This type of interim property finance is especially useful in time-sensitive purchases, such as buying at auction, refinancing quickly, or making urgent refurbishments before selling. Whether you’re upgrading your family home or investing in a buy-to-let, bridging loans offer a flexible solution when traditional mortgages can’t move fast enough.
Bridging
Loans
Bridging loans are a short-term financing option designed to help homebuyers bridge the financial gap between buying a new property and selling their current one. If your property sale falls through, or if there are delays in the property chain, bridging loans for property purchases give you the freedom to move forward without losing the home you want to purchase.
This type of interim property finance is especially useful in time-sensitive purchases, such as buying at auction, refinancing quickly, or making urgent refurbishments before selling. Whether you’re upgrading your family home or investing in a buy-to-let, bridging loans offer a flexible solution when traditional mortgages can’t move fast enough.
How do bridging loans work?
Bridging loans work by providing you with fast funding to complete the purchase of a new property—even if the sale of your existing one hasn’t completed yet.
Here’s how it typically works:
- You take out a regulated bridging loan to buy your new home.
- When your old property sells, you use the proceeds to repay the bridging loan.
- Interest is charged monthly, but in many cases, you won’t make repayments until the end (this is called a retained interest loan).
This setup gives you breathing space and ensures your property purchase stays on track despite delays elsewhere.
Types of bridging loan
There are two main types of bridging loans:
There are two classifications for bridging loans:
At Orchard Mortgage Solutions, we are FCA-authorised and regulated, which means we can arrange both regulated and non-regulated bridging finance—depending on your needs. Whether you’re a homeowner or a property investor, we have access to a wide panel of lenders and can help you find the right bridging solution quickly and efficiently.
Bridging loan interest rates and fees
Interest on bridging loans is usually charged monthly.
- Fixed Interest Rate: The interest stays the same throughout the loan term, making your costs predictable and easy to budget for.
- Variable Interest Rate: The rate can go up or down, usually based on the Bank of England base rate. This may offer savings if rates drop, but could cost more if they rise.
Since bridging loans are short-term, changes in interest rates usually have a limited effect. However, it’s still wise to speak to a qualified broker about the best option for your situation.
In addition to interest, there may be:
- Arrangement fees
- Valuation costs
- Legal fees
These are often added to the loan, reducing the need for upfront payments.
How to get a bridging loan
Bridging loans are not normally offered by high street banks. Instead, they are arranged through specialist mortgage brokers or regulated mortgage advisers.
At Orchard Mortgage Solutions, we offer:
- Tailored advice
- Whole-of-market access
- Fast decisions from reputable lenders
We’ll guide you through the process, including:
- Reviewing your income and affordability
- Obtaining independent property valuations
- Explaining repayment options in plain English
Because every case is unique, we’ll make sure your bridging loan is structured around your timeline and financial goals.
Bridging loan benefits
Key Benefits of a Bridging Loan
With a bridging loan, you don’t have to put your dream move on hold. Instead, you gain financial freedom and peace of mind—without the stress of rushed sales or temporary renting.
Why Choose Orchard Mortgage Solutions?
At Orchard Mortgage Solutions, we are experts in bridging finance, mortgage advice, and property investment funding. We are FCA-authorised and can offer both regulated and non-regulated bridging loans based on your specific needs.
Whether you’re a homeowner looking to avoid delays, or a developer in need of fast capital for your next project, we’ll support you with:
Ready to Move Forward?
If you’re considering a bridging loan or want to understand how it could support your property plans. We’ll help you explore the right lending options with honest, jargon-free advice and rapid response times.
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