Updated October 2026 · Fraser Bond
Property finance · Fraser Bond
Residential Bridging Loan London
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Costs at a glance
Most bridging interest is rolled up or retained. Add valuation and legal fees.
The guide
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:
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Chain Breaks – Buying a new London home before selling an existing property.
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Auction Purchases – Completing within strict 28-day deadlines.
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Refurbishment Projects – Funding works that make a property mortgageable before refinancing.
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Downsizing or Upsizing – Releasing equity while transitioning to a new home.
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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
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Loan Duration – Typically 3 to 12 months for regulated residential loans.
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Rates – Usually 0.4% to 1.2% per month, depending on loan-to-value (LTV), property type, and borrower profile.
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Arrangement Fees – Around 1% to 2% of the loan value.
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Exit Fees – Sometimes charged, usually around 1%.
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Maximum LTV – Up to 70–75% on prime London residential property.
Benefits
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Speed of Completion – Funds can be accessed in days.
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Flexibility – Available for standard and non-standard properties.
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Opportunity Access – Allows buyers to secure homes in London’s competitive market.
Risks
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Higher Borrowing Costs – Interest and fees are higher than mortgages.
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Short-Term Solution – Not a replacement for long-term finance.
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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:
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Expert Advisory – Assessing whether bridging finance suits your needs.
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Lender Access – Introducing clients to trusted residential bridging loan providers.
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Application Support – Preparing documents and presenting cases to secure fast approval.
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Exit Strategy Planning – Ensuring repayment through sale or refinancing.
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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.
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.
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Tell us what you need and our team will be in touch.
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