Exclusively for UK Limited Companies & SPVs

Bridging Loans for UK Limited Companies

Fast, flexible corporate short-term finance for auctions, refurbishments, and property acquisitions

Also explore:Commercial Mortgages•Development Finance•Bridging Guide•£650K Auction Case Study

What is a Bridging Loan?

A bridging loan is a short-term secured financing facility designed to 'bridge' a timing gap between an immediate capital requirement and a long-term liquidity event—such as property sale or refinancing onto a commercial mortgage. These corporate loans are secured against UK property and typically span from 1 to 24 months. For full details on costs and strategies, read our Bridging Loans Guide.

Bridging finance is characterised by:

Rapid capital release, often completing in 7 to 14 days rather than months
Flexible asset underwriting based on gross development potential rather than strict historical trading
Interest that can be rolled up or retained so your business has no monthly payment burden during works
Loans secured against commercial buildings, mixed-use assets, or residential development land

At Commercial Mortgage Dealer, our matching platform connects your company directly with 100+ active bridging lenders and credit funds. Model your exact interest roll-up and net borrowing proceeds with our interactive Commercial Bridging Loan Calculator.

See how an investor funded an immediate auction purchase and renovation in our £650K auction completion case study.

When to Use Bridging Finance

Property Auction Purchases

When buying at auction, you typically need to complete within 28 days. Bridging loans can provide the fast funding needed to secure your purchase while arranging longer-term finance.

Breaking Property Chains

If you've found your ideal property but haven't yet sold your existing one, a bridging loan can help you secure the new purchase without waiting for your sale to complete.

Property Refurbishment

For properties that need significant renovation before they qualify for a traditional mortgage, bridging finance can fund both the purchase and the refurbishment costs.

Business Cash Flow

When your business needs immediate capital for time-sensitive opportunities or to resolve short-term cash flow issues while awaiting longer-term funding.

Unmortgageable Properties

For properties that don't meet standard mortgage criteria due to issues like non-standard construction or lack of facilities, bridging can provide funding until these issues are resolved.

Development Exit Finance

When a development is complete but sales are taking longer than anticipated, bridging can repay the development finance while you wait for property sales.

Types of Bridging Loans

Closed Bridging Loans

These are used when you have a definite exit strategy with a fixed date, such as a property sale that's already exchanged contracts. Closed bridges typically offer lower interest rates due to the reduced risk.

Open Bridging Loans

When your exit strategy is in place but the exact date is uncertain, such as a property that's on the market but hasn't yet sold. These typically have higher rates reflecting the additional uncertainty.

First Charge Bridging Loans

When the bridging loan is the only or primary finance secured against the property. These typically offer better rates and higher loan-to-value ratios.

Second Charge Bridging Loans

When there's already a mortgage or other finance secured against the property. These allow you to access additional funds without disturbing your existing arrangements.

Residential Investment Bridging (SPV / Corporate)

Secured against residential investment properties held within UK Limited Companies or SPVs. These unregulated corporate facilities provide fast capital for refurbishment, conversions, or auction acquisitions.

Commercial Bridging Loans

Secured against commercial property such as offices, retail units, or industrial buildings. These are typically unregulated and offer more flexibility.

Key Features & Benefits

Rapid Funding

Access funds in as little as 7-14 days, perfect for time-sensitive opportunities.

Flexible Criteria

Less stringent requirements than traditional mortgages, with focus on the security and exit strategy.

Serviced or Rolled-Up Interest

Option to pay monthly or roll up interest to be paid at the end of the term.

High Loan-to-Value

Borrow up to 75% of the property value, with some lenders offering even higher in specific circumstances.

Short-Term Commitment

Loans typically range from 1 to 24 months, providing the flexibility you need without long-term obligations.

No Early Repayment Charges

Many bridging loans allow early repayment without penalties, giving you maximum flexibility.

Frequently Asked Questions

How quickly can I get a bridging loan?

With the right documentation and a straightforward case, bridging finance can be arranged in as little as 7-14 days. More complex cases may take longer, but still significantly faster than traditional mortgages.

What are the interest rates on bridging loans?

Rates typically range from 0.5% to 1.5% per month, depending on loan-to-value ratio, asset security, and exit viability. To test longer-term refinancing costs when your bridge matures, utilise our Commercial Mortgage Calculator.

What is a valid exit strategy?

An exit strategy is your defined repayment plan. Common commercial exit routes include transitioning to a term commercial mortgage, selling the refurbished asset, or refinancing into an SPV buy-to-let mortgage. Learn more in our Bridging Loans Guide.

Can I get a bridging loan with bad credit?

Yes, it's possible. Bridging lenders are generally more concerned with the security (the property) and your exit strategy than your credit history. However, adverse credit may affect the rates offered or the maximum loan-to-value available.

Do you arrange regulated residential bridging loans for homeowners?

No. We arrange commercial bridging finance exclusively for UK registered Limited Companies, LLPs, and corporate SPVs for business, development, or property investment purposes. Commercial property loans arranged for corporate entities are not regulated by the Financial Conduct Authority (FCA). We do not arrange regulated mortgage contracts or consumer credit secured against owner-occupied residential homes.