Bridging loans are short-term secured loans designed to bridge a gap in property finance. They are typically used when speed is critical or when a property does not qualify for conventional mortgage lending.\n\nCommon Uses — Purchasing at auction (where you must complete within 28 days). Breaking a property chain when your sale has not yet completed. Funding refurbishment before refinancing onto a standard mortgage. Development exit finance while waiting for sales to complete. Purchasing uninhabitable properties that standard lenders will not fund.\n\nRegulated vs Unregulated — Regulated bridging loans are for properties you or your family will live in and are overseen by the Financial Conduct Authority. Unregulated bridging loans are for investment or commercial purposes and offer more flexibility but less consumer protection.\n\nCosts — Interest rates typically range from 0.44% to 1.5% per month. Arrangement fees are usually 1-2% of the loan amount. Legal fees, valuation fees, and exit fees may also apply. Always calculate the total cost of the loan including all fees before committing.\n\nExit Strategy — Every bridging loan requires a clear exit strategy (how you will repay). Common exits include selling the property, refinancing onto a standard mortgage, or completing a development and selling units. Lenders will not proceed without a credible exit plan.\n\nChoosing a Lender — Consider speed of completion, maximum loan-to-value, total cost (not just headline rate), flexibility of terms, and track record. Working with a specialist bridging broker can help you access the whole market and negotiate better terms.