Banks and lenders that offer bridging loans

Bridging loans come from specialist lenders rather than traditional high street banks. Most major UK banks—Barclays, HSBC, Lloyds, NatWest—do not offer bridging products directly. Instead, you will find bridging loans through dedicated bridging finance companies, some mortgage brokers who partner with bridging lenders, and a smaller number of building societies and private lenders.

The lenders that do offer bridging loans fall into three main groups: established bridging finance firms that have been in the market for years, newer online lenders, and traditional mortgage lenders that have added bridging as a secondary product. Each group has different speed, cost, and lending criteria. Knowing which type suits your situation—and which lenders actually operate in your circumstances—saves time and money.

Key Takeaways

  • Specialist bridging finance companies, not high street banks, are the primary source of bridging loans in the UK.
  • Established bridging lenders like Shawbrook, Precise Mortgages, and Bridging Finance Direct have been operating for over a decade and typically lend faster than traditional banks.
  • Mortgage brokers can connect you to bridging lenders they work with, but you pay the broker's fee on top of the lender's charges.
  • Bridging loan costs vary widely by lender, property type, and loan-to-value ratio, so comparing quotes from at least three lenders is essential before committing.
  • Some lenders specialise in specific scenarios—buy-to-let bridging, commercial property, or auction purchases—so matching your situation to the right lender matters.

Established bridging finance companies

Shawbrook Bank is one of the largest bridging lenders in the UK and offers loans for residential and buy-to-let purchases, as well as for refinancing existing bridging debt. They typically lend between 50% and 85% of property value depending on the scenario. Shawbrook's underwriting process usually takes 5 to 10 working days once they have received a full application.

Precise Mortgages operates a bridging division that handles residential and commercial bridging. They work with mortgage brokers and direct applicants. Their lending criteria are more flexible than traditional banks on matters like credit history, though they still require proof of exit strategy (how you will repay the loan).

Bridging Finance Direct is a smaller, specialist firm focused on speed. They advertise decisions within 24 to 48 hours for straightforward cases and can fund within 5 working days. They lend on residential property, buy-to-let, and commercial premises, typically up to 80% loan-to-value.

Kensington Mortgages offers bridging loans alongside their mainstream mortgage business. They are known for handling more complex cases—self-employed borrowers, recent credit issues, unusual property types. Their underwriting is slower than pure bridging specialists but their lending criteria are wider.

Online and newer bridging lenders

Several newer platforms have entered the bridging market in the last five years, often marketing faster decisions and online application processes. Lendinvest and Funding Circle both offer bridging products, though Funding Circle focuses more on business bridging than residential. These lenders often use automated initial assessment but still require manual underwriting before approval.

Online lenders typically charge higher interest rates than established firms—sometimes 0.5% to 1% more per annum—because they carry higher default risk on their loan books. However, their speed can justify the cost if you are buying at auction or have a tight completion deadline. Check whether they lend in your region; some online lenders restrict lending to certain postcodes or property types.

Building societies and traditional lenders with bridging products

A handful of building societies offer bridging loans, though not all branches or advisers will mention them. Coventry Building Society and Nationwide Building Society both have bridging products, usually marketed through their mortgage advisers rather than advertised publicly. These tend to be slower than specialist bridging firms—typically 3 to 4 weeks from application to offer—but may offer slightly lower rates if you are an existing member.

Some traditional mortgage lenders, including Santander and Virgin Money, have added bridging loans to their product range in recent years. These are usually available only to existing customers and only for straightforward residential purchases. If you bank with one of these lenders and need a bridging loan, it is worth asking your mortgage adviser whether they offer it, as existing customer rates are sometimes discounted.

How to find and compare bridging lenders

The fastest way to find bridging lenders is through a mortgage broker who specialises in bridging finance. Brokers have relationships with multiple lenders and can submit your case to the ones most likely to approve it, rather than you applying to each separately. However, brokers charge a fee—typically 1% to 2% of the loan amount—and this comes on top of the lender's own fees and interest.

If you apply directly to lenders without a broker, you avoid the broker fee but you do the legwork of contacting lenders, gathering quotes, and comparing terms yourself. Most bridging lenders will provide an indicative quote within 24 hours if you give them basic information: property value, loan amount needed, property type, and your exit strategy. Do not confuse an indicative quote with a formal offer; the formal offer comes after full underwriting and is binding on the lender.

