Compare Bridging Loans

How to use Brickflow's bridging loan comparison tool?

Brickflow’s live bridging loan comparison is the fastest, easiest and most accurate way to compare bridging loans from across the market.

Here’s how to use our live market comparison tool:

• • Enter your property details and search loans from banks, challenger banks, non-banks and specialist bridging lenders
  • See exactly what you can borrow and at what cost, comparing rates, fees, LTVs, deposit requirements and more
    

• • Shortlist your preferred loans and request multiple lenders to bid on your project, then choose the best deal to proceed with
    

• • Our digital Smart Appraisal™ is the only tool that connects directly with lenders, and covers everything they need to know to make fast, reliable credit decisions
  • If one lender says no, apply to another with just one click, meaning no more repetitive form-filling. Your intermediary will manage your application and ensure you’re happy with the loan T&Cs
    
    

An overview: What is a bridging loan and how do they work?

Bridging finance is a short-term loan used to plug temporary funding gaps, typically between buying and selling or refinancing a property, or purchasing properties or land that other funding cannot cover. They’re fast to arrange and provide immediate liquidity.

The property you’re buying with the bridging loan, existing properties, or a combination of both are used as securing assets, which the lender can repossess in the event of a default.

Similar to development finance, income and good credit history are not key to securing a bridging loan. Lenders are more interested in the asset value and saleability, your experience and your exit strategy.

Typical exits are:

• Selling another property (lenders love an exit with a completion date already agreed - i.e. a ‘closed bridge’)
• Selling the property that the loan is secured against after completing value-add work
• Refinancing with a traditional mortgage or commercial mortgage
• Transitioning onto development finance
• Re-bridging

Key features:

What can a bridging loan be used for?

Bridging loans have come a long way since they were first introduced in the 1960s. They were originally intended to prevent the collapse of a property sale and were considered an absolute last resort.

Nowadays, whilst one of their primary uses is still to prevent a chain break, experienced property investors routinely use this flexible finance to widen their market opportunities and improve return on investment.

Common uses include:

• Purchasing or building a property before selling an existing home/ property
• Auction purchases
• Purchasing land without planning or only outline planning
• Purchasing properties ineligible for traditional mortgages (e.g. properties under £50,000, uninhabitable properties with no working kitchen or bathroom, or structural issues, properties with non-standard construction)
• Funding renovations that can be completed in a short time
• Transacting quickly on advantageous market conditions, like buying land at a reduced price
• Releasing equity from a property without re-mortgaging
• Upgrading business operations

What Bridging Loan Comparison Shows

A comprehensive bridging loan comparison shows you how much you can borrow, the associated rates and fees, and loan terms.

No lender will fund every type of property or every borrower profile, and when you compare bridging loans, the options and pricing shown are dependent on several key factors, including:

• The property: Type of property, location, condition, proposed project, value, and market demand.
• Risk profile: Both of the borrower and the purchase conditions. For example, heavy refurbishments carry more risk than a straightforward purchase and refinance; a borrower with no prior experience or poor credit history poses higher risk.
• Exit strategy: Lenders naturally prefer stronger exits like repaying the loan from the proceeds of a sale that has a set completion date, or exiting via refinance where a mortgage in principle has already been offered.

Some bridging loan comparison platforms show you approximate or vague market ranges for loans.

However, at Brickflow we compare 200,000+ data points weekly, to match lending criteria to your circumstances, and deliver reliable, accurate results of loans that meet your needs. You can also lock in the deal shown by applying for a DIP (Decision in Principle) directly from the platform.

What to consider when comparing bridging loans

To find the best bridging loan, you have to compare bridging loans from across the whole of the market. It’s easy to fall into the trap of searching only on the basis of interest rates. Interest rates of course affect the cost of your loan, but there are many other factors to consider:

• Loan-to-value ratio: Compare how much each lender is willing to offer against the property or site. Typically, bridging lenders offer a maximum LTV of 75% of (on a gross basis), but this varies significantly between lenders. For refurbishment bridging finance, also compare the loan-to-costs offered by the lender.
  
