For investors

Bridging Lenders

Short-term property finance for time-critical acquisitions and exits

Bridging lenders provide short-term capital against property as security — typically 1–18 month terms at higher interest rates than standard finance. Rapideal connects sellers and buyers who need fast bridging finance with lenders who can decide in 24–72 hours and fund within days.

What Bridging Lenders do on Rapideal

Bridging finance is a short-term lending product used where speed is essential and traditional finance is too slow. Bridging lenders lend against property — as first or second charge — at monthly interest rates of 0.75–1.5%. The exit is typically via refinancing to a standard mortgage, sale of the property, or rental income. Terms range from 1 to 18 months.

On Rapideal, bridging lenders serve two distinct seller situations. First, sellers who have a buyer who needs bridging finance to complete — for example, an auction buyer who won a property but needs capital within 28 days. Second, sellers facing a time-critical situation — a repossession hearing, an expiring option on a development site — where bridging finance can create the exit needed to avoid a worse outcome.

Bridging is not a long-term product. The monthly interest costs are significantly higher than a standard mortgage. Any seller or buyer entering a bridging arrangement should have a clear, credible exit plan. Rapideal's specialist team reviews bridging introductions before making them — we do not introduce to bridging unless the situation and exit are clear.

How it works

  1. Your specialist identifies a bridging need — either a buyer who needs bridging to complete, or a seller who needs short-term capital to execute a strategy.
  2. A bridging lender from Rapideal's network is approached with the deal details: property value, loan amount required, term needed, and exit plan.
  3. The lender reviews the deal — typically 24–72 hours for a decision. Valuation arranged within 5 days of offer acceptance.
  4. Loan offer issued, solicitors instructed, funds released — typically within 7–14 days of initial enquiry.
  5. Interest serviced monthly during the term. Exit via refinance, sale, or agreed strategy. Rapideal monitors the bridging arrangement until exit.

Deal types Bridging Lenders look for

Auction finance
28-day auction purchases where standard finance is too slow — buyer needs funds within the competition deadline
Repossession prevention
Short-term capital to prevent a charging order or repossession, creating time to execute a full sale
Chain break bridging
Buyer in a chain who has sold their own property but the chain has broken — bridging covers the gap
Development exit
Developer who has reached the end of their construction finance and needs short-term capital to complete and sell
Lease extension bridging
Capital needed to exercise a lease extension option — the property itself is the security for the bridging loan

Eligibility

Bridging lenders on Rapideal lend against residential and commercial property in England and Wales. Loan-to-value ratios typically max at 65–75% LTV for standard bridging, and 50–60% for regulated bridging (where the borrower lives in the property). Credit history is less relevant — the primary security is the property itself.

Risks to know

  • Monthly interest rates of 0.75–1.5% mean bridging is expensive as a long-term product. A 12-month bridging loan at 1% per month costs 12% per annum — not comparable to mortgage rates.
  • The exit must be credible. If the planned sale or refinance does not complete within the term, the lender can enforce — typically by appointing a receiver or forced sale.
  • Some bridging arrangements involve a first and second charge on the same property. Sellers with existing mortgages must ensure their lender is aware and consents to the bridging arrangement.
  • Bridging lenders are not regulated by the FCA for commercial bridging loans. Retail bridging (where the borrower is an individual and the property is their home) is FCA regulated. Rapideal only introduces commercial bridging where the deal structure is appropriate.

Frequently asked questions

Commercial bridging — where the borrower is a limited company or the property is not the borrower's residence — is not FCA regulated. Retail bridging — where an individual borrows against their home — is FCA regulated. Rapideal's network covers both. We always match the right type of lender to the right deal structure.
Decisions are typically made within 24–72 hours of receiving a complete deal pack. Funds can be released within 7–14 days of initial enquiry. For time-critical situations — repossession hearings, auction deadlines — this speed is the primary value.
Most bridging lenders will negotiate a term extension if the exit is genuinely in progress but running slightly over. Fees apply for extensions. If the exit has failed entirely, the lender can enforce — typically by appointing a receiver to sell the property. This is why Rapideal requires a credible exit plan before introducing a bridging lender.
Unlike standard mortgage lenders, bridging lenders focus primarily on the property as security rather than the borrower's credit history. Bad credit does not automatically disqualify — but the lender will want to understand the circumstances and the exit plan before proceeding.
Arrangement fees of 1–2% of the loan amount are standard. These are typically paid by the borrower at drawdown. Valuation fees, legal fees, and exit fees are additional. Rapideal does not charge the seller or buyer for a bridging introduction — the lender pays Rapideal a referral fee on completion.

Seller situations for this investor type

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