Published and reviewed 19 October 2026. General information, not advice. Figures are illustrations, not lender quotes.
The short version
- A commercial bridging loan is short-term finance secured on property, usually for 3 to 18 months, used when a business needs money faster than a commercial mortgage can complete, or for a property a mortgage lender will not yet fund.
- Interest is quoted per month. The Bridging Trends survey put the average at 0.81% a month in the second quarter of 2026, which is about 9.7% a year before fees. Arrangement, valuation and legal fees often add as much again on a short loan.
- Interest is usually retained or rolled up, so the cash you receive is less than the loan. In our example a £350,000 bridge on a £500,000 warehouse paid out about £307,300 after a year’s retained interest and a 2% fee.
- The exit is the loan. Lenders lend against a credible plan to repay, usually a sale or a refinance. In our example, letting the building six months late added about £21,350 in extra interest and an extension fee.
- Most bridges to companies on commercial property are not regulated by the FCA, so the facility letter is your protection. Read the default interest, extension and minimum interest terms before you sign.
What a commercial bridging loan is
A commercial bridging loan is a short-term loan secured on property, used by a business or investor to bridge a gap: between buying a property and arranging long-term finance, between buying and selling, or between a building as it is today and the building a mainstream lender will fund once it has been improved, let or given planning permission.
Bridging differs from a commercial mortgage in four ways that drive everything else in this guide.
- It is short. Terms usually run from 3 to 18 months, and the average term in the Bridging Trends survey was 12 months in the second quarter of 2026.
- It is priced by the month. Rates are quoted as a monthly percentage, such as 0.75% or 0.95% a month, rather than an annual one.
- It is usually interest-only, with nothing paid monthly. Most bridges retain or roll up the interest, so you repay the loan and all the interest in one sum at the end.
- It is lent against the exit. A commercial mortgage lender asks whether the rent or profits cover the repayments. A bridging lender asks how the whole loan will be repaid at the end, and how sure that plan is.
The security is usually commercial or semi-commercial property: shops, offices, industrial units, warehouses, pubs, hotels, care homes, land and mixed-use buildings such as a shop with a flat above. Lenders also lend against residential investment property, and some take a charge over a second property as additional security.
| Commercial bridging loan | Commercial mortgage | Development finance | |
|---|---|---|---|
| Typical term | 3 to 18 months | 5 to 25 years, often with a fixed rate for 2 to 5 | The build period plus a sales period, often 12 to 24 months |
| How the rate is quoted | Per month | Per year | Per month or per year |
| Monthly payments | Usually none. Interest is retained or rolled up | Capital and interest, or interest only | Usually none. Interest is rolled up |
| What the lender tests | The property value and the exit | Rent or profit cover, loan to value and the business | The scheme, the build cost, the end value and the developer |
| Speed | Days to a few weeks | Often 6 to 12 weeks or more | Weeks to months |
| Best for | Speed, auctions, unmortgageable property and short gaps | Owning or holding property for the long term | New build and major conversions |
Our guide to commercial loans sets bridging alongside every other kind of business borrowing. If you already own the building and want a better long-term deal, our commercial remortgage guide is the better starting point.
When businesses use bridging finance
Bridging is expensive by the year, so it earns its place when speed or flexibility is worth more than the extra interest. These are the situations where it is most often used.
- Buying at auction. At a traditional auction the buyer exchanges contracts on the fall of the hammer and must complete by the date in the special conditions or, under the Common Auction Conditions, 20 business days after the auction if no date is set. A commercial mortgage rarely completes that quickly, and losing the deposit is the cost of missing it.
- A purchase that cannot wait. A seller wants a quick completion, a below-value opportunity is available for a short time, or a long-term lender has pulled out late.
- Property a mortgage lender will not fund yet. An empty building, one with a short lease, a property without a working kitchen or heating, or one that needs refurbishment before it can be let. Bridging funds the purchase and the improvement period, and a commercial mortgage takes over once the building is let or trading.
- Change of use and planning. Buying a building or site while planning permission or a change of use is sought, then selling or refinancing at the higher value.
- Buying before selling. A business moving premises buys the new building before the old one is sold, and the sale repays the bridge.
- A loan that is ending. A commercial mortgage or development loan has reached its end date and the long-term refinance is not ready. A bridge repays the old lender and buys time.
- Capital for the business. Releasing equity from property quickly to fund a stock purchase, a business acquisition, a tax bill or a short-term opportunity, with a clear plan to repay from a sale, a refinance or incoming funds.
