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Bridging & Development Finance

Specialist Short-Term Property Funding for Time-Sensitive Opportunities and Development Projects

When speed matters, traditional mortgages can't deliver, or your property doesn't meet conventional lending criteria, bridging and development finance provide powerful alternatives. These short-term funding solutions enable property purchases, refurbishments, developments, and investments that would otherwise be impossible or impractical.

As specialist brokers with extensive experience in bridging and development finance, we arrange funding for time-sensitive purchases, complex properties, property development projects, and situations where mainstream lenders cannot help.

What is Bridging Finance?

Bridging loans are short-term secured loans, typically lasting from a few weeks to 18 months, designed to "bridge" a temporary funding gap until permanent financing or property sale proceeds become available.

Unlike traditional mortgages that focus heavily on income and affordability, bridging lenders primarily assess the property's value and your exit strategy—how you'll repay the loan when the term ends.

Important Notice

Bridging finance is not suitable for everyone. These loans carry higher interest rates than standard mortgages and require credible exit strategies. They should only be used for short-term funding needs where the benefits outweigh the costs.

When You Need Bridging or Development Finance

Broken Property Chains

When your onward purchase is ready but your sale has fallen through, bridging finance allows you to proceed without the dependency.

Auction Purchases

Auction properties require completion within 28 days. Bridging finance enables auction buying with funding arranged within days.

Uninhabitable Properties

Fund purchase and refurbishment of properties too poor for standard mortgages, refinancing once works complete.

Development Projects

Fund ground-up developments, major refurbishments, conversions, or change of use projects with staged payments.

Types of Bridging Finance

Closed Bridging Loans

Fixed end date with confirmed repayment method. Used when you have exchanged contracts on a property sale or have a definite refinance date.

  • Guaranteed exit with confirmed date
  • Usually lower rates due to certainty
  • Ideal for property chain situations
  • Requires proof of repayment method

Open Bridging Loans

No fixed end date with flexible repayment timing. Used when exit timing is uncertain, such as waiting for planning permission or property sale.

  • Maximum terms typically 12-18 months
  • Greater flexibility for uncertain exits
  • Higher rates reflect increased lender risk
  • Suitable for development or planning projects

Regulated Bridging Loans

FCA-regulated loans for properties that are or will become your main residence. Provides additional consumer protections.

  • Full affordability and suitability assessment
  • Consumer protection rights
  • Cancellation rights period
  • Stricter lender requirements

Unregulated Bridging Loans

For investment properties, buy-to-let, or commercial premises. Focus primarily on property value and exit strategy.

  • Not FCA regulated
  • More flexible criteria
  • Fewer consumer protections
  • Focus on security and exit strategy

What is Development Finance?

Development finance provides funding for property development projects, from small-scale refurbishments to major residential or commercial developments.

Unlike bridging loans that typically fund completed properties, development finance releases funds in stages as construction progresses, matching funding to actual development costs and managing risk for both borrower and lender.

Development Finance Structures

Standard Development Finance

Covers land purchase and construction costs for ground-up developments or major refurbishments.

  • 60-75% of total development costs
  • 60-70% of Gross Development Value
  • Stage releases as works progress
  • Terms typically 12-24 months

Heavy Refurbishment Finance

For significant refurbishment projects not requiring full development finance.

  • Shorter terms than full development
  • Simpler structures and monitoring
  • Suitable for HMO conversions
  • Property improvement projects

Mezzanine Finance

Additional lending on top of senior debt to increase total funding available for development projects.

  • Increases total project funding
  • Higher interest rates than senior debt
  • Reduces required developer equity
  • Subordinate to primary facility

Rolled-Up Interest

Interest accumulates and is paid at project end rather than monthly, preserving cashflow during construction.

  • No monthly interest payments
  • Preserves cashflow during development
  • Higher total interest costs
  • Suitable for no-income projects

Calculate Your Bridging or Development Costs

Use our calculator to estimate borrowing capacity, interest costs, and project feasibility

Bridging & Development Finance Calculator

Fast-track finance for urgent purchases and property development projects

Typical bridging rates: 0.7% - 1.5% per month

Exit Strategies: The Critical Element

Exit strategies determine whether bridging or development finance will be approved. Lenders must understand clearly how you'll repay the loan.

Property Sale

The most common exit. You'll need evidence the property will sell for sufficient value and within reasonable timeframes with estate agent valuations and comparable sales.

Refinancing to Standard Mortgage

Once refurbishment completes or circumstances change, refinance to a conventional mortgage. Lenders assess whether you'll meet mortgage criteria at that point.

