Regulated Bridging
You could receive your loan in as little as 3 days!
- Borrow from £20,000 to £250,000
- 1 year only
- Bad credit histories considered
- Up to 75% LTV
Representative example: A mortgage of £30,000 payable over 12 months, on a fixed rate of 0.95% per month would require 11 instalments of £0.00 followed by 1 instalment of £37,070.22. The total amount payable would be £37,070.22 and includes, an arrangement fee (£1,099), a broker fee (£1,995) and interest (£3,976.22). The overall cost for comparison is 23.5% APRC representative.
This loan is secured against your property. If you are unable to repay the loan and any associated fees and interest when due, your property may be repossessed and sold to recover the outstanding debt.
What is a bridging loan?
A bridging loan is used when quick access to finance is essential. A bridging loan can provide short-term finance to cover gaps between property transactions or urgent funding needs. One typical scenario is buying a new home before selling your current one.
This type of loan allows you to proceed with the purchase without waiting for the sale of your existing property, helping to reduce stress and avoid missed opportunities.
This product is available as either a first or second charge mortgage, subject to eligibility and our lending criteria.
Exit Strategies
A bridging loan is only as safe as its exit strategy. Lenders need confidence that the loan will be repaid on time, so the way you plan to exit the loan is crucial. For most property sales, the primary exit is the sale itself. If the property is overseas, a secondary exit plan is required to cover any delays or complications with the sale.
How is a bridging loan different to a mortgage?
A bridging loan is a short-term financing solution designed to cover temporary funding gaps, such as buying a new property before selling your existing one or seizing a time-sensitive opportunity. Unlike a traditional mortgage, which is long-term and repaid over typically 15–30 years with regular monthly instalments, a bridging loan is usually repaid in a single lump sum within 12 months.
Approval is typically faster, with lenders focusing on the value of the property rather than your income, and interest rates are higher due to the short-term nature and increased risk. Essentially, a mortgage helps you own a property for the long term, while a bridging loan provides quick, flexible funding to bridge a gap until your permanent financing is in place.
Risks associated with bridging loans
Bridging loans can seem like a lifeline when you need cash fast, but you should be aware of the risks before making any decisions. Bridging loans come with high interest rates and hidden fees that can pile up quickly, and their short repayment schedules leave little room for delays. Because the loan is secured against property, a drop in market value could leave you owing more than your home is worth.
Without a clear exit plan—whether selling, refinancing, or moving to a traditional mortgage— what starts as a temporary solution can spiral into serious financial trouble, damage your credit, or even cost your property. Bridging loans work best for those who know exactly how and when they will repay.
When might a bridging loan be used?
Due to its short-term and flexible nature, a bridging loan can help in situations where timing is critical or funds are temporarily tied up. Common uses include:
- Buying a property at auction
- Buying a property or land quickly
- Property refurbishments and developments
- Investing in the next project before securing sales proceeds from previous projects.
Chain breaks
A bridging loan can be used when purchasing a property that is part of a property chain, meaning that several buyers and sellers are linked together because each person’s ability to complete their purchase depends on someone else completing theirs.
Your purchase could effectively be put on hold by the financial circumstances of third parties. This can create issues if for example:
Scenario 1
You’re all lined up to complete the purchase of your home, and something goes wrong unexpectedly. It could be that the person buying your home pulls out at the last minute and the chain collapses or breaks.
Scenario 2
The seller is waiting for their mortgage to be approved before they can buy their next property, delaying the entire chain. As a result, you can't move into your new home, and your buyers can't move into yours.
Scenario 3
You're buying a new home and selling your current one, but your buyer's property has legal or title issues delaying their purchase. This prevents them from completing, which in turn delays your sale.
Scenario 4
Maybe you’ve found a property you want to buy, but you haven’t sold yours yet. A bridging loan can provide the emergency, short-term finance that you need to purchase the new home, and avoid breaking the chain.
Bridging loans for a property chain break can provide an efficient way to bypass this hurdle and offer you the capital needed to complete the purchase independently of the chain.
Other bridging loan scenarios:
Temporary funding gaps
Example 1:
You’ve found a new property that costs more than the home you’re selling. While the sale of your current home will provide part of the funds, those proceeds won’t be available until completion. A bridging loan can temporarily cover the shortfall so you can move forward with the purchase while waiting for your sale to complete.
Example 2:
You want to buy a property at auction, which requires full payment within a short timeframe (e.g., 28 days). Your mortgage or other funds won’t be ready in time. A bridging loan releases immediate capital to secure the purchase, then refinance once permanent funding is arranged.
Why choose Central Trust?
Fast and Simple Process
You could access funds within days by calling our team directly or enquiring online.
Over 35 Years’ Experience
We are one of the UK's longest established specialist lenders, so you can relax knowing you're dealing with an experienced team.
Authorised and regulated by the FCA
We are committed to responsible lending, clear communications and good customer outcomes throughout the borrowing journey.
Your Loan,
Tailored for You.
Consolidating debt? Paying for a large expense like home improvement or a wedding? We have you covered.
Unlike many other lenders, there is no strict automation to our lending decisions. Your application is assessed by our team, not by a computer.
How it works
Organising your finances can sometimes feel stressful, but we want to make it as easy as possible for you.
In just 3 simple steps you could have the money in your bank account. All you need to do is:
Enquire
Complete our quick and easy online enquiry form. Alternatively, you can speak to an advisor instantly by calling us or starting a live chat.
Share
One of our qualified advisors will call you to discuss your enquiry and work out a monthly payment that meets your needs and circumstances.
Complete
We'll help you complete the paperwork and any other supporting documentation required. Everything can be completed electronically, or on paper if you prefer.
Ready to enquire?
Call an advisor free on:
0800 980 6273
- Friendly UK based advisors
- Enquiring won't affect your credit rating
- Fast turnaround time 7-10 days is possible
- Immediate contact from our advisors
- We are a direct lender
Is it a good idea to get a bridging loan?
Bridging loans can seem like a lifeline when you need cash fast, but you should be aware of the risks before making any decisions. Bridging loans come with high interest rates and hidden fees that can pile up quickly, and their short repayment schedules leave little room for delays. Because the loan is secured against property, a drop in market value could leave you owing more than your home is worth.
What is the criteria to get a bridging loan?
To qualify for a bridging loan with us at Central Trust, the key requirement is a clear exit strategy (such as a sale or refinance) supported by suitable property security, typically up to 75% LTV on a first charge and 70% on a second charge. We take a flexible, case-by-case approach, using tools such as AVMs, instant indicative quotes, e-signatures, and in some cases 24-hour completions with free legals on regulated bridging.
Credit history and income are considered alongside automated affordability and electronic income verification where needed, with scope to accept non-standard income and adverse credit depending on the overall strength of the case. Approval is driven primarily by the security and exit plan rather than traditional credit or income criteria.
What are the disadvantages of a bridging loan?
Without a clear exit plan - whether selling, refinancing, or moving to a traditional mortgage - what starts as a temporary solution can spiral into serious financial trouble, damage your credit, or even cost your property. Bridging loans work best for those who know exactly how and when they will repay.
Can a bridging loan be secured against my property?
Yes. A residential bridging loan is always secured against a property.
- A first charge bridging loan is secured as the main mortgage on the property.
- A second charge bridging loan sits behind an existing mortgage, allowing you to raise additional funds without replacing your current loan.
Are bridging loans more expensive than standard mortgages?
Yes. Bridging loans are designed to be short-term solutions, typically lasting up to 12 months. so they usually have higher monthly interest rates than traditional mortgages.
However, they are designed for speed and flexibility, not long-term borrowing.