The mix moves from quarter to quarter. In the Bridging Trends survey for the second quarter of 2026, investment property purchases and residential chain breaks were each 18% of loans, auction purchases 14%, heavy refurbishment 10% and business funding 9%. Contributors lent £173.1 million in the quarter, and the average loan to value was 55%.
When bridging is the wrong tool
- When there is no realistic way to repay the whole loan within the term. Hope is not an exit.
- When a commercial mortgage could complete in time. If you have three months, a long-term lender may be cheaper by thousands.
- When the need is ongoing working capital. A bridge is a one-off sum, repaid in one go. An overdraft, revolving facility or invoice finance suits a recurring cash gap.
- When the margin in the deal is thin. On a short loan, fees and interest can easily absorb the discount or uplift the bridge was meant to capture.
Open and closed, first and second charge
Bridging loans are described by four choices. Each one changes the price and the risk.
| Kind | What it means | Best when | Watch for |
|---|---|---|---|
| Closed bridge | The repayment date is fixed and the exit is already agreed, such as exchanged contracts on a sale or a mortgage offer in place. | The money coming in is certain and only the timing is the problem. | If the exit is late, extension and default terms apply. Usually the cheaper option. |
| Open bridge | There is a maximum term, often 12 to 18 months, but no fixed repayment date. | The plan is clear, but the date of a sale, letting or refinance is not. | Priced higher. The lender still wants evidence that the exit is realistic. |
| First charge | The bridging lender is the first lender on the property, so it is repaid first from a sale. | The property has no other loan, or the bridge repays the existing one. | Commonly up to about 70% to 75% of value on commercial property, less on land. |
| Second charge | The bridge sits behind an existing mortgage. The first lender is repaid first. | You need capital but do not want to disturb a good existing mortgage. | Higher rates and a lower combined loan to value. The first lender’s consent may be needed. |
Two more labels appear on bridging offers:
- Light and heavy refurbishment. Light refurbishment covers cosmetic and non-structural work, such as a new kitchen, decoration or rewiring, with no planning needed. Heavy refurbishment involves structural work, planning permission or building regulations sign-off. Heavy refurbishment loans often release money in stages as work is done, with a monitoring surveyor checking progress, and are priced closer to development finance.
- Regulated and unregulated. Bridging is regulated by the Financial Conduct Authority when it is a loan to an individual or trustees secured on a home they or their family live in, or will live in. A bridge to a limited company on commercial property is unregulated. More on this in the regulation section below.
What a commercial bridging loan costs
A bridging loan has two kinds of cost: interest charged by the month, and fees charged once. On a short loan the fees matter as much as the rate, so compare offers on the total in pounds.
How bridging interest works
Rates are quoted per month. Across the market, the Bridging Trends average was 0.81% a month in the second quarter of 2026, down from 0.82% in the first. Rates on individual commercial loans commonly run from about 0.6% to 1.5% a month. Lower loan to value, a closed bridge, an easy property and an experienced borrower get the lower end. Land, heavy refurbishment, second charges, open bridges and unusual buildings sit higher. For context, the Bank of England’s Bank Rate has been 3.75% since December 2025.
There are three ways to pay the interest, and they change how much cash you receive:
| Method | How it works | Effect |
|---|---|---|
| Retained | The lender holds back the interest for an agreed number of months from the loan on day one. | You receive less cash, but nothing is paid monthly. Unused interest is usually credited back if you repay early, subject to any minimum term. |
| Rolled up | Interest is added to the balance each month and paid at the end. | Nothing paid monthly. Interest may compound, so you pay interest on interest. |
| Serviced | You pay the interest each month, as with an interest-only mortgage. | You receive more of the loan, but you need income to pay it. Usually the cheapest overall. |
Many loans combine them, for example retaining six months of interest and then servicing it. Check whether interest is charged on the gross loan, including retained interest and fees, or on the money actually drawn. Most bridging lenders charge on the gross loan.
