Bridging loans to purchase/renovate/develop property and to raise funds

Fast turnaround – decision either immediately or within 24 hours – cash draw down in 5-14 days.

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Bridging loans for individuals and for business

Redrock Commercial Finance, founded in 2011, provides individuals and businesses with access to a whole of market selection of Britain’s bridging loan and property development finance companies.

By working with traditional lenders, specialist lenders, private banks, and international financial institutions, our borrowers benefit from the most competitively priced bridging loans and property development finance on the most favourable terms.

We understand that, when you approach us, time is of the essence and that you need us to deliver a decision to you as quickly as possible. When we speak, we’re able to give you an instant indication on the likelihood of your proposal finding a lender.

If there is a lender on our panel which we believe would offer you an attractive funding deal on your proposal, we contact them straight away and we’re normally about to obtain an in-principle decision direct from the lender within 3 working hours.

To contact Redrock Commercial Finance, call us on 020 3780 7610 or click here for our Click contact form.

Getting a bridging loan – the process


Contact us by telephone or by using our contact form. Let us know how much you need to borrow, the security you’re offering, and the reason you need the funding. Please share as many details with us as possible.


We’ll be able to let you know straight away whether your deal is likely to be funded. Within 3 hours, we’ll approach the most suitable lenders so that you have an in-principle decision on your application.

Valuations & legal

The lender will then arrange for a surveyor to inspect the property you’re offering as security. At the same time, the lender’s solicitors will contact your solicitors to draw up the agreement for your bridging loan.


When the lender has received your paperwork and they have a satisfactory report from the surveyor, they will then release then funds for draw down. This should happen 5-14 days after your application.


Bridging loans explained - what is a bridging loan?

The standard bridging loan definition is a type of short term finance secured on property used to fund a project from one stage to the following stage.

For example, someone wishing to move home may have seen a property they wish to purchase but their current home has not sold yet. They may be under pressure from the seller who may be threatening to withdraw if completion does not take place by a certain date.

For a situation like this, the homemover may choose to use a bridging loan to purchase the property they want to move into so that they meet the completion date target set by the seller. They would then pay the bridging loan back using the proceeds from the sale of their original property when they’ve found a buyer.

Security is needed for each bridging loan meaning that you’re at risk of having that security repossessed if you default on the loan. The provision of security is required on each application to meet a key bridging loan criteria and any application put forward without security will be rejected.

What is the difference between a bridging loan and development finance?

Development finance funding amounts tend to be much higher than standard bridging loans. The average size of a UK bridging loan is around £550,000, much lower than most development funding packages.

How much do I have to find for a bridging loan deposit?

Bridging loan deposits vary from 30% to 40% depending on the security being offered, the lender’s opinion on the likely success of the proposed repayment plan, and the credit rating of the borrower. On property-related projects using bridging loan or development funding, you may be able to secure an even higher loan to value depending on your track record in development, renting, and renovation.

Loans of up to 100% LTV are achievable if you have additional security to offer in which there is sufficient equity.

How do you repay a bridging loan?

How a bridging loan works is different to other types of secured finance you may have taken out in the past.

Unlike mortgages and secured loans, there are no monthly repayments. You make one payment at the end of the term of the loan to settle the account in full.

Although bridging loans and development finance are more expensive than traditional mortgages and secured loans, they may be preferable from a cash flow point of view when working on a property project because the available balance in a developer, investor, or landlord’s bank account does not reduce during the project’s execution as a result of having to make monthly repayments.

Exit strategies on bridging loans to purchase property and land

Standard repayment methods (sometimes called “exit strategies”) for bridging loans to purchase property include:

the sale of the property (or newly-created units within a property post renovation) by a third party
the securing of a residential occupier or buy-to-let mortgage on a property or newly-created units within a property
the securing of a commercial occupier or buy-to-let mortgage on a property or newly-created units within a property
the sale or securing of alternative finance against land


Exit strategies on bridging loans to raise funds

Standard exit strategies for bridging loans used to raise funds include using:

refinance to longer-term products like residential, BTL, and commercial mortgages
anticipated revenue – funds that you're expecting to receive from a third party which covers the outstanding balance and which will be paid before the due date
an insurance policy which will mature before the end date of the loan
expected proceeds from the sale of something you receive as a benefactor to a deceased person’s estate
the sale of other property owned by the borrower

Why apply for a bridging loan?

Many company owners apply for a bridging loan for business to raise funds often for the following reasons:

the payment of taxes to HMRC
settling of outstanding business debts
the halting of bankruptcy or repossession orders
unexpected items of expenditure
investment in a time-sensitive opportunity or in business plant, machinery, and equipment.

Likewise, borrowers apply for personal bridging loans to raise funds often to provide the funding to:

pay outstanding or due tax liabilities to HMRC
settle of outstanding personal debts
halt bankruptcy or repossession orders
meet unexpected expenditure
manage probate issues
meet inheritance tax and stamp duty liabilities

Can I use a bridging loan to buy a house to live in?

When borrowing money to buy a property you intend to live in, you may use a regulated bridging loan to buy your house. You might wish to borrow money to buy and renovate a property prior to moving in – when you do move in, your exit strategy is the securing of a standard residential mortgage which you use to pay the bridging loan back.

If you wish to construct your new home from scratch yourself as, you should apply for a bridging loan for self-build property – please ask for more information when you call.

Is a bridging loan a mortgage? No. Although both are used to purchase property and, on both, the lender takes first charge over the property, a regulated bridging loan may only by law have a maximum term of 12 months whereas a mortgage may be repaid over a period of up to 35 years.

Do bridging loans for bad credit applicants exist?

Yes. Redrock Commercial Finance has a high number of established lenders on its panel many of which work with borrowers who have a bad credit history or no credit history.

Bridging loan broker vs bridging loan providers

There are more bridging loan lenders in the UK than ever before as bridging loan companies compete in a market which now tops £5bn a year in size.

Each lender works to their own specific criteria on which they judge borrowers’ requests for funding. The finance teams working for each lender accept or reject borrowers’ loan applications depending on how closely the details on a funding proposal match those underwriting criteria.

We work on a daily basis with the underwriters across the panel of lenders we partner with and, when we receive your application, we know which lenders are likely to look favourably upon your request and which lenders would not consider approving your loan.

We save time and money for borrowers by ensuring that we only approach lenders where there is a good match between the deal you’re proposing and a funder’s underwriting criteria. This means that we not only save borrowers time but that we’re also completely confident that you will not be able to secure a better funding package if you looked yourself.

Development finance interest rates

Bridging loan rates are priced to reflect the amount of funding you’re asking for, the reason you want the funding, the value of the property you offer as security, your personal credit history, and the likelihood of your exit strategy being successful. The greater risk they perceive, the higher the bridging loan interest rate you’ll pay.

To receive an instant bridging loan cost estimate for your project by email, please click for our bridging loan calculator.

Getting a bridging loan with Redrock

To find the best bridging loan for your project or your funding requirements, please call us on 020 3780 7610 or click here for our contact form.