Knowledge Hub
Plain-English guides to
bridging and development finance.
Straight answers to the questions people ask about bridging and development finance: what it costs, how much you can borrow, how long it takes and what lenders want to see.
Bridging loans
How bridging works, how it compares with other finance and the situations it is used for.
6 minute read How bridging loans work A practical guide to how bridging loans work in the UK: security, loan to value, interest options, terms, exit strategies and what lenders ask to see. Read the guide → 5 minute read Regulated and non-regulated bridging The difference between regulated and non-regulated bridging loans, who counts as close family, the protections that apply and how your enquiry is handled. Read the guide → 4 minute read Bridging loan vs mortgage Bridging loan or mortgage? How they differ on term, cost, speed, property condition and repayment, and when using a bridge first and a mortgage later makes sense. Read the guide → 4 minute read Bridging loan vs development finance Bridging or development finance? How to tell which your project needs, from refurbishments and conversions to ground-up builds, and where the two overlap. Read the guide → 3 minute read Can I get a bridging loan with bad credit? Can you get a bridging loan with bad credit, CCJs, defaults or missed payments? How bridging lenders view adverse credit and what improves your chances. Read the guide → 3 minute read What is a chain break, and how does bridging help? What a property chain break is, how a chain break bridging loan lets you buy before you sell, open and closed bridges, costs, and what lenders need to see. Read the guide → 3 minute read Buying at auction: financing a 28-day completion How to finance an auction purchase with a 28-day completion: auction deposits, preparing a bridging loan before the hammer falls, legal packs and timings. Read the guide → 3 minute read Bridging loans for unmortgageable property What makes a property unmortgageable, from no kitchen to short leases and structural issues, and how bridging finance is used to buy, fix and refinance it. Read the guide → 3 minute read Second charge bridging explained How second charge bridging loans work: borrowing behind an existing mortgage, consent from the first lender, combined loan to value, pricing and typical uses. Read the guide → 3 minute read Can a limited company or SPV get a bridging loan? Can a limited company or SPV get a bridging loan? How lenders assess company borrowers, directors and shareholders, personal guarantees and trading companies. Read the guide → 3 minute read Bridging loans for overseas and expat borrowers Can overseas residents, foreign nationals and UK expats get a UK bridging loan? What lenders check, structures, documents, stamp duty and how to prepare. Read the guide → 4 minute read Bridging loans for business purposes How to use a bridging loan for business purposes: raising capital against property for a purchase, tax bill, stock or cash flow gap, and what lenders need. Read the guide → 3 minute read Light vs heavy refurbishment The difference between light and heavy refurbishment for bridging lenders: structural work, planning, building regulations, works funding and loan sizing. Read the guide → 4 minute read Bridging loan pros and cons: are they a good idea? The advantages and disadvantages of bridging loans, when a bridge makes sense, when it does not, and how to reduce the risks before you apply. Read the guide → 4 minute read Who can get a bridging loan? Bridging loan eligibility: what lenders look for, and whether pensioners, people with no income, first-time investors, foreign nationals and borrowers with adverse credit can apply. Read the guide → 3 minute read Open vs closed bridging loans The difference between open and closed bridging loans, how lenders price each, what evidence they need and which suits your situation. Read the guide → 3 minute read Does a bridging loan affect your credit score or mortgage application? How bridging loans show on your credit file, soft and hard searches, and whether a bridge affects a future mortgage application or refinance. Read the guide → 3 minute read Using several properties as security (cross-charging) How cross-charging, or using more than one property as security, works on a bridging loan: borrowing more, funding a deposit, the risks and how charges are released. Read the guide →
Costs, deposits and borrowing
What bridging and development finance cost, how much you can borrow and how much you need to put in.
5 minute read LTV, LTGDV and loan to cost explained How lenders use LTV, LTGDV and loan to cost to size bridging and development loans, with worked examples showing how gross loans, fees and interest count. Read the guide → 5 minute read Bridging loan costs explained The full cost of a bridging loan explained: interest options, arrangement and exit fees, valuation and legal costs, and how broker fees are disclosed to you. Read the guide → 11 minute read Bridging loan and development finance rates and costs UK 2026 Bridging loan and development finance rates and costs in the UK for 2026: rate ranges, LTV, LTGDV and fees from 83 lenders on our panel, with worked examples. Read the guide → 3 minute read How much does a bridging loan cost? How much a bridging loan costs in the UK: monthly interest, arrangement and exit fees, valuation and legal costs, with a worked example of the total cost. Read the guide → 3 minute read Bridging loan interest rates explained Bridging loan interest rates explained: monthly rates, annual equivalents, and how retained, rolled-up and serviced interest change the cost and net advance. Read the guide → 3 minute read Bridging loan fees: every fee and when you pay it Every bridging loan fee in the order you pay it: valuation, arrangement, legal, broker, exit, extension and redemption fees, and which are added to the loan. Read the guide → 3 minute read How much can I borrow with a bridging loan? How much you can borrow with a bridging loan: maximum loan to value, gross loan vs net advance, additional security, works funding and minimum and maximum sizes. Read the guide → 3 minute read How much deposit do I need for a bridging loan? How much deposit you need for a bridging loan: typical 25% to 30% contributions, why costs and retained interest increase it, and using other property instead. Read the guide → 3 minute read How much deposit do I need for development finance? How much of your own money you need for development finance: loan to cost limits, day-one land advances, typical equity of 10% to 35%, and ways to reduce it. Read the guide → 4 minute read How much does development finance cost? What development finance costs: interest on drawn funds, arrangement and exit fees, monitoring and valuation costs, and how to build them into your appraisal. Read the guide → 3 minute read Stamp duty and bridging loans How stamp duty works when you buy with a bridging loan: when SDLT is due, higher rates for additional dwellings, companies, chain breaks and refunds. Read the guide → 5 minute read Bridging loan examples with worked figures Four illustrative bridging loan examples with worked figures: an auction purchase, a chain break, a refurbishment and a second charge, showing gross loan, net advance and total cost. Read the guide → 5 minute read ROCE and the true cost of development finance How to compare development finance quotes: gross and net loan, retained, rolled and serviced interest, forecast interest on the drawdown curve, true monthly cost and return on capital employed. Read the guide →
Applying and completing
Timescales, documents, valuations, guarantees and choosing who to work with.
3 minute read How long does a bridging loan take to complete? How long a bridging loan takes, from enquiry to funds: typical timescales, each stage of the process, and what speeds a case up or slows it down. Read the guide → 3 minute read What documents do I need for a bridging loan? The documents you need for a bridging loan: identity, property and exit evidence, deposit source, company documents, works schedules and development packs. Read the guide → 3 minute read How lenders value property for bridging loans How bridging lenders value property: RICS valuations, market value, 90-day and 180-day values, desktop valuations, GDV, and what to do after a down valuation. Read the guide → 3 minute read How to choose a bridging lender: broker or go direct? How to choose a bridging lender, what to compare beyond the rate, whether to use a broker or approach lenders yourself, and how to check FCA authorisation. Read the guide → 3 minute read Personal guarantees explained Personal guarantees on bridging and development loans explained: why lenders ask, limited vs unlimited, joint and several liability, legal advice and what to check. Read the guide → 4 minute read The development finance process, step by step The development finance process from finding a site to completion: appraisal, lender search, decision in principle, credit approval, valuation, QS report, legals, drawdowns and exit, with typical timings. Read the guide → 3 minute read Decision in principle (DIP) for bridging and development finance What a decision in principle (DIP) means on a bridging or development loan, how it differs from an indicative quote and a formal offer, what lenders check and how long it lasts. Read the guide → 3 minute read How to spot a bad bridging lender or broker Red flags to watch for when choosing a bridging lender or broker, how to check FCA authorisation, and a checklist to compare offers safely. Read the guide →
Repayment and exits
Planning how a loan is repaid, and what to do if the exit is delayed.
5 minute read Bridging exit strategies How bridging lenders assess exit strategies, from sales to refinance, with the evidence they expect and how to plan a term with enough headroom for delays. Read the guide → 3 minute read What happens if I cannot repay a bridging loan? What happens if you cannot repay a bridging loan on time: default interest, extensions, refinancing, receivers and repossession, and how to act early. Read the guide → 3 minute read Can you extend a bridging loan? Can you extend a bridging loan? How extensions work, typical fees, what lenders ask for, and when refinancing with another lender is the better option. Read the guide → 3 minute read Refinancing a bridging loan onto a commercial mortgage or buy-to-let How to exit a bridging loan by refinancing onto a buy-to-let or commercial mortgage: timing, what the mortgage lender checks, rental cover, valuation and how to avoid a shortfall. Read the guide →
Development finance
Appraisals, GDV, drawdowns, monitoring and structuring a development.
5 minute read What development lenders look for What development finance lenders look for in a scheme: planning, appraisal, professional team, build contract, experience, GDV evidence and a credible exit. Read the guide → 3 minute read How development finance drawdown works How development finance is drawn down: the day-one land advance, staged build releases, monitoring surveyor visits, payment in arrears, interest and retentions. Read the guide → 3 minute read What is a monitoring surveyor? What a monitoring surveyor does on development finance: the initial report, site visits, drawdown certificates, cost to complete and who pays. Read the guide → 3 minute read What is gross development value, and how do you calculate it? Gross development value explained: how to calculate GDV for houses, flats and commercial space, the evidence lenders expect, and how GDV sets your facility. Read the guide → 3 minute read How to write a development appraisal How to write a development appraisal lenders trust: GDV, land and build costs, fees, contingency, finance costs, profit on cost and GDV, and sensitivity testing. Read the guide → 3 minute read Development finance for first-time developers Can a first-time developer get development finance? What lenders expect, how to build a credible team, choosing a first scheme, leverage and preparing your case. Read the guide → 3 minute read Development exit loans explained How development exit loans work: repaying a development facility at practical completion, lower rates, more time to sell, releasing equity and what lenders need. Read the guide → 3 minute read Mezzanine finance and equity explained Mezzanine finance and development equity explained: how they top up senior debt, second charges, inter-creditor deeds, pricing, profit shares and when to use them. Read the guide → 3 minute read Development finance: pros, cons and common mistakes Is development finance risky? The advantages and disadvantages of development finance, and the common appraisal and planning mistakes that cost developers money. Read the guide → 3 minute read The capital stack: types of development finance Types of development finance explained through the capital stack: senior debt, stretch senior, mezzanine, preferred and common equity, joint ventures and peak debt. Read the guide → 2 minute read Setting up an SPV for property development Why development lenders prefer an SPV, how to set one up for a development, SIC codes, shareholdings, personal guarantees and what to agree in a joint venture. Read the guide → 2 minute read Phasing a development: how phased finance works Why developers phase schemes, how phased development finance is structured, how early sales reduce peak debt and what lenders look for. Read the guide →
Planning and land
Planning permission, permitted development and buying land before consent.
3 minute read Permitted development explained Permitted development rights explained: Class MA commercial to residential, prior approval, Article 4 directions and how lenders finance PD schemes. Read the guide → 3 minute read Do I need planning permission for development finance? Do you need planning permission for development finance? Full vs outline consent, reserved matters, pre-commencement conditions, and funding land before planning. Read the guide → 3 minute read Planning gain and using land value as your contribution How planning gain works for developers: buying land before consent, the value uplift when planning is granted, and how lenders may treat it as your equity. Read the guide → 3 minute read Residual land value explained How to calculate residual land value for a development site, with a worked example, the inputs that matter and how lenders and valuers use it. Read the guide → 3 minute read Biodiversity net gain and nutrient neutrality for developers What biodiversity net gain and nutrient neutrality mean for development sites in England, how they affect land value, appraisals and development finance. Read the guide →
Commercial mortgages
Buying commercial property, and the term loans that usually repay a commercial bridge.
4 minute read What is a commercial mortgage? What a commercial mortgage is, who uses one, the property it can be secured on, how it differs from a residential mortgage and a bridging loan, and how it is assessed. Read the guide → 4 minute read How to get a commercial mortgage, step by step How to get a commercial mortgage in the UK, step by step: preparing the case, documents lenders ask for, valuation, legal work, and moving from a bridge onto a term loan. Read the guide → 4 minute read Buying commercial property: the process and what to check A practical guide to buying commercial property in the UK: the process, surveys, VAT and TOGC, stamp duty, leases and tenants, and how the purchase is usually financed. Read the guide → 3 minute read How much deposit do you need for a commercial mortgage? How lenders decide how much deposit you need for a commercial mortgage: loan to value, rental and trading cover, property type, tenants and other ways to make up the contribution. Read the guide → 3 minute read Commercial mortgage rates explained How commercial mortgage rates are set: margins over base rate or SONIA, fixed and variable rates, fees, early repayment charges and what affects the price a lender offers. Read the guide →
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