Yes. Many bridging loans allow interest to be rolled up and paid at the end of the term, rather than monthly.
Bridging Loans
Short-term funding to support time-sensitive property transactions
Bridging loans provide fast, flexible finance designed to “bridge” a funding gap where timing is critical. They are most commonly used in property-related situations where funds are required quickly, before longer-term finance is put in place or an asset is sold.
At Bothwick Finance, we arrange tailored bridging loans for UK businesses and property investors, working with specialist lenders to structure facilities that match your timescales, exit strategy, and overall objectives.
What is a bridging loan?
A bridging loan is a short-term, secured loan, typically taken out for a period ranging from a few months up to 12 or 18 months. The loan is secured against property or land and is designed to be repaid through a clear exit strategy, such as:
Because bridging loans are designed for speed and flexibility rather than long-term affordability, they are assessed differently to traditional mortgages.
How bridging finance works
Bridging finance is structured around both the security and the exit plan. The process typically involves:
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Initial discussion
We understand why the funding is needed, how quickly funds are required, and how the loan will be repaid.
2
Property assessment
Lenders assess the value and type of property being used as security.
3
Loan structuring
Terms are agreed based on loan-to-value (LTV), duration, and risk profile.
4
Completion
Funds are released quickly once legal checks are completed.
Bridging loans are often used where traditional lenders cannot move quickly enough or where the property does not yet meet standard lending criteria.
Common uses for bridging loans
Bridging finance can be used in a wide range of scenarios, including:
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Purchasing property at auction
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Securing a property before the sale of another asset
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Funding refurbishment or light development works
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Buying uninhabitable or unmortgageable property
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Bridging delays in long-term funding completion
The flexibility of bridging loans makes them a valuable tool when timing and certainty are more important than long-term pricing.
Key features of bridging loans
Bridging loans differ from traditional property finance in several ways:
- Short-term duration, typically up to 12–18 months
- Interest may be rolled up or serviced monthly
- Higher loan-to-value available in some cases
- Focus on exit strategy rather than income alone
- Secured against residential, commercial, or mixed-use property
Because of their structure, bridging loans should always be used with a clear plan in place.
Who are bridging loans suitable for?
Bridging loans are commonly used by:
- Property investors and developers
- Businesses purchasing or refinancing property
- Companies needing fast access to capital
- Borrowers dealing with complex or non-standard situations
They are particularly suitable where a property transaction would otherwise be lost due to delays or rigid lending criteria.
Why arrange bridging finance through Bothwick Finance?
Bridging finance requires careful structuring and lender selection. Our role is to ensure the loan works as intended and that the risks are clearly understood.
When you work with Bothwick Finance, you benefit from:
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Access to specialist bridging lenders
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Clear explanation of costs, risks, and exit options
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Support throughout the legal and valuation process
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Facilities structured around your timescales
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Honest, practical advice from experienced professionals
We focus on making sure bridging finance is used appropriately and effectively, not as a long-term solution.
Frequently asked questions
Bridging loan FAQs
How quickly can a bridging loan complete?
In some cases, bridging loans can complete in a matter of weeks, depending on valuations and legal work.
Do I need an exit strategy?
Yes. A clear and realistic exit strategy is essential for any bridging loan.
Can interest be rolled up?
What type of property can be used as security?
Security can include residential, commercial, or mixed-use property, subject to lender criteria.
Request a quote
If you are considering bridging finance for a time-sensitive property transaction, we can help you assess whether it is the right solution and structure a suitable facility.
Request a quote today and speak to one of our account managers about bridging loan options available to you.
To enquire about any of products or services, please contact us to speak to a member of staff.