When comparing quotes, look beyond the interest rate. Bridging loans also carry arrangement fees (typically 1% to 3% of the loan), valuation fees (£200 to £500), legal fees (£400 to £800), and exit fees if you repay early. Some lenders roll these into the loan amount; others charge them upfront. A lender with a lower headline rate but higher arrangement fees may cost more overall than a competitor with a higher rate but lower fees.

Lenders for specific bridging scenarios

Auction purchases require speed and certainty. Lenders like Bridging Finance Direct, Shawbrook, and some brokers specialise in auction bridging because they can commit to funding within the 28-day completion window. If you are buying at auction, tell the lender upfront; some have dedicated auction teams and faster approval processes.

Buy-to-let bridging is offered by most bridging lenders, but terms vary. Some lenders require the property to be let within a set period (often 6 months); others do not. If you are bridging to purchase a property that is not yet tenanted, check the lender's requirements on when it must be let and whether they will extend the loan term if it takes longer.

Commercial property bridging is available from Shawbrook, Precise, and several specialist commercial lenders. Commercial loans often have higher interest rates and lower loan-to-value ratios than residential bridging because the exit strategy is less certain. If you are bridging a shop, office, or industrial unit, expect to pay 1% to 2% more in interest than for residential property.

Refinancing existing bridging debt is possible with most lenders, though some charge higher rates for it. If your current bridging loan is coming to the end of its term and your exit strategy has not worked out, lenders like Shawbrook and Kensington will refinance you into a new bridging loan, usually at a higher rate than the original.

What to expect in the bridging application process

Once you have chosen a lender or broker, the application process typically follows this order: initial information gathering (1 to 2 days), property valuation (3 to 7 days), underwriting and decision (3 to 10 days), formal offer (1 day), legal work (5 to 10 days), and funding (1 to 3 days). The total time from application to money in your account is usually 2 to 4 weeks for straightforward cases, though auction bridging can be faster if the lender has already valued the property.

You will need to provide: proof of identity and address, recent bank statements (usually 3 months), proof of your exit strategy (a mortgage offer from your main lender, or evidence of a sale in progress), and details of any existing mortgages or debts. If you are self-employed, expect to provide 2 years of accounts or tax returns. If you have had credit issues, be prepared to explain them in writing.

Frequently Asked Questions

Can I get a bridging loan from my high street bank?

Most high street banks do not offer bridging loans as a standalone product. Barclays, HSBC, Lloyds, and NatWest focus on traditional mortgages. Some building societies and a few traditional lenders like Santander offer bridging, but usually only to existing customers. Your best option is a specialist bridging lender or a mortgage broker who works with them.

What is the difference between a bridging lender and a mortgage broker?

A bridging lender is the company that actually lends you the money. A mortgage broker is an intermediary who connects you to bridging lenders and handles the application on your behalf. Brokers charge a fee (1% to 2% of the loan) but save you time by knowing which lenders will approve your case. You can apply directly to lenders and avoid the broker fee, but you do the legwork yourself.

Do bridging lenders check credit history?

Yes, all bridging lenders carry out a credit check, but they are generally more flexible than traditional banks on credit issues. A missed payment from five years ago is less likely to disqualify you than it would be for a standard mortgage. However, recent defaults or county court judgments will still be a problem. If you have credit concerns, mention them upfront to the lender or broker.

How much does a bridging loan cost?

Bridging loans typically cost 0.5% to 1.5% per month in interest (6% to 18% per year), plus arrangement fees of 1% to 3% of the loan amount, valuation fees, legal fees, and sometimes exit fees. Total cost depends on how long you hold the loan, the lender, and your loan-to-value ratio. A £200,000 bridging loan at 1% per month for 6 months costs roughly £12,000 in interest alone, plus £2,000 to £6,000 in fees.

What happens if I cannot repay the bridging loan on time?

Most bridging loans have a fixed term, usually 3 to 12 months. If you cannot repay by the end of that term, you can ask the lender to extend it, usually for an additional fee and at a higher interest rate. Some lenders will extend automatically; others require you to reapply. If you cannot repay or extend, the lender can take possession of the property and sell it to recover their money, so having a clear exit strategy before you borrow is essential.