Understand the purpose and security
Bridging finance is short-term borrowing secured against property. It may be considered for a purchase before a sale completes, an auction or a property project. Suitability depends on the property, borrowing needs, costs and repayment plan.
Describe the transaction and the deadline accurately. A bridge is not a guarantee of quick completion or a substitute for checking the legal and property position. Ask whether your proposed loan is regulated and what protections and requirements apply; this depends on the circumstances of the borrowing.
Make the exit plan credible
The exit is how you intend to repay the loan, often through a property sale or longer-term refinancing. Set out the expected amount, timing and evidence behind it. A hoped-for refinance needs to be tested against likely lending and property requirements.
Discuss what happens if the sale price is lower, works take longer or a future mortgage is unavailable. A mortgage illustration or an agreement in principle does not guarantee a refinance. Include contingency funds and ask how a delay would affect the total repayment and your options.
Compare the complete borrowing cost
Request a clear breakdown of interest, arrangement and adviser fees, valuation, legal work and any exit, minimum-interest or extension charges. The interest rate alone does not show the full cost.
Ask whether interest is paid monthly, retained upfront or rolled into the amount owed, where those options are available. Confirm the cash you will actually receive after any deductions, the loan balance and the estimated amount needed to repay it on your planned exit date.
Compare the same loan amount, term and repayment assumptions. If costs are added to the loan, establish whether interest is charged on those costs too.
Prepare the property and project information
- Property address, current value, purchase price and existing secured borrowing.
- How the property is used, its condition and whether anyone will live in it.
- The deposit, available cash and the source of those funds.
- A works budget, permissions and timetable where a project is involved.
- Evidence supporting the sale or refinance exit, plus income information where relevant.
Give the adviser the auction pack or legal documents early when there is a deadline. Your conveyancer should explain the contractual commitment before you bid or exchange. Funding remains subject to the lender’s assessment, valuation and legal work.
Review the terms before committing
Check the repayment date, interest method, security, fees, conditions and what happens if the loan is not repaid on time. Ask your adviser and solicitor to explain any guarantee or additional property security before agreeing to it.
Compare whether a longer-term mortgage, a different purchase timetable or another route is suitable. Keep the exit under review throughout the loan. If the plan changes, speak to the lender and adviser early rather than assuming an extension will be available.
Common questions
Before you take the next step.
Is bridging finance always unregulated?
No. Regulated and non-regulated arrangements exist. The classification depends on the circumstances and must be checked for your loan.
Can a bridge be repaid with a mortgage?
Potentially, but future mortgage acceptance is not guaranteed. The proposed refinance needs a realistic assessment before taking the bridge.
Can completion be guaranteed by a deadline?
No. Lender assessment, valuation, legal work and the transaction itself can affect timing. Do not rely on a promised completion speed.
Your next step
Talk through your plans with MOVA.
Tell us what you want to achieve and what you are unsure about. We will help you understand the next steps and the information needed for your circumstances.
The initial conversation is at no cost. Any applicable adviser fee will be explained and agreed before you proceed.
Related MOVA guides
Keep planning your next step.
General information, not a personal recommendation or legal or tax advice. Lender criteria and availability can change.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or other debt secured on it.
← Back to all guides
