Property Development Finance

Bridging finance is a short-term facility that allows you to release funds quickly for any legal purpose. In the event you are looking to refurbish a property, bridging finance offers the flexibility of being able to use the property as security, giving you time to get the refurbishment completed prior to taking out long term finance or selling at a greater value.

If you are looking to complete a ground up build, a self-build mortgage or a development loan would be more suitable. Bridging loans cover any type of property refurbishment, from modernisation to property conversions.

The key aspects of property development finance:

  • Quick short-term finance to complete projects
  • Loan terms up to 18 months (most lenders will cap at 12 months)
  • Retained interest, allowing to you have cash flow available during the project
  • Option to add on additional securities to raise further funding.
  • Up to 85% loan to value of light refurbishment
  • Up to 100% of the cost of works for larger refurbishment projects.

Property development bridging loans operate similarly to other short-term financing solutions. These loans are secured against the value of the property or properties involved in the project.

A bridge loan can be organised within a few working days, and the loan is repaid as a single lump-sum payment after one to 18 months. Increasingly, property developers are turning to bridging loans as a flexible, accessible, and affordable alternative to traditional loans and commercial mortgages.

By securing the right development finance, developers can accelerate project timelines, manage budgets efficiently, and maximise investment returns. Working with an experienced broker ensures access to the most competitive interest rates and terms, helping developers achieve successful and profitable project outcomes.

Some developers opt for a bridging loan as part of their development finance strategy, particularly when purchasing land without planning permission. This approach allows for securing the land first, with the option to refinance onto a development finance facility once planning approval is granted.

For more information or to discuss the potential benefits of property development bridging loans in more detail, contact a member of the team today.

Eligibility for property development Bridging finance is typically established on the basis of two things:

  • Availability of security to cover the total costs of the loan.
  • Evidence of a workable exit strategy for repayment of the facility.

Bridging finance is a more flexible and accessible facility than traditional development finance and is therefore open to new developers with no provable experience or track record.

Total borrowing costs vary from one product and lender to the next, which in all instances is always negotiable.

Examples of this may include administration fees, arrangement fees, completion fees, valuation fees, legal fees, security fees, early repayment fees, and so on.

if all parties during the application process as responsive and all the paperwork is completed as well as requirements being satisfied, the loan can complete in as little as 5 working days. On average it can take 2 to 4 weeks.

Yes, property development Bridging finance is open to applicants with imperfect credit. Your application will be assessed on the basis of its all-round merit, not the usual ‘binary’ exclusion factors like credit scores.

If you have any questions or concerns regarding your credit score or your eligibility for bridging finance, raise them with your broker before your application is submitted.

The amount you can borrow is dependent on the type of works you are looking to complete. With light refurbishment lenders can offer up to 85% loan to value, and on bigger refurbishment projects the lender may offer 100% of the cost of works but this will be provided in drawdowns rather than all upfront.

Whether you are planning ahead or in need of support with an urgent bridging loan application, we can help.

Our experienced team will negotiate on your behalf to ensure you get an unbeatable deal from a top-rated lender. We will also guide you through the alternative options available, should bridging finance prove unsuitable for your requirements.