How Does Bridging Finance Work?
Bridging finance is a short-term secured loan designed to provide fast access to capital, typically for property-related transactions. The loan is secured against property and is intended to be repaid within a short period — usually 1 to 18 months — once a longer-term funding solution is in place or the underlying asset is sold.
As a credit broker, not a lender, Balanced Funding Solutions searches across our panel of bridging lenders to find the most competitive terms. We handle the introductions, paperwork, and lender negotiations, and can often secure indicative terms the same day.
“Speed is everything with bridging finance. Whether it is an auction purchase with a 28-day deadline or a chain break that needs to happen this week, the right lender and a broker who knows the process can make all the difference.”
Types of Bridging Finance
Bridging loans come in several forms depending on your situation. The right option depends on the property type, the amount needed, and your exit strategy.
A loan with a confirmed exit date — for example, you have exchanged contracts on a sale or have a mortgage offer in place. Lower rates because the lender has certainty on repayment.
A loan without a fixed repayment date, though you will have a defined exit strategy. Rates are slightly higher to reflect the additional flexibility, but the loan can be repaid at any time without penalty.
Finance for purchasing and refurbishing a property before selling or refinancing onto a mortgage. Funds can be drawn down in stages as work progresses.
Pre-arranged bridging finance so you can bid at auction with confidence. Completion within the standard 28-day window. Agreement in principle can often be arranged before the auction.
Quick Comparison
A side-by-side look at how the main options compare on the factors that matter most.
| Feature | Closed Bridge | Open Bridge | Refurbishment | Auction Finance |
|---|---|---|---|---|
| Exit strategy | Confirmed date | Planned but flexible | Sale or refinance | Sale or refinance |
| Interest rates | Lower | Higher | Medium-higher | Medium |
| Typical term | 1-6 months | 1-12 months | 6-18 months | 1-12 months |
| Drawdown | Single | Single | Staged | Single |
| Speed | Fast | Fast | Medium | Very fast |
| Best for | Chain breaks with confirmed sale | Uncertain timelines | Buy-refurbish-sell/let | Auction purchases |
Closed Bridge
Open Bridge
Refurbishment
Auction Finance
Who Can Apply?
Bridging finance is available to individuals and businesses. While each lender has its own criteria, the general requirements are:
- Property in England, Wales, or Scotland to use as security
- A clear and realistic exit strategy (sale, refinance, or other)
- Sufficient equity or deposit (most lenders offer up to 70-75% LTV)
- Solicitor instructed and ready to act
- No undisclosed charges on the security property
Bridging finance can work alongside other forms of borrowing. If you have complex circumstances or an unusual property type, it is still worth speaking to us — our panel includes specialist lenders who consider non-standard situations.
“The key to a smooth bridging transaction is preparation. If you come to us before you need the funds, we can have everything lined up so that when the opportunity arises, we can move fast.”
How It Works
Arranging bridging finance through Balanced Funding Solutions is straightforward. Here is what to expect at each stage.
Get in Touch
Tell us how much you need and what the finance is for. Online form, phone, or email.
We Search
We compare options across our lender panel for your budget and credit profile.
Your Options
Full transparency on rates, terms, and fees — no obligation to proceed.
Completion
We handle the paperwork. Funds typically released within 24–48 hours.
Bridging Finance Calculator
Estimate your monthly interest cost. Adjust the figures to match your requirements.
For illustration purposes only. This calculator provides an estimate based on the figures you enter. Your actual rate will depend on your individual circumstances, credit profile, and the lender’s criteria. Balanced Funding Solutions is a credit broker, not a lender.
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Frequently Asked Questions
Get Your Bridging Finance Quote Today
No obligation, no impact on your credit score. Tell us what you need and we will do the rest.