Residential Bridging Loan London – Fraser Bond Property Finance Guide

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Fraser Bond – Helping You Secure a Residential Bridging Loan in London

What Is a Residential Bridging Loan?

A residential bridging loan is a short-term property finance product secured against a home or residential property. In London’s competitive housing market, these loans are often used when buyers need funds quickly and traditional mortgages cannot be arranged in time.

Unlike long-term mortgages, residential bridging loans are designed for 3 to 24 months, giving buyers, landlords, and investors the speed and flexibility to secure property while arranging their exit strategy.


When to Use a Residential Bridging Loan in London

Residential bridging finance is commonly used in scenarios such as:

  • Chain Breaks – Buying a new London home before selling an existing property.

  • Auction Purchases – Completing within strict 28-day deadlines.

  • Refurbishment Projects – Funding works that make a property mortgageable before refinancing.

  • Downsizing or Upsizing – Releasing equity while transitioning to a new home.

  • Buy-to-Let Conversions – Acquiring a residential property to be refinanced onto a buy-to-let mortgage.

Fraser Bond advises that residential bridging loans work best when buyers have a clear and achievable exit strategy, such as a property sale or long-term mortgage.


Features of Residential Bridging Loan Lenders in London

Loan Terms and Costs

  • Loan Duration – Typically 3 to 12 months for regulated residential loans.

  • Rates – Usually 0.4% to 1.2% per month, depending on loan-to-value (LTV), property type, and borrower profile.

  • Arrangement Fees – Around 1% to 2% of the loan value.

  • Exit Fees – Sometimes charged, usually around 1%.

  • Maximum LTV – Up to 70–75% on prime London residential property.

Benefits

  • Speed of Completion – Funds can be accessed in days.

  • Flexibility – Available for standard and non-standard properties.

  • Opportunity Access – Allows buyers to secure homes in London’s competitive market.

Risks

  • Higher Borrowing Costs – Interest and fees are higher than mortgages.

  • Short-Term Solution – Not a replacement for long-term finance.

  • Exit Risk – Sale or refinance delays may result in additional costs.


Fraser Bond – Helping You Secure a Residential Bridging Loan in London

Fraser Bond works with buyers, landlords, and investors to secure the right residential bridging finance for London property transactions:

  • Expert Advisory – Assessing whether bridging finance suits your needs.

  • Lender Access – Introducing clients to trusted residential bridging loan providers.

  • Application Support – Preparing documents and presenting cases to secure fast approval.

  • Exit Strategy Planning – Ensuring repayment through sale or refinancing.

  • Compliance Guidance – Supporting clients with FCA-regulated bridging loans for primary residences.

For tailored advice and access to bridging finance solutions in London, visit FraserBond.com.