Monthly rate to annual rate
Multiplying a monthly rate by 12 gives a rough annual figure: 0.85% a month is 10.2% a year. If interest compounds monthly, the true annual cost is higher, about 10.7%. Neither includes fees. The table shows the interest alone on each £100,000 borrowed.
| Monthly rate | 3 months | 6 months | 9 months | 12 months | Annual, compounded |
|---|---|---|---|---|---|
| 0.55% | £1,650 | £3,300 | £4,950 | £6,600 | 6.8% |
| 0.65% | £1,950 | £3,900 | £5,850 | £7,800 | 8.1% |
| 0.75% | £2,250 | £4,500 | £6,750 | £9,000 | 9.4% |
| 0.85% | £2,550 | £5,100 | £7,650 | £10,200 | 10.7% |
| 1.00% | £3,000 | £6,000 | £9,000 | £12,000 | 12.7% |
| 1.25% | £3,750 | £7,500 | £11,250 | £15,000 | 16.1% |
Interest is shown as simple monthly interest on £100,000. Rolled-up interest that compounds costs slightly more: on £350,000 at 0.85% for seven months, about £21,360 compounded against £20,825 simple.
The fees
| Fee | Typical level | Notes |
|---|---|---|
| Arrangement or facility fee | Commonly 1% to 2% of the loan | Usually deducted from the loan on day one, so you pay interest on it. |
| Exit fee | Nothing to about 1% of the loan | Charged on repayment. Many lenders now charge none. Check whether it is a percentage of the loan or of the sale price. |
| Valuation fee | From about £1,000 for a simple building, much more for larger or specialist property | Paid upfront to the lender’s surveyor, even if the loan does not go ahead. |
| Lender’s legal fees | Often £1,500 to £5,000 or more | In commercial lending the borrower pays the lender’s solicitor as well as its own. |
| Your legal fees | Often £1,500 to £5,000 or more | Higher for leasehold titles, tenanted buildings, auction packs with problems or several properties. |
| Broker fee | Nothing to about 1% to 2% of the loan | Ask how a broker is paid, including any commission from the lender. |
| Monitoring surveyor | Charged per visit | On refurbishment loans where money is released in stages. |
| Extension fee | Often around 1% of the loan | If the lender agrees to extend the term. Higher interest may apply too. |
| Default interest | Often an extra 1% to 2% a month or more | Charged if the loan is not repaid on time or the terms are broken. The single most important figure to check. |
| Registration fees | £14 online at Companies House, plus the Land Registry fee | A company must register a charge within 21 days of it being created. |
Two clauses are easy to miss. A minimum interest period, often one to three months, means you pay that much interest even if you repay in a week. And an early repayment clause on retained interest says whether unused interest comes back to you if you repay early. Most lenders credit it back, but not all.
How much you can borrow, and the cash you need
Bridging lenders size the loan mainly on the value of the security, expressed as a loan to value. Typical maximums on a first charge are about 70% to 75% for commercial and semi-commercial property, often 50% to 65% for land without planning, and lower for unusual buildings. Lenders use the lower of the purchase price and their valuer’s figure, and some lend on a 90 or 180 day sale value rather than the full market value.
The figure that matters is not the gross loan but the net loan: the cash you actually receive. Retained interest and the arrangement fee come out of the gross loan before it reaches you.
Worked example: buying a warehouse at auction
A trading company buys a vacant warehouse at auction for £500,000. It needs about £60,000 of light refurbishment before it can be let, and completion is due in four weeks. A bridging lender offers a 12-month loan at 70% loan to value at 0.85% a month, with 12 months of interest retained and a 2% arrangement fee. All figures are illustrations, not quotes.
- Gross loan: 70% of £500,000 = £350,000.
- Interest: £350,000 × 0.85% = £2,975 a month. Twelve months retained = £35,700.
- Arrangement fee: 2% of £350,000 = £7,000.
- Net loan paid out on completion: £350,000 − £35,700 − £7,000 = £307,300.
The cash the company needs on completion is the price, plus Stamp Duty Land Tax at non-residential rates of £14,500 (nothing on the first £150,000, 2% to £250,000 and 5% above), valuation of £2,500, the lender’s legal fees of £3,000 and its own of £4,000, less the net loan. That is about £216,700, plus the £60,000 refurbishment, so about £276,700 in all. A buyer who plans with the gross loan of £350,000 would be about £42,700 short on completion day.
A lender may lend more if it can take a charge over a second property, which reduces the loan to value across both. Some refurbishment lenders also fund part of the works, releasing it in stages against the surveyor’s reports. Our guide to how much a business can borrow explains loan to value and the other sizing tests in more detail.
The exit: how the bridge is repaid
Every bridging lender asks the same question first: how will this loan be repaid, and by when? The answer is the exit, and it is worth more to the lender than your accounts. There are three main exits.
- Refinance. A commercial mortgage, buy-to-let mortgage or other long-term loan repays the bridge, usually once a property has been improved, let or is trading. The lender will want to see that the property and business are likely to meet the refinance lender’s tests, and may ask for a mortgage agreement in principle.