Sale of Another Property

Using proceeds from selling a different property. Lenders want evidence the sale is progressing or the property is marketable and appropriately valued.

Development Sale

For development projects, selling completed units. Sales evidence, demand indicators, and realistic pricing support exit strategy credibility.

Weak exit strategies lead to declined applications or restrictive terms. We help you structure and evidence your exit strategy to maximise approval chances.

Complex Bridging & Development Finance Cases

Our expertise particularly benefits situations that require specialist knowledge and lender relationships

Adverse Credit Bridging

Credit issues don't prevent bridging finance if you have sufficient equity and credible exit strategies. We work with lenders who accept CCJs, defaults, IVAs, and even discharged bankruptcy.

Unmortgageable Properties

Properties that mainstream lenders reject—structurally unsound, fire damaged, unusual construction, or with title issues—can be bridged for purchase and rectification.

Commercial Bridging

Offices, warehouses, retail units, and mixed-use buildings require specialist lenders understanding commercial property markets with competitive commercial bridging terms.

Portfolio Landlords

Landlords with large property portfolios face additional scrutiny. We work with lenders who understand portfolio investment strategies.

Overseas Applicants

Non-UK residents or overseas investors face restricted lender options. We access bridging and development lenders who actively support international clients.

High-Value Projects

Large loans above £1 million or complex multi-phase developments require sophisticated lenders with substantial funding capacity and appetite for complexity.

Understanding the Costs

Bridging Finance Costs

  • Interest: 0.4% to 1.5% per month (5-18% annually)
  • Arrangement fees: 1-2% of loan amount
  • Valuation: £500 - £2,000
  • Legal fees: £1,500 - £3,000 combined

Example: £200,000 loan for 6 months

  • Interest (0.75% monthly): £9,000
  • Arrangement fee (2%): £4,000
  • Legal & valuation: £3,000
  • Total: ~£16,000

Development Finance Costs

  • Interest: 0.5% to 1.2% per month (6-14% annually)
  • Arrangement fees: 1-2% of total facility
  • Monitoring: £500 - £1,500 per inspection
  • QS report: £2,000 - £5,000

Example: £500,000 facility for 12 months

  • Interest (0.8% monthly avg): £35,000
  • Arrangement & exit fees: £15,000
  • Monitoring, legal & QS: £16,000
  • Total: ~£66,000

While expensive compared to standard mortgages, bridging and development finance enable transactions that couldn't otherwise proceed

Why Choose Us for Bridging & Development Finance?

Bridging and development finance require specialist knowledge that general mortgage brokers often lack

Specialist Lender Panel

We work with dedicated bridging and development finance lenders across the market, ensuring access to competitive rates and maximum borrowing.

Complex Case Expertise

We handle challenging cases: adverse credit, unusual properties, first-time developers, complex structures, and time-critical situations.

Speed and Efficiency

We understand urgency in bridging scenarios. Our streamlined processes and lender relationships enable rapid applications and quick fund releases.

Exit Strategy Planning

We help structure credible exit strategies that satisfy lenders and ensure you can repay loans as planned, avoiding significant problems.

Development Expertise

Our experience with development projects means we understand appraisals, cost planning, GDV assessments, and lender criteria.

Transparent Costs

We explain all costs clearly upfront—interest, fees, and associated expenses—ensuring you understand total borrowing costs before proceeding.

Frequently Asked Questions

Get Expert Bridging & Development Finance Advice

Whether you need short-term bridging for a time-critical purchase or development finance for a construction project, we provide the specialist expertise and lender access to secure appropriate funding.

Call: 07414516102

Or email us at info@clearpathmortgages.co.uk

Important Information

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR LOAN.

Bridging loans and development finance are specialist financial products that carry significant risks. These products are typically only suitable for short-term financing needs and should not be considered as long-term borrowing solutions.

Interest rates on bridging and development finance are significantly higher than standard residential mortgages. Total borrowing costs can be substantial, particularly if loans extend beyond anticipated timescales.

You must have a credible exit strategy for repaying these loans. If your exit strategy fails, you risk repossession of the secured property and potential financial losses exceeding your initial investment.

The guidance contained within this page is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

Some bridging loans are regulated by the Financial Conduct Authority (FCA) where the property is or will become the borrower's residence. Unregulated bridging loans for investment or commercial properties do not carry the same consumer protections.

The information provided is for general guidance only and does not constitute financial advice. Your circumstances and requirements will be unique, and our recommendations will reflect this.

Think carefully before securing debts against your property. Ensure you fully understand the costs, risks, and obligations before proceeding with bridging or development finance.