  
• Deposit requirements: Materially determined by the LTV, this should be one of your key considerations with any bridging loan comparison because it can be the difference of tens to hundreds of thousands of pounds. Do you have enough capital for a lower LTV? Do you want to use all your capital on one project?
  
  
• Loan Term and flexibility: Bridging loans are short-term, usually 12 months or less, but some lenders will lend up to 24 months. Check whether the loan term realistically supports your exit strategy and how flexible the lender is if timings change.
  
  
• Lender Criteria: Is this your first property investment project? Are you a UK national living abroad? Do you have poor credit? Finding the right lender for your circumstances is essential - when you compare bridging loans on Brickflow we have extensive filters so you can omit lenders who don’t meet your criteria.
  
  
• Fees and Charges: Bridging lenders typically charge a 2% arrangement fee, but it can vary. Some lenders charge early redemption fees if you exit the loan before the minimum term.
  
  
• Speed of Funding: How a lender is funded will have a big impact on how quickly they can arrange a loan. High street banks are more heavily regulated in comparison to privately funded specialist lenders, so loan arrangement is typically slower. However some specialist lenders’ funding lines come from banks, so they follow much of the same criteria and process. It’s something worth considering when you compare bridging loans, but it isn’t always easy to find out – your intermediary should be able to help.
  
  
• Interest structure: In addition to comparing interest rates, consider how a lender charges interest. Some lenders allow monthly servicing, while others retain or roll up interest. Also, ascertain if the lender charges interest daily or monthly. If interest is charged monthly, and you exit the loan part-way through the month, you will be charged for the whole month.

Using Brickflow’s live comparison tool allows you to assess all of these factors side by side, so you can choose the best bridging loan that genuinely fits your needs.

Comparing Bridging Loans vs Mortgages

Bridging loans can be significantly more expensive in terms of rates and fees when compared to mortgages, but comparing bridging loans with mortgages is a bit like comparing apples and oranges. They are two very different products, designed for different purposes.

Bridging finance is a short-term loan for time critical or complex transactions that traditional mortgage lenders can’t fund. Bridging lenders focus on the asset, transaction risk and exit strategy. They prioritise speed, flexibility and certainty of execution, often completing in days or weeks where a mortgage may take months.

Mortgages on the other hand are long-term loans based on affordability and stability, with lenders assessing income, outgoings and stress-testing. That lower risk and longer timeframe allows mortgage lenders to offer cheaper borrowing.

In simple terms, bridging loans cost more than mortgages because they solve problems mortgages cannot, such as fast completions and non-standard properties or situations, exposing lenders to higher short-term risk.

Comparing Bridging Loans by Property Type

When comparing bridging loans, property type is one of the biggest drivers of lender appetite, pricing and structure. Different assets carry different risks, so it’s helpful to understand what lenders look for in each asset class and how those factors influence your loan.

Mixed-use property

Mixed-use or semi-commercial properties combine residential and commercial risk, and lenders base loan conditions on the dominant element. For example, a building predominantly residential with just one ground-floor retail unit will be assessed differently from a property where the commercial element makes up the majority of floor space.

It’s important to know because commercial properties tend to incur higher borrowing costs than residential, simply because lenders perceive commercial developments to be more risky than residential, where it is easier to liquidate the assets in the event of a default on repayment.

When comparing bridging loans for mixed-use property, look at:

• How lenders weight residential versus commercial space
• Whether income, vacancy or use of each element affects leverage or pricing

Read more in our blog What are the differences between commercial and residential bridging loans?

Office property

For office property bridging loans, lenders will assess whether the building is let, partially let or vacant, and how easily it could be re-let or sold. If the property is a transitional asset (i.e. will be converted to residential units), lenders will deep dive into the strength of your project.