- Sale. The property, or another asset, is sold and the proceeds repay the loan. The lender will want a realistic sale price and timescale, and evidence such as agent valuations or comparable sales.
- Incoming funds. Money due to the business, such as a confirmed contract payment, an investment or the proceeds of another sale. The more certain the money, the closer the bridge is to being closed.
Worked example: the exit on time, and late
The same company refurbishes the warehouse and lets it to a logistics firm at £45,000 a year. Seven months after buying, the warehouse is valued at £620,000.
- The refinance. A commercial mortgage lender offers up to 70% of value, £434,000, provided the rent covers the interest at least 1.4 times at 6.5%. Interest on £434,000 at 6.5% is about £28,210 a year, and the rent covers it about 1.6 times, so the full £434,000 is available. It repays the £350,000 bridge and releases about £84,000 before mortgage costs.
- What the bridge cost. Seven months of interest at £2,975 is £20,825. The other £14,875 of retained interest is credited back on repayment. Add the arrangement fee, valuation and the lender’s legal fees and the bridge cost about £33,325, or about 9.5% of the loan for seven months of borrowing. That is about 16% a year once fees are counted, against the 10.2% suggested by the monthly rate alone.
- The exit six months late. If the letting takes six months longer, the refinance lands in month 13, a month after the bridge ends. Six more months of interest is £17,850 and a 1% extension fee is £3,500: about £21,350 more. If the lender will not extend, default interest of an extra 1% a month would add another £3,500 for every month over, and the lender could appoint a receiver to sell the building.
The bridge still made sense: the company bought a building it could not otherwise have bought in time, and added value worth more than the cost. But the late case is why the term should include a buffer.
How to make the exit credible
- Build in time. Ask for a term at least three to six months longer than your plan needs. A longer term usually costs little if unused interest is credited back on early repayment.
- Test the refinance now. Check the refinance lender’s loan to value and rent or profit cover tests against cautious figures, not the best case. Use the commercial mortgage calculator to check the long-term repayment, and our guide to how to get a commercial mortgage for what lenders look for.
- Price the sale cautiously. Use the lower end of agent figures and allow for agent and legal fees on the sale.
- Have a second exit. If the refinance falls short, could you sell? If the sale is slow, would a lender refinance? A fallback is the difference between an extension and a default.
- Talk to the lender early. If the exit is slipping, ask about an extension two or three months before the end date, not in the last week.
What bridging lenders look at
Bridging lenders take a different view from banks. The property and the exit come first. Trading history and profits matter less than for a term loan, which is why bridging is available to newer companies and for buildings a mortgage lender would decline. Expect checks on the following.
| Area | What they check | How to prepare |
|---|---|---|
| The security | Value, condition, title, tenure, use, location and how saleable it is. Lenders appoint a RICS valuer. | Have the legal pack, leases and any surveys ready. For auctions, ask your solicitor to read the pack before you bid. |
| The exit | How and when the loan will be repaid, and how likely that is. | Agent valuations, a mortgage agreement in principle, sale contracts or confirmation of funds. |
| The borrower | Who owns and runs the company, its credit file, any county court judgments, insolvency history and experience with similar projects. | Explain past credit problems upfront. For refurbishment, show past projects and a costed schedule of works. |
| The plan for works | Scope, budget, contingency, contractors and whether planning or building regulations sign-off is needed. | A schedule of works with quotes and a contingency of 10% to 15%. |
| Your contribution | Where the deposit and costs are coming from. | Bank statements showing the funds, and evidence of their source. |
| Guarantees | Most lenders to companies ask the directors or shareholders for a personal guarantee. | Read our guide to personal guarantees before agreeing to one. |
Many property investors borrow through a special purpose vehicle, a limited company set up only to hold property. Lenders are used to this, and will usually want guarantees from the people behind it. A trading company buying its own premises can borrow in its own name.
