Who Can Get A Bridging Loan? Eligibility & Criteria Borrower Tips

Who Can Get A Bridging Loan? Eligibility & Criteria

Property developers are increasingly realising the benefits that bridging finance can offer when financing property development projects. A fast, flexible solution largely used when buying, selling, or refinancing property.

Bridging loans are short-term solutions, usually lasting between 1-12 months, with higher interest rates than conventional mortgage loans (including development finance and commercial mortgages). They require a viable exit strategy and are secured against the property or properties involved. Borrowers must also offer recourse, typically in the form of a personal guarantee.

Like most things in life, bridging loans have pros and cons. Lenders should carefully consider the terms of any contract before signing, ensuring that what they are agreeing to is feasible. This is where a platform like Brickflow helps. Not only will it find you the best bridging finance deal, but it will also advise as to all costs involved across 100+ bridging lenders in the UK.

This article explores who is eligible to secure a bridging loan, the general criteria involved in determining whether someone is eligible or not, the application process and finally, the varying uses of a bridging loan to ensure that it is the correct lending solution for your needs.

Who is Eligible for a Bridging Loan?

Bridging loans are generally available to individuals or companies that need short-term finance to cover a gap between the purchase of a new property and the sale of an existing one. The typical categories of people who take bridging loans include:

  • Property Developers/Investors: Often used by developers who want to move quickly on a site or property purchase, or buy something that wouldn’t qualify for traditional finance (such as a property in disrepair or a site without planning permission)

  • Homeowners/Property Buyers: Homeowners often need short-term funding to uphold the purchase of a new home without selling their current one

  • Businesses: Can be used to fund new equipment or machinery purchases to upscale production and business turnover (Can businesses use a bridging loan to secure corporate premises or do they need a corporate mortgage for this?)

Bridging Loan Eligibility Criteria?

While specific eligibility criteria vary between lenders and products, common requirements exist. Below, we’ve broken the eligibility criteria down into three sections, basic requirements, financial requirements, and additional factors that might influence a bridging lender's decision.

Basic Requirements

Basic eligibility requirements include:

Age Must be at least 18 years old; some lenders may also impose an upper age limit
Residency Status Should be a UK resident or a UK national residing abroad. For unregulated bridging loans, non-UK nationals have limited options
Employment Status Can be employed, self-employed, or retired
Legal Entity Can apply as an individual, a Limited Company, an LLP, or a partnership
Experience Having prior experience with similar projects can strengthen the application, especially if value-added work is involved, though it is not mandatory
Loan Term Bridging loans usually have a maximum term of 24 months, with many lenders offering terms of 12 or 18 months. For projects requiring extensive building work that can't be finished within 24 months, development finance may be more suitable

Financial Requirements

Financial eligibility criteria include:

Solid Exit Strategy Lenders need a definitive plan for repaying the loan, whether through selling or refinancing
Security Borrowers must provide high-value assets, typically property or land, as collateral
Minimum Lending Requirement Most lenders prefer loans of £100,000 or above
Creditworthiness Lenders check the borrower’s credit history to assess repayment capability. While less important than with residential mortgages, clean credit can help secure better rates

Additional Factors

Additional factors that might influence a lender’s decision include:

Healthy Deposit Most lenders offer 70-75% gross LTV, but better rates may start with a 40% deposit
Proof of Income While not a primary requirement, proof of income can bolster an application
It’s also worth noting that even with bad credit you can still secure a bridging loan. Take a look at our guide ‘Can You Get A Bridging Loan With Bad Credit?’ for more information.


bridge loan mortgage


What Can a Bridging Loan Be Used For?

Bridging loans are versatile and can be used for various purposes in the property market and beyond:

Common Uses in the Property Market

  • Meeting Transaction Deadlines: Bridging loans can be arranged fast,  in just a few days in fact, giving buyers an advantage in securing prime location sites
  • Chain Break Finance: Prevents the collapse of a property chain
  • Property Auctions: Enables buyers to meet the 28-day completion requirement when purchasing a property at auction
  • Property Refurbishment: Facilitates quick refurbishments and renovations for resale within the loan term
  • Uninhabitable Properties: Suitable for properties that don’t qualify for traditional finance
  • Landlords Looking to Expand: Ideal for securing additional buy-to-let properties or renovating uninhabitable ones
  • Development Exit: For developers looking to repay existing debt or release equity from a project, development exit finance is a useful tool

Other Uses

  • Buying Land Pre-Planning: Financing for obtaining planning permission, which can increase property value. Take a look at our ‘Land Bridging Finance’ page to find out more
  • Brownfield Sites: Interim financing for preparing industrial sites for development
  • Run-Down Commercial Premises: Financing for commercial properties that need substantial refurbishment

How to Apply for a Bridging Loan

Application Process

To secure a bridging loan, follow these key steps:

  1. Apply for a Bridging Loan: Submit a professional application detailing the property or site and your plans
  2. Provide Documentation: Include ID, proof of address, and detailed costings of the proposed works
  3. Lender Evaluation: The lender will conduct a property valuation and may appoint an Independent Monitoring Surveyor (IMS) at your expense
  4. Receive the Loan Offer: If approved, the lender will provide an official loan offer with terms and conditions
  5. Complete Legal Work: Both sides need separate legal representation. Once all parties are satisfied, the loan contract is signed, and funds are released

Ways that this can be done include:

Using a Broker

Using a specialist broker can help navigate the market and find the best loan for your circumstances. Brokers using Brickflow’s software can search over 90% of the market in minutes, securing the best deal that fits your criteria.

Register with Brickflow

To streamline the process and access the best bridging deals, register with Brickflow or inform your broker about this powerful tool. Brickflow’s platform allows for efficient comparison of bridging loans from across the market, ensuring you get the best terms for your bridging loan needs.

Final Thoughts

If you’re in the market for bridging finance and looking for the best deal, try Brickflows' bridging finance comparison tool. If you have questions about how much you can borrow, try our bridging loan calculator

Brickflow allows you to compare offers from over 100 lenders across the UK, ensuring they find a bridging lender that meets their needs. If you have further questions, you can get in touch with our team, who will be able to advise you on the best loan to suit your project needs.

Compare development finance and bridging loans from 100+ lenders, in minutes

Brickflow is a digital marketplace for bridging loans, commercial mortgages and development finance.  We connect borrowers, brokers, and lenders to source the best value loans, quickly and easily.

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