When comparing offers, focus on:

• How vacancy impacts loan size and structure
• Whether a longer, more stable lease can increase your borrowing options
• How location and demand affect lender confidence

Bridging loans are a short-term solution, so a lender's primary focus is the exit strategy. However, a strong, stable tenancy can bolster your bridging loan application, particularly when refinancing onto a commercial mortgage where having a lease can be key to securing funding.

Retail property

Retail bridging finance is heavily influenced by tenant quality and income stability. Some lenders actively specialise in retail, while others restrict exposure due to sector volatility.

When comparing lenders, consider:

• How tenant strength and lease length affect pricing
• Whether the lender favours certain retail formats or locations
• How income reliability influences exit possibilities

There are more bridging loan lenders in the residential space than commercial, and not all commercial lenders are comfortable with mixed-use properties. The most accurate way to compare loans available for your specific property type, whether it’s retail, office, residential or mixed-use, is by running the numbers through Brickflow’s instant bridging loan comparison.

How to choose the best bridging loan for your needs?

To choose the best bridging loan for your needs, shop the market to determine what loans are available for your circumstances, then compare loan structures and criteria, not just lenders’ names and headline rates. A proper bridging loan comparison allows you to assess like-for-like borrowing options that genuinely fit your property, exit strategy and risk profile.

Brickflow’s live market search lets you instantly compare bridging loans from high-street banks, challenger banks and specialist lenders, filtering results by property type, deal structure and borrower criteria. Meaning you’re only reviewing loans that are actually available for your circumstances, and focuses on comparing what the loan looks like, rather than researching individual lenders in isolation.

Your search results show details such as:

• Maximum loan size
• Net loan and deposit requirements
• Interest structure and rates
• Arrangement fees
• Total lender costs and profit outcomes

After running your bridging loan comparison, you can shortlist your preferred loans. Head to our dedicated bridging loan lenders page for tips on how to choose the right lender.

Is Brickflow a reliable way to compare bridging loans?

Brickflow is the most reliable way to compare bridging loan options, giving users instant market access to see exactly what loans are available.

The platform aggregates 200,000+ lender data points weekly from across the UK bridging market to deliver accurate indicative borrowing ranges, structures and eligibility criteria based on the details entered.

So you can quickly see how different loan types compare and which options are worth pursuing.

Brickflow doesn’t provide financial advice. Instead, it offers the most comprehensive financial due diligence tool on the market, and reduces research time down to a matter of minutes. You can find the best loans on the market without submitting multiple applications or wasting time with lenders who can’t match your needs.

Final pricing, terms and credit approval are always subject to underwriting, valuation and legal due diligence by the lender. However, by narrowing the field early, comparison platforms like Brickflow can significantly speed up the process of arranging a bridging loan and improve decision-making efficiency.

And with Brickflow, you can lock in the rates shown on your search result by applying for a DIP (Decision in Principle) directly from the platform, with lenders returning terms in as little as 4 minutes.

Alternatives to Bridging Loans?

Bridging loans can offer solutions for many property transactions, but it’s worth taking time to decide if they're the right funding for your circumstances. Other types of funding could be more suitable, longer-term, or cheaper borrowing.

Some alternatives to bridging loans include:

• Residential mortgage: A long-term loan to purchase a property you intend to live in.
• Self-build mortgage: Financing specifically for constructing your own home.
• Buy-to-let mortgage: A long-term investment loan to purchase a property you intend to rent out to tenants.
• Business loan: Financing to meet your business's needs, such as equipment or working capital.
• Development finance: Short-term, tailored funding to purchase land or property and fund ground-up development, property conversion or extensive refurbishment work.
• Commercial mortgage: A long-term loan to purchase or refinance commercial property, either to rent to a third party or as your own business premises.
  
  

Use Brickflow's comparison tool to find the best bridging loan deal today

Compare bridging loans from the breadth of the UK market using Brickflow’s live comparison tool and see how deals stack up side by side.