Short-term property funding built around a defined exit.
“Bridging loan” and “bridging finance” describe the same core structure: a short-term facility secured against property and repaid through a documented sale, refinance or other credible route. Cashbook Finance provides business bridging only, secured on business or investment property. It does not offer regulated bridging loans secured on a home the borrower or a close family member lives in.
Security · time · exit
Workable on these figures
- 01Evidence the security65% loan-to-valueWithin 70%
- 02Allow enough timeExit in Month 9 of 12 months3 months spare
- 03Define the exitRepaid by a documented routeA sale
65% loan-to-value, exit by a sale in month 9 of a 12-month term: all three tests pass on these figures.
Illustrative only: a 70% loan-to-value reference and a three-month margin before the term ends, as our guides recommend. Bridging finance is secured against property.
Check eligibilityStructure first
Three tests determine whether a bridge is workable.
-
Evidence the security
The lender assesses the property, title, proposed charge position and valuation. The available amount is shaped by loan-to-value and the risks in the transaction.
-
Allow enough time
Bridging is designed for a temporary timing gap. Legal work, valuation and evidence still matter; “fast” does not mean undocumented.
-
Define the exit
The repayment route must be credible before completion. Typical exits include a property sale or refinance onto longer-term funding.
Fit and limits
Use a bridge for transition, not permanent uncertainty.
Where a bridging loan may fit
- Auction or purchase deadlines
- Time-sensitive investment purchases and delayed sale proceeds
- Light refurbishment before sale or refinance
- Business capital secured against property
- Temporary refinance while longer-term funding completes
Sounds like your deal? Check eligibility
New to the terms? Bridging finance glossary
Where it usually fails
A bridge is not a substitute for weak affordability, an uncertain valuation or an exit that depends on hope. It is also a poor fit where permanent debt is needed but no realistic refinance route exists.
From enquiry to exit
A simple sequence, with evidence at every stage.
- 1
Initial structure
Before terms
Set out the property, amount required, timing, charge position and intended repayment event.
- 2
Valuation and legal work
Before completion
Confirm access, title information, existing security and the documents needed to support underwriting.
- 3
Completion and repayment
Before repayment
Use the agreed term to reach the documented sale or refinance, with sufficient margin if the timetable moves.
Start an applicationOr work out the costs first.
Operational detail
A practical guide to the full bridge lifecycle
This page focuses on the sequence from initial fit to repayment, while the main product page contains the calculator and current application route. For property transactions in the capital, see our London bridging finance guide.
Before terms Confirm property, purpose, amount, deadline, borrower contribution and exit.
Before completion Complete valuation, legal due diligence and source-of-funds checks.
Before repayment Track the sale or refinance milestones before the contractual term becomes tight.
Which suits you
Is a bridging loan the right tool?
| Your situation | Usually the better fit | Why |
|---|---|---|
| A purchase deadline before a sale or refinance | Bridging loan | Speed with a defined exit |
| Long-term ownership with income | Commercial or buy-to-let mortgage | Cheaper over years |
| Works needed before a mortgage is possible | Refurbishment bridge, then refinance | Fix, then refinance |
| Cash flow gap from unpaid invoices | Invoice finance | No property security needed |
Worked example
A bridging loan, costed.
A business borrows £260,000 against a £400,000 investment property and repays it by refinance in month 8 of a 12-month term.
The exit date drives the cost: plan it with room to spare inside the term.
| Property value | £400,000 |
|---|---|
| Gross loan (65% loan-to-value) | £260,000 |
| Arrangement fee, 1%, from the loan | £2,600 |
| Interest at 1% a month, rolled up, for 8 months | £20,800 |
| Repaid at exit (loan plus interest) | £280,800 |
| Cost before valuation and legal fees | £23,400 |
| If the exit is 3 months late | +£7,800 in interest |
Illustrative: interest at 1% a month, rolled up, and an arrangement fee of 1% of the loan. Valuation and legal costs are extra and quoted per case. Bridging finance is secured against property, which may be repossessed if repayments are not maintained.
Official sources
- Regulated Activities Order 2001, article 61 (regulated mortgage contracts) (opens in a new tab)legislation.gov.uk
- Financial Services Register: Cashbook Finance, FRN 782472 (opens in a new tab)FCA
Official guidance and legislation on the rules this page refers to. They explain the rules in general; take advice on your own position.
How quickly can a bridging loan complete?
Often within days to a couple of weeks, depending on the valuation and legal work.
How much can I borrow?
It depends on the valuation, the property and the exit. Our examples use a 70% reference loan-to-value.
Do I make monthly payments?
Usually not: interest is often rolled up and repaid with the loan at exit.
Do you lend on homes?
No. We provide business bridging on investment and commercial property.
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