All terms
finance
Bridging loan
Short-term secured lending (typically 1–18 months) used to complete a purchase quickly. Higher rates than mortgages — usually 0.7–1.2% per month plus 1.5–2.5% arrangement.
In simple terms
Expensive but fast finance — the standard tool for auction buyers without cash.
Example
£150,000 bridging loan at 0.95%/month over 6 months = £8,550 interest + £3,000 arrangement = £11,550 total cost.
If you're buying
Get an agreement in principle before bidding. Most lenders need 7–10 days to fund.
If you're selling
Bridging is what makes 28-day completion possible — most auction buyers use it.
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