Bridging Loans for UK Property Developers
Found the perfect property? Don’t miss out.
Whether it’s a bargain at auction or a project with potential, our fast, flexible bridging loans let you act now while arranging long-term finance.
- Loan from £25k to £5 million +
- Trusted by 500+ UK business owners
- Same day decisions
- Bad credit accepted
- Flexible repayment terms
How We Can Help Your Business With a Bridging Loan
Buy at auction:
Traditional mortgages are too slow for auction deadlines. Bridging loans give you fast, reliable funding.
Find a fixer-upper:
Banks won’t touch properties needing major work. Use a bridging loan to buy and renovate, then refinance later.
Avoid chain delays:
Speed up your purchase with upfront funds. 1 in 5 UK bridging loans help break property chains.
Act fast on deals:
Snap up time-sensitive investments with quick, flexible finance before the opportunity’s gone.
What is a Bridging Loan?
A bridging loan is a form of finance, typically secured against property, that allows you to access funds quickly to purchase assets or to refinance existing assets.
Intended to be a temporary solution to tide you over until longer term funding is in place, bridging loans provide you with the working capital that your business needs, fast, while you’re getting your ducks in a row. Bridging loans typically have a maximum term of 12 months, and are usually either replaced with long-term funding or settled when the property is sold.
How to Apply for a Funding Guru UK Business Loan
1. 60 Second Online Application
Take one minute out of your day to fill out our online application form.
2. Proposal Evaluation
Send in your bridging finance proposal and our experts assess the value and feasibility of your proposed investment.
3. Approval Within 1 Day
We won’t waste your time if it’s not the right fit. Our swift approval process gives you an answer within days.
4. Access Funds to Build Your Property Investment Goals
Once your loan is approved, the secured funds will be accessible to you within days.
Founder and CEO, Funding Guru
Thoughts from Matt
“Bridging finance can provide you with an excellent opportunity to purchase an asset quickly. When you see an opportunity in business you want to seize it there and then. You don’t want to be slowed down because you don’t have ready cash to hand. A bridging loan will give you the funding you need so you don’t miss out.” Matt Haycox Founder and CEO, Funding Guru”
Can I Get a Bridging Loan?
Bridging loans are usually used by those in property investment and development, including buy-to-let schemes, to get quick capital to purchase assets while organising long-term funding. However, a bridging loan can be used for any commercial purpose as long as there is a clear exit strategy.
In other words, – for you to be eligible for a bridging loan, the lender must be confident you have something to sell to clear the loan, or that you can secure permanent funding from another source. Bridging loans aren’t offered by mainstream banks, so alternative finance providers are the way to go.
How Much Can I Borrow with a Bridging Loan?
Funding Guru offers commercial bridging loans of £20,000 to £5 million with fixed and competitive interest rates. Unlike other providers, we have no hidden fees and consider applicants with adverse credit. We make decisions quickly and you could have the funds within days.
What’s Required on a Bridging Loan Application?
When our team at Funding Guru assessi you for a bridging loan, we will require a wide range of financial information and details of the asset you want to use as security for the loan.
Like with any commercial loan, the best way to get accepted for your bridging finance is to have a clear business plan for your application – along with all relevant and current supporting documentation. As a lender, below are the key things we need to know:
- Why do you want the money? Are you flipping a property and need funds fast? Are you waiting for your commercial mortgage to come through? Put together a pitch deck that clearly details your rationale behind applying for funding.
- How long do you want to borrow the funds for? Bridging loans typically last for less than a year. Why are you opting for a fast-turnaround loan as opposed to other secured business loan types?
- How are you going to pay your loan back? Will the loan amount be cleared with the sale of the property? Maybe you have another valuable asset you can put up as collateral. Think about your exit plan before you begin.
- What’s our security that we’ll get our money back if you don’t repay on time? In the worst-case scenario, you need to be prepared for things not going your way. What security can you provide to your lender?
Why Do People Use Bridging Loans?
Bridging loans can be used for a range of commercial purposes, but the most common usage is to break the chain on a property purchase. This enables businesses to seize opportunities without getting held up while their capital is tied up in another asset.
Other common usages of bridging loans include: auction purchases, investment purchases, and buying properties that need extensive refurbishments.
How can I improve my chances of being accepted for a bridging loan?
Bridging loans can feel intimidating. To boost your chances of being accepted for a bridging loan, consider the below:
Pull together all of your relevant documentation
A typical bridging loan application should include annual accounts, management accounts and the last three months of bank statements for your company. It’s your job to outline a clear business case for your loan and to explain why you need to borrow the money.
Give plenty of details about the property to be used as security
Provide as many details about the property to be used as security as possible. This will include general information about the size and condition of the property, sales particulars (such as information related to leases or covenants), and an online link to the property on websites such Rightmove or a previous valuation report.
Clearly detail how the loan will be repaid
Be as clear and detailed as possible on how you plan to repay the loan. You should include:
- Information on another asset sale that will provide capital to clear the loan.
- Evidence from an estate agent showing the property will sell.
- Detail of planned renovations that means you can re-mortgage in the near future.
- Evidence of your business’ cash flow to meet the necessary interest payments.
Speak to our team of expert bridging providers
There are many providers offering bridging loans, and not all are made equal.
Funding Guru specialises in helping businesses from a wide range of sectors all across the UK. We’ve done this countless times before, so it’s unlikely there’s a bridging finance scenario that we can’t draw on our experience to solve. We act as both a lender and a broker, so if we can’t offer you the funds ourselves we will work with you to find the best alternative provider.
Advantage and Disadvantages of Bridging Loans
| Pros of Bridging Loans | Cons of Bridging Loans | |
| Cost & Credit Impact | Fast and flexible – useful for a wide range of businesses and purposes | You may need to pay a higher interest rate and fees if you have a poor credit score |
| Use Case & Security | Reliable solution when buying at auction | May require another property or asset as security |
| Eligibility & Planning | Can help you buy properties that traditional lenders won’t finance | Must clearly outline how the loan will be repaid – including proof of sale or refinance plans |
| Duration & Suitability | Helps break commercial property chains by offering cash up front | Bridging loans are short-term and not suitable for long-term funding |
| Application Requirements | Case-by-case decision-making, even with CCJs or defaults | Requires detailed documentation and property information to support your application |
How Much Does a Bridging Loan Cost?
Depending on the lender, a bridging loan can cost anywhere from 0.5%-2% of the loan amount, plus the fees incurred in arranging the loan. Let’s say you needed to borrow £100,000 for a bridging loan at 1% interest, plus £5,000 in various fees, the total cost for the loan would be £6,000.
Can I get a bridging loan with bad credit?
If you do require bridging finance for poor credit, the good news is that your credit score is less essential than with a traditional mortgage lender. At Funding Guru, we make a decision on a case-by-case basis. We consider funding even if you have CCJs or have defaulted on a loan in the past.
The key to being accepted for a bridging loan is to demonstrate that you have a clear exit plan in place and will be able to repay the loan within the agreed time frame. We may also require other assets as security on your loan, such as another property.
However, it’s important to be aware you may have to pay a higher interest rate and higher fees if you have a poor credit score. Get in touch with us today and we can talk through your options.
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