridging loan to buy stock or to cover overheads if trading is reduced.

How does a bridge loan work?

"Bridging loans are secured loans, so they work in the same way other secured loans do. The amount you can borrow depends on how much your security is worth (i.e., the value of your home).

Bridging loans can last anywhere from a month to three years but most bridging lenders will not let you borrow money for longer than 18 months. If you need longer than this to pay back the capital, you might want to consider other forms of finance such as a long-term personal loan.

As with all loans, you are charged monthly interest. You will need to pay this each month or as a lump sum at the end of the loan.

It is worth remembering that the longer you have your loan, the more interest you will need to pay, so it is better to repay the loan before the term ends to save money."


— Advisor working for Alexander Hall

How much can I borrow with a bridging loan?

The amount you can borrow with a bridging loan depends on your current financial situation and your credit history. You can usually borrow up to 75% loan to value (LTV) of the property you are buying. You can normally borrow more for a first-charge loan than a second.

To find out how much you can borrow, speak to our bridging loans specialists. We will craft a bespoke mortgage solution to help you finance the purchase of a new home without the restraints that can hold mainstream lenders back.

How much does a bridging loan cost?

Bridging loans often work out more expensive than other types of loans. Open bridge loans are the most expensive.

Bridging finance rates vary by provider but will range anywhere from 0.5% to 2%. Although this sounds like a low interest rate, it is important to remember that these bridging finance interest rates are charged monthly. This means that the difference between a 0.5% interest rate and a 2% interest rate can be significant. You will also need to pay additional fees such as:

  • Arrangement fees
  • Legal fees
  • Valuation fees
  • Exit fees (if your loan is repaid early)
  • Administration fees

How can Alexander Hall's bridging loan brokers help?

Access to private lenders

Most private lenders are not directly approachable as they work from third-party introductions.

Here at Alexander Hall, we have forged strong relationships with specialist lenders at some of the largest high street and independent banks. This means we can help you secure a competitive bridging loan that caters to your needs.

Bespoke bridging finance solutions

Bridging finance loans are a niche product so you must use specialist lending brokers who understand the intricacies involved to ensure you get the best possible deal. Our experts have the connections and know-how to create bespoke bridge finance solutions that can help you realise your property dreams.

You can rely on us to access funds quickly while still making sure you get the best possible deal.

How to get bridging finance loans with us

Here is how our bridging finance process works:

  1. Understanding needs: Before we start, we will have a thorough chat to get to know your financial situation and why you are considering bridging loans. We will let you know whether we think you would be a good candidate. If you are, by getting to know you, we can find the lender for you.
  2. Negotiating with lenders: Based on your situation, we will tap into our vast network of lenders to identify the most suitable ones. Using our years of experience and professional know-how, we will negotiate on your behalf to secure a favourable bridging finance rate.
  3. Gathering documentation: We know that time is of the essence with bridging loans. So, once we have found a suitable solution, we will help you quickly gather and organise the documents you need to make your application.
  4. Make your bridging loan application: We will submit your bridging loan application for you, acting as an intermediary from start to finish. And we will sort out your paperwork, so there's no need to worry about that either.
  5. Provide ongoing support: We know that bridging loans can be complicated. That is why we will support you throughout the process. We will keep you updated regarding the progress of your bridging loan and tackle any issues on your behalf.

Why choose Alexander Hall for bridging loans?

We have been helping our clients get access to bridging loans for 30 years, so we know a thing or two about finding mortgages that tick all the boxes. Here is why you should choose us:

  1. Advisors you can trust: Our bridging loan experts are committed to finding the best solution for your needs.
  2. Large network: We have over 100 lenders in our network, including those that specialise in bridging loans. We will tap into them to find a solution that caters to your circumstances.
  3. Stress-free process: Buying a property can be stressful. But from finding lenders to paperwork and negotiations, let us do the heavy lifting so you can focus on other things.
  4. We are award-winning: We have won many awards and accolades over the years, including Best Mortgage Broker for Customer Service in the Legal & General Mortgage Club Awards 2024.
  5. Outstanding service: We promise to deliver the highest level of customer service. Our commitment to our clients is reflected in our 'Excellent' Trustpilot rating, based on thousands of reviews.

Where to find our bridging finance brokers?

If you would like to come speak to us in person, we have offices across London. Arrange a bridging loan meeting with one of our expert brokers in:

  1. Canary Wharf
  2. London Bridge
  3. Shoreditch
  4. West End

Expert mortgage brokers you can rely on

Our expert mortgage brokers shine when it comes to securing tailored bridging loan solutions for a range of clients.

By getting to know you and your circumstances, we will simplify the bridge finance process for you. From finding the right lender to negotiating the best deal and sorting the laborious paperwork, you can trust us to take the stress out of your next mortgage.

To discuss a bridging loan for your next property purchase, contact our experts to arrange an initial meeting to discuss your requirements.

08000 38 37 36
Arrange a free appointment

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08000 38 37 36