Updated October 2026 · Fraser Bond
Development finance · Fraser Bond
Bridging Loans for Property Developers
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Tell us how much you need, what it's for, the property or security involved, your timescale and how you plan to repay. Our team will come back to you about the options.
Costs at a glance
Most bridging interest is rolled up or retained. Add valuation and legal fees.
The guide
Why Developers Use Bridging Loans
For property developers in London and across the UK, access to fast and flexible finance is critical. Traditional development loans and mortgages often take months to arrange, which can mean missing out on opportunities.
Bridging loans for property developers provide immediate short-term funding — typically between 3 and 24 months — allowing developers to secure sites, start works, or refinance while waiting for long-term funding.
When Bridging Loans Support Property Development
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Site Acquisition – Purchasing land or buildings before securing full development finance.
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Planning Gain – Funding while planning permission is obtained.
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Refurbishment Projects – Financing light or heavy works to make a property mortgageable.
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Conversion Projects – Supporting office-to-residential or mixed-use conversions.
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Exit Finance – Covering costs when a development is completed but sales are still pending.
Fraser Bond advises developers that bridging finance is best used as a strategic tool, bridging the gap between opportunity and long-term solutions.
Features of Bridging Loans for Developers
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Loan Term – 3 to 24 months.
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Rates – Typically 0.5% to 1.5% per month, depending on loan-to-value (LTV) and project risk.
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LTV Ratios – Up to 70–75% on acquisition; higher when additional security is offered.
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Repayment – Exit usually via sale of units, refinance into development finance, or a commercial mortgage.
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Flexibility – Available for residential, commercial, or mixed-use development schemes.
Benefits and Risks
Benefits
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Speed – Funding arranged in days rather than months.
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Opportunity Access – Securing sites or buildings before competitors.
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Versatility – Suitable for acquisitions, refurbishments, conversions, and exits.
Risks
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Higher Costs – More expensive than long-term development finance.
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Short-Term Structure – Repayment must be achieved within months.
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Exit Risk – Delays in planning, construction, or sales can impact repayment.
Fraser Bond – Advisory for Property Developers
Fraser Bond works with developers in London to secure and structure bridging loans that unlock opportunities:
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Deal Structuring – Advising on how bridging fits into your development timeline.
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Access to Lenders – Introducing developers to trusted UK bridging providers.
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Application Packaging – Presenting development proposals for fast approvals.
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Exit Strategy Planning – Ensuring repayment through sales or long-term finance.
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Investor Support – Aligning short-term funding with long-term portfolio and compliance goals.
For tailored finance solutions supporting London development projects, explore options at FraserBond.com.
What to have ready
Important: your home or property may be repossessed if you do not keep up repayments on a loan secured on it. Bridging loans secured on a home you or your family live in are regulated and must be arranged by an FCA-authorised firm.
Frequently asked questions
How fast can finance complete?
Bridging can complete in days to weeks, depending on valuation and legal work.
What is an exit route?
How the loan will be repaid, usually by selling or refinancing.
Can Fraser Bond help?
Yes. Send us an enquiry and we'll talk you through the options.
Ready to talk finance?
Tell us what you need and our team will be in touch.
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