Shortlisting bridging lenders is the starting point for every deal. Here, we explore what to look for when filtering lenders specific scenarios, where shortlisting becomes difficult, and how experienced investors quickly narrow the market to focus on lenders that are actually relevant.
If you’re trying to whittle down borrowing options and work out how to shortlist bridging lenders, the first thing to understand is how much the market narrows once an actual deal is introduced.
While there are hundreds of bridging finance lenders, and thousands of products, a large portion of that market becomes irrelevant as soon as you define:
Therefore you can’t compile a relevant shortlist and make meaningful like-for-like comparisons until you’ve filtered out the lenders who don’t fit.
Identifying that relevant group early, before time is spent discussing terms with lenders who don’t fit your deal, and shortlisting from there is the proper starting point for any bridging loan comparison.
Bridging is highly segmented, and can be more restrictive than borrowers expect. Lenders want to lend, and they want to see deals on their desks - but their appetite shifts based on multiple factors from existing loan books to prevailing market conditions.
Two lenders offering similar bridging loan products can behave completely differently when you introduce specifics like semi-commercial property, vacant commercial space, heavy refurbishments, poor credit history or complex exits.
While some bridging loan lenders have broader market coverage, there are many who fund (and specialise in) specific property types, and have more rigid deal structures and risk tolerance.
The key filters that narrow down the market include:
For example, introduce a tight auction deadline and a number of lenders drop out immediately due to internal processes. Introduce a first-time developer and another handful drop out.
Hence finding relevant lenders before getting down to the nitty-gritty of the loan details is essential.
Typical scenarios where speed is important include auction purchases with fixed completion deadlines, broken chains, or below-market cash-only acquisitions.
How quickly a lender can execute on a deal depends on a variety of factors. The complexity of the deal will naturally have an impact, but leaving that aside and it mostly comes down to how a lender is set up.
Consider:
Funding structure
Lenders using institutional funding lines often require multiple internal approvals. Those deploying their own capital or fully discretionary lines can move faster, as decisions sit in one place.
Regulated vs unregulated lending
Regulated bridging involves additional checks and is typically slower. Unregulated lending, used for investment property, allows for faster execution and more flexibility.
Valuation, legals, and approval
Approval timelines are typically determined by the lender’s valuer completing their report and the solicitor’s property searches. Where lenders use AVMs (automated valuation models) and accept title insurance, no searches are required and completion can take place in just a few days.
Don’t assume all lenders operate at the same pace. If speed is important to secure your property investment, find fast bridging loans by concentrating your shortlist around:
There are far fewer bridging lenders available for heavy refurbishment projects than light refurbs, or quick ‘fix and flip loans.’
Heavy refurbishment typically involves structural works, reconfiguration / change of use, or planning uplift, and usually an asset that’s not currently mortgageable.
Refurbishment bridging lenders are underwriting both the borrower and the scheme, so once you factor in experience, the project scale, and GDV (Gross Development Value), a large portion of the market is removed before any pricing discussion begins.
For example, a first-time developer building 2–3 units will be looking at a very different lender set compared to an experienced developer delivering a 20-unit scheme.
To help shortlist relevant lenders, consider:
Works scope and funding structure
Some lenders cap at light refurbishment. Others will fund heavy works, including structural changes, and release funds in stages, with some lenders funding up to 100% of build costs.
Day 1 value vs GDV
Some lenders lend against the current value only. Others underwrite against the projected GDV, which can increase leverage but introduces more scrutiny around costs, timelines, and exit.
Experience and project risk
Heavier refurbishments bring tighter underwriting. Lenders will assess track record, contractor setup, and contingency. First-time borrowers are typically limited to simpler schemes or lower leverage.
Concentrate your shortlist on:
Refurb bridging loans are a kind of hybrid finance, sitting between standard bridging and development finance. Some projects, and particularly ground-up developments, might be better suited to development finance.
If you’re funding a ground up development project, the development finance lenders worth shortlisting are entirely dependent on the specifics of your build. A development finance application is a lot more complex and longer than bridging finance. Lenders scrutinise the minute details of your project plans, build schedule, costs and exit strategy (including any marketing plans). If you’re new to ground-up development, the pool of lenders available to you will be smaller.
In general, the lenders worth shortlisting are those offering higher leverage, both against build costs and LTGDV (loan to gross development value). A larger loan might be marginally more expensive but it reduces your deposit input so you can save capital for investing simultaneously elsewhere or moving onto a bigger project later.
For more in-depth knowledge of development finance, head to our development finance homepage or read more in How does property development finance work?
If you’re buying commercial property, the finance providers worth shortlisting are driven by the specifics of the asset and its income profile.
Commercial bridging lenders tend to segment based on:
A well-let office with a strong covenant produces a broad shortlist. A secondary retail unit with short leases produces a much narrower one.
Some practical examples:
There’s also a clear pattern in where higher leverage deals are actually available.
Across the market, 70%+ LTV bridging is far more available on residential and HMOs than on more complex assets like hotels or care homes. That immediately shapes which lenders are worth including depending on the asset.
Naturally, the more products available, the more competitive the pricing and terms.
Understanding that lenders differ is one thing, but how do you find out who actually lends on the type of project you’re doing?
Market transparency is a problem when it comes to searching for specialist property finance, with common friction points being:
If a borrower can’t see all the options available, then they can’t compile a useful shortlist of lenders.
The good news is that the market has changed, and technology has revolutionised how borrowers search for and secure bridging loans.
Savvy investors now use comparison platforms to instantly see the breadth of the market upfront, filter lenders by deal characteristics and refine their shortlist before entering detailed discussions.
By entering the details of the property deal into a comprehensive comparison platform, like Brickflow, borrowers gain access to broad market visibility, and get a clear view of:
Rather than approaching lenders one by one, or via a broker’s pick of lenders, they build a view of the relevant market first, shortlist the best options, then engage selectively.
Learn more about how to compare bridging lenders in the UK.
Once a shortlist is established, the focus shifts to comparison.
At this stage, the key questions are:
Being able to compare like-for-like details on gross and net loan, rates, fees and terms is game-changing. It empowers borrowers with information and clarity, and enables them to carry out financial due diligence in seconds, ensuring their deal stacks against real-time loan structures and borrowing costs.
Using a comparison platform helps you find the best available deals on the market. Combined with a specialist broker for further support and insight on the shortlisted lenders, you can be sure you’re making the best decision for your circumstances.