Bridging Loan for Property Flip: What You Need to Know

Flipping a property in the United Kingdom can be rewarding, but it is rarely straightforward—especially when it comes to funding. Traditional loan applications with high street banks often do not support the needs of ambitious investors or property developers. This is where a bridging loan for property flip becomes relevant: it is fast, flexible, and designed specifically for short-term financial needs.

This article explains how bridging loans work for property flipping, how long you can have one, and the factors that impact costs, lending criteria, and exit strategies.

The article is updated as of June 17, 2025 Bridging loans are a form of short-term secured borrowing and may not be suitable for everyone—failure to repay on time can result in the loss of your property. Bridging loans are available by referral only

What Is a Bridging Loan for Property Flip?

A bridging loan is a short-term, interest-only secured loan designed to bridge the gap between purchasing and selling a property or arranging longer-term finance. When flipping a property, it allows you to secure auction properties, fund extensive renovations, or complete purchases quickly—sometimes in under 14 days.

Key Features

• Loan Term: Three to twenty-four months (common range: six to twelve months)
• Loan Amount: Up to eighty to ninety percent loan-to-value (LTV)
• Interest: Paid monthly, retained, or rolled-up
• Exit Strategy: Sale of property or refinancing with a suitable lender
• Loan Types: First or second charge bridging loans, short-term bridge loans, development finance, refurbishment loans

To explore your options, consider seeking independent financial advice.

Why Use Bridging Finance for a Property Flip?

Bridging loans offer a distinct advantage of time, especially when dealing with:

• Auction house purchases with a 28-day time limit
• Uninhabitable or unmortgageable property not suitable for traditional mortgages
• Property below market value or with structural issues requiring refurbishment
• Broken property chain or divorce settlement cases where fast access to finance is essential

Benefits:

• Speed: Funds can be released in a matter of days
• Flexibility: Monthly interest payments or rolled-up options
• Access: Suitable for those with adverse credit or irregular personal income
• Control: Ideal for flip projects with a strong exit plan and clear property investment objectives

Learn more about short-term property finance.

How Long Can You Have a Bridging Loan?

Most bridging loans last between six and twelve months, though terms of three to twenty-four months are available depending on the project type, risk profile, and exit fee structure.

Use a refurbishment bridging loan calculator to estimate monthly repayments and overall financing costs.

Repayment Strategies and Loan Exit Plans

Flip projects are most successful when there is a solid exit strategy. Repayment usually comes from:

• Selling the property (to cash buyers or retail buyers)
• Remortgaging with a residential mortgage or commercial property loan
• Using capital from another property investment or income source

Exit fee and loan cost structures vary by lender, so always seek professional advice.

Read more about the exit strategy for bridging loans.

Bridging Loan Application Process

A typical bridging loan application includes:

• Proof of income required
• Business Plan or flip strategy
• Credit checkA check of a borrower's credit history, which is used by mor... and review of credit profile
• Details of additional security (if required)
• Official valuation of the property
• Lending panel assessment
• Decision in principleA preliminary decision by a lender to offer a mortgage, base... (within 24 to 72 hours)

Using a bridging loan broker or finance broker can speed up the process, especially with specialist lenders.

When to Consider a Specialist Bridging Loan

You may need a specialist broker if:

• The property is in poor or uninhabitable condition.
• You are flipping a single property as a limited company
• You require 1st or 2nd-charge bridging loans
• You need to source finance for land with planning or agricultural land
• You are purchasing in a short window of opportunity or aiming for high profit margins

Speak to qualified professionals to identify a suitable lender and secure favourable terms.

Bridging Loan vs Traditional Finance Options

For those with bad credit or practical issues, bridging finance provides a form of finance that is flexible and results-driven.

Frequently Asked Questions

Can I get a bridging loan with bad credit?

Yes. Many specialist lenders accept borrowers with a poor credit history if the project has a clear exit and sufficient security.

Do I need to own a rental property to qualify?

No. Bridging loans can be used for a variety of property types, including auction properties, development projects, or flips.

What are the typical costs?

Costs include monthly interest (from 0.6%–1.5%), a broker fee, valuation fee, legal costs, and potentially an exit fee. Additional costs may apply for complex cases.

What types of property are eligible?

Refurbishment loans can be used on residential properties, commercial property, investment property, or additional property. Some lenders also finance land-banking opportunities.

Final Thoughts

A bridging loan for property flip is an effective way to access short-term finance quickly—especially when purchasing property below market value, requiring refurbishment, or managing a chