KIS Finance

A bridging loan is a short-term financing solution lasting up to 12 months, designed to cover the financial gap when purchasing a new property before selling your current home. These loans typically range from £50,000 to £500 million and can be secured against properties in various conditions, whether good or poor.

In comparison to traditional mortgages, bridging loans are considerably quicker to arrange and are less reliant on your income or credit history.

Nowadays, thanks to their flexibility compared to other financing options, bridging loans are increasingly utilised to finance property refurbishment and renovation projects. Their swift arrangement makes them particularly favoured for purchasing properties at auctions, where speed is often crucial.

Bridging Loan Calculator 2026

To ensure our bridging loan calculator delivers the most precise illustrations of the potential costs associated with securing a bridging loan, calculations are based on our most sought-after and frequently arranged loan options.

Bridging Loan Rates & Costs

We partner with a variety of lenders to secure the most competitive deals for our clients.          

Monthly interest rates starting from

0.51% per month - applicable for loans under £1 million

0.46% per month - applicable for loans exceeding £1 million

Bridging loans offer numerous advantages when compared to other forms of financing. When funds are required for a short duration, they often represent the most cost-effective solution for obtaining the necessary capital. Furthermore, bridging loans can be arranged swiftly, feature flexible lending criteria that allow for quick approvals without the need for extensive checks, and can be secured against all types of property, including those that may not meet the criteria of other lenders.

At KIS Finance, we offer complimentary advice on bridging loans and alternative financing options, ensuring you secure the best deal possible.

While short-term financial needs are often met through facilities like bank overdrafts and credit cards, there are instances when substantial sums of money are required for a brief duration.

Bridging loans are specialised financial solutions designed to provide short-term funding (typically over £100,000) for a limited period (ranging from 1 to 12 months). They are traditionally used to 'bridge' the financial gap that arises when properties in a chain are being bought and sold but completion dates cannot be aligned.

A large bridging loan is a short-term finance solution exceeding £1 million, typically arranged for a duration of 1 to 36 months. At the higher end of the market, facilities can reach £250 million or more, although most large bridging loans generally range up to around £25 million.

The maximum loan amount available varies depending on each lender’s criteria and, crucially, the value and type of property, or the combined value of multiple properties, being provided as collateral.

As with any bridging loan, a robust exit strategy is essential. With large bridging loans, lenders scrutinise the proposed exit route particularly closely to ensure there is a clear and credible plan for repaying the loan within the agreed timeframe.

In straightforward terms, securing a large bridging loan is akin to obtaining any other bridging loan, primarily hinging on the value of the security provided and the feasibility of the exit strategy.

While smaller bridging loans may have maximum terms of between 12 and 24 months, larger loans may occasionally necessitate extended terms, up to 36 months, and in some instances up to 60 months. This is designed to allow ample time for significant works to be completed and for the property to be sold or refinanced.

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We facilitate financing for a diverse range of development projects, from constructing a new home adjacent to your existing property, to high-value luxury apartment complexes and substantial hotel developments.

As independent development finance brokers, we can explore the entire market to secure the most competitive interest rates, fees, and terms available.

“We not only diligently strive to source the necessary finance facility to bring your development to fruition, but also aim to secure the most advantageous loan deal to optimise your project's profitability!”

Completing a bridging loan in just 4 working days is undoubtedly impressive.

However, this isn't the most remarkable aspect of this case study.

In addition to a swift completion, the client aimed to maximise the amount of funds available to them.

Bridging loans can be secured against properties in a range of conditions and constructions. Timber properties are particularly favoured in hard-to-reach locations, where the transportation of standard bulky building materials, like bricks, can be both challenging and costly.

Bridging loans can be a valuable solution when you wish to split a title but your existing lender restricts this process.

A client required funding to construct four new houses on a plot that was part of a commercial property they owned. They had successfully secured planning permission for the four new homes. However, the title needed to be divided in order to create four additional titles. Unfortunately, their current commercial mortgage provider was uncooperative, refusing to allow the title split and objecting to the proposed development.

A bridging loan was utilised to settle the existing lender's debt and to provide the necessary funds for constructing the four new properties. Once completed, the new homes could either be sold or potentially refinanced to repay the bridging loan. Additionally, the client had the option to secure another commercial mortgage with a different lender for the commercial property. Remarkably, the sale of just three of the properties would generate sufficient proceeds to clear all outstanding borrowings.

Our client sought financing to acquire two investment properties intended for redevelopment and subsequent sale. The required funds encompassed not only the purchase price but also legal fees, stamp duty, and financing for the redevelopment work. The properties being acquired served as security, alongside a second charge on a care home that our client owned and operated.

Obtaining finance against care homes can be particularly challenging, especially when considering second charges, as many lenders are hesitant to offer loans secured by these assets. Thankfully, we have established relationships with multiple lenders who are willing to finance care homes. Over the past five years, facilitating care home purchases and raising capital secured against them has become one of our specialities.

A client urgently needed a cash injection for their business to settle outstanding bills and other essential expenses to maintain operations. Furthermore, the client chose to capitalise on this opportunity by increasing the loan amount to implement plans for modernising their well-established business.

The bridging loan was secured against a property owned by the client and is set to be repaid from anticipated funds due later in the year from pending long-term contracts.

Our client approached us to secure the funds necessary for purchasing a flat in London. The property in question was situated within a Victorian building that had previously been transformed from a single house into two separate flats. Over the years, many homes along the street had undergone similar conversions, leading to a strong market value for properties that remained single dwelling houses.

This flat was particularly appealing to our client as they already owned the other flat within the building. By acquiring this flat, they would be able to revert the property back into a single house, which would significantly enhance its value.

Additionally, our client required a financing solution that would not only cover the costs associated with the conversion work once the necessary planning permission had been secured but also facilitate the repayment of the buy-to-let mortgage just prior to the commencement of the building work.

Mr Anonymous faced a challenging situation when his property was repossessed due to a series of unfortunate events. After engaging with another broker and paying an administration fee, as well as incurring additional costs with a bridging loan lender for valuation, administration, and legal fees, his application became protracted. Unfortunately, the repossession of the property escalated difficulties, ultimately leading the bridging lender to decline his application.

As pressure mounted from the official receiver poised to auction the property, Mr Anonymous discovered our services.

Our client sought to regain control over his property, enabling him to carry out necessary clearances, urgent repairs, minor improvements, and some decorating. His aim was to sell the property through an agent on his own terms.

We efficiently saved time and money by leveraging the valuation already completed by the previous lender, who had let him down.

Within just a week, our client successfully retrieved his keys after we secured a bridging loan!

We received a request for a short-term facility of approximately £200k to purchase shares. The client required funds urgently to capitalise on an exceptional opportunity.

Our client reached out to us around midday on a Monday. We were able to provide a tailored offer within hours, ensuring that the funds were in the client’s bank account by Wednesday morning.

This meant that less than 48 hours had passed since we received the initial enquiry! In fact, the funds were poised for transfer late on Tuesday; however, we chose to delay the transaction to prevent our client from incurring unnecessary interest charges until they could actively utilise the funds the following morning.

After agreeing to purchase two adjacent commercial properties just outside London, our client approached us for assistance when they were unable to secure funding through a traditional commercial mortgage. This was primarily due to the poor condition of both properties, coupled with the fact that one of them was set to become vacant, leading to budgeting complications.

Determined to proceed with the acquisition, we arranged a bridging loan to facilitate the purchase. The bridging facility was set for a 12-month term, with the flexibility to exit after just 30 days without incurring any penalties.

Within seven months, our client had successfully renovated both properties, secured a new tenant, and finalised lease agreements. Subsequently, a commercial mortgage was obtained, enabling the repayment of the bridging loan.

Our client owned two valuable properties in London: one that they resided in and another that had been left derelict for many years. Both properties were encumbered by mortgages, alongside a substantial bridging loan that was two months overdue. Unfortunately, this loan was obtained from an aggressive bridging company that imposed exorbitant default interest rates once the loan term was exceeded.

The initial bridging loan was secured by our client around 14 months prior, with the intention of renovating and restoring the vacant derelict property, while also modernising their current residence. This ambitious plan aimed to significantly enhance the value of both properties, enabling our client to sell and downsize to a mortgage-free lifestyle.

Regrettably, the client had no prior experience in property restoration and significantly underestimated the costs involved. Additionally, by attempting to work on both properties at the same time, they quickly exhausted their funds without completing either renovation. Their existing bridging lender subsequently declined to provide any further financing.

In many cases, finance needs to be readily available and accessible at short notice.

Recently, there has been a notable rise in bridging loan applications, with funds needed within as little as 48 hours.

This surge is often prompted by last-minute property sale collapses, withdrawals of mortgages or other expected finance facilities, or unexpected personal or business situations. Such circumstances typically result in anticipated funds not being accessible, leading to significant challenges.

In the lead-up to the referendum, numerous property sales were agreed upon, and contracts exchanged, which included ‘Brexit Clauses’. These clauses granted buyers the option to withdraw from their purchase should the vote result in a decision to leave.

In the aftermath of the leave vote, many buyers have exercised this option, resulting in a significant number of sellers unable to complete their purchases—often leaving them in a precarious position, committed to transactions they wish to see through.

Since the United Kingdom made the decision to exit the EU, we have received a surge of enquiries for bridging finance from individuals affected by these ‘Brexit Clauses’. To address this issue, we have been facilitating bridging loans to provide the necessary funds to keep sale chains intact until suitable replacement buyers can be secured.

On a Wednesday evening, we received an urgent request from an applicant seeking a bridging loan of just over £1 million. The facility was needed to replace an existing one that was set to expire on Monday, giving us only three working days to complete the process!

Our client had acquired a terraced house in London with plans for renovation and resale. The renovation work was successfully completed, and a sale had been agreed upon.

However, they faced an unexpected setback when the sale fell through. This predicament was particularly concerning as they had previously secured a financing option that included a 6% penalty for exceeding the term!