How to get a commercial bridging loan, step by step
Bridging is fast because the checks are narrower, not because they are skipped. The Bridging Trends average was 46 days from application to completion in the second quarter of 2026, down from 53 days in the first. Simple first charge loans with a ready legal pack can complete in one to three weeks. Most delays come from the valuation and the legal work, not the lender’s decision.
| Step | What happens | Typical time |
|---|---|---|
| 1. Work out the numbers | Price, costs, the net loan you need and the exit, with cautious figures. | A day or two |
| 2. Get terms | Lenders or a broker give indicative terms: rate, loan to value, fees, term and interest method. | 1 to 3 days |
| 3. Accept terms and pay for the valuation | The lender instructs a valuer. Your solicitor starts work. | Instruction in days |
| 4. Valuation | Inspection and report. Specialist or tenanted buildings take longer. | 3 to 14 days |
| 5. Underwriting and offer | The lender checks the borrower, the exit and the valuation, then issues a formal offer or facility letter. | 2 to 7 days |
| 6. Legal work | Title, searches, the charge, any guarantees and any first lender’s consent. Both sides’ solicitors must agree. | 1 to 4 weeks |
| 7. Completion | The lender sends the net loan to your solicitor and the purchase or refinance completes. | On the agreed day |
For an auction, do steps one and two before you bid, and ideally get a valuation booked as soon as the catalogue is out. Many lenders accept a pre-auction application and can complete within the 20 business days most auctions allow, but only if the legal pack is clean. Some lenders will not insure the title on a property with missing planning or building regulations documents, and indemnity insurance may be needed.
Risks and common mistakes
- Planning with the gross loan. Retained interest and fees come off the loan before you receive it. Work out the net loan first, as in our example above.
- An exit that depends on everything going right. Refurbishments overrun, tenants take time to find and sales fall through. Allow for the slower case.
- Too short a term. A six-month bridge on a twelve-month plan saves nothing if unused interest is credited back, and costs an extension fee if it is not enough.
- Ignoring default interest. It is the price of the worst case. Compare it across offers alongside the headline rate.
- Comparing monthly rates alone. A lower rate with a 2% fee and a 1% exit fee can cost more than a higher rate with neither. Compare the total in pounds over the period you expect to borrow, as our guide to comparing business loans explains.
- A thin deal. If the profit or the saving depends on the bridge being repaid on time, a delay can wipe it out.
- Not reading the guarantee. If the property sells for less than the debt, a personal guarantee can make the directors liable for the shortfall.
- Dealing with unauthorised firms for regulated loans. If the loan is regulated, the lender and any broker must be authorised. Check the FCA Register.
The biggest risk is losing the property. A bridging loan is secured, and if it is not repaid the lender can take possession or appoint a receiver to sell, with the costs added to the debt. Our guide to secured vs unsecured business loans explains what security means in practice.
Alternatives to a bridging loan
Bridging is the right tool when time or the condition of the property rules out cheaper finance. If neither applies, compare these first.
| Alternative | Suits | Compared with bridging |
|---|---|---|
| Commercial mortgage | A let or trading building, bought with time to arrange finance. | Much lower annual rate and monthly repayments, but slower and stricter on the property and the business. |
| Development finance | New build, conversions and heavy structural work. | Funds most of the build cost in stages. Similar or higher monthly rates and monitoring fees. |
| Further advance or second charge loan | Releasing capital from property you already own, without disturbing the existing mortgage. | Can be cheaper and longer than a bridge. Our commercial remortgage guide compares the options. |
| Secured business loan | A business need repaid from trading over several years. | Monthly repayments from profits rather than one lump sum at the end. |
| Asset finance or refinance | Equipment and vehicles, or releasing cash from those you own. | Spreads the cost over the asset’s working life. |
| Sale and leaseback | Releasing all the equity in premises the business occupies. | No loan to repay, but you give up the building and take on a long lease. |
| Equity or a joint venture | Projects where the upside is large and uncertain. | No interest, but you share the profit and some control. |
Is commercial bridging regulated?
Usually not. A bridging loan to a limited company, or for business purposes on commercial property, is generally outside Financial Conduct Authority regulation. The facility letter, the charge and any personal guarantee are your main protection, so have a solicitor go through them.
- When bridging is regulated. A loan to an individual or trustees, secured by a first charge on property in the UK, is a regulated mortgage contract if at least 40% of the property is used, or intended to be used, as a home by the borrower or a close family member. A semi-commercial building with a flat the owner lives in can fall within this. The regulated share of the bridging market rose to 48% in the second quarter of 2026, so check which kind of loan you are being offered.
- Voluntary codes. Many bridging lenders are members of the Association of Short Term Lenders and follow its code of conduct. Many banks follow the Lending Standards Board’s Standards of Lending Practice for business customers.
- Complaints. Micro-enterprises and many small businesses can take a complaint about a lender to the Financial Ombudsman Service, depending on the lender and the activity.
Where Business Loan Advice fits
We are not a lender and we do not give personal advice. We are preparing a service that will introduce UK limited companies directly to lenders, including for commercial property finance. No lenders are confirmed yet, so we cannot currently obtain quotes or make introductions. You will not pay us a fee. If a lender pays us commission after the service launches, we will tell you before asking your permission to refer you. The service will exclude loans secured on residential property, so mixed-use buildings with flats and bridges secured on a home fall outside it.
In the meantime, the commercial mortgage calculator and these guides are free to use with no sign-up. If your limited company is planning a property purchase or refinance, you can register its interest and we will contact you about the service launch. Read how we are paid for the details.
Common questions
What is a commercial bridging loan?
A short-term loan secured on commercial or semi-commercial property, usually for 3 to 18 months. It is used to buy or refinance property quickly, or to fund a building a mortgage lender will not yet lend on, and is repaid in one sum from a sale or a long-term loan.
How much does a commercial bridging loan cost?
Interest commonly runs from about 0.6% to 1.5% a month, and the Bridging Trends average was 0.81% a month in the second quarter of 2026. On top come an arrangement fee of around 1% to 2%, valuation and legal fees for both sides, and sometimes an exit fee. In our £350,000 example, seven months of borrowing cost about £33,325 in all.
How is bridging loan interest calculated?
As a percentage of the loan each month. At 0.85% a month, £350,000 costs £2,975 a month. Interest is usually retained from the loan at the start or rolled up and paid at the end, rather than paid monthly. Rolled-up interest may compound.
How much can I borrow with a commercial bridging loan?
Commonly up to about 70% to 75% of the property’s value on a first charge, less for land or unusual buildings. The cash you receive is lower, because retained interest and the arrangement fee are deducted from the loan. Extra security can increase the amount.
How quickly can a bridging loan complete?
Simple cases can complete in one to three weeks. The Bridging Trends average was 46 days in the second quarter of 2026. The valuation and legal work usually set the pace, so have the legal pack and your solicitor ready early.
What is an exit strategy for a bridging loan?
Your plan to repay the whole loan at the end of the term, usually by selling the property or refinancing onto a commercial mortgage. Lenders want evidence, such as agent valuations or a mortgage agreement in principle, and prefer a fallback plan as well.
What happens if I cannot repay a bridging loan on time?
Speak to the lender early. It may agree an extension, usually for a fee of around 1% and continued interest. Without one, default interest applies and the lender can take possession or appoint a receiver to sell the property, with the costs added to the debt.
What is the difference between an open and closed bridging loan?
A closed bridge has a fixed repayment date and an agreed exit, such as an exchanged sale. An open bridge has a maximum term but no fixed date. Closed bridges are usually cheaper because the lender’s risk is lower.
Can I get a bridging loan for an auction purchase?
Yes. Auctions are one of the most common uses, because completion is often due 20 business days after the sale. Speak to a lender and book a valuation before the auction, and have your solicitor check the legal pack before you bid.
Can a new company get a commercial bridging loan?
Often, yes. Bridging lenders focus on the property and the exit more than trading history, so a newly formed company or special purpose vehicle can borrow. The directors will usually be asked for personal guarantees.
Do bridging loans have early repayment charges?
Usually not in the way mortgages do, but many have a minimum interest period of one to three months, and some have an exit fee. If interest is retained, check that unused interest is credited back when you repay early.
Is a commercial bridging loan regulated by the FCA?
Usually not when the borrower is a company or the property is commercial. A bridge to an individual or trustees secured on a property at least 40% used as their own home, or a close family member’s, is a regulated mortgage contract.
Is bridging finance more expensive than a commercial mortgage?
Yes, by the year. A rate of 0.85% a month is about 10.2% a year before fees, against annual rates on many commercial mortgages that are several points lower. It can still be the cheaper route overall if it secures a purchase or adds value a mortgage could not.
Mortgage Solutions: Bridging Trends, second quarter of 2026, published 25 August 2026
Bank of England: Bank Rate, 3.75% after the 17 September 2026 decision
GOV.UK: Stamp Duty Land Tax, non-residential and mixed-use rates
Common Auction Conditions, 4th edition: agreed completion date
GOV.UK: register a charge for a limited company
HM Land Registry: registration services fees
FCA Handbook PERG 4.4: what is a regulated mortgage contract
FCA Register: check a firm’s authorisation
Lending Standards Board: the Standards of Lending Practice
Financial Ombudsman Service: who can complain
Rates, tax bands and lender criteria change. Confirm the current details with the lender, your solicitor or your accountant before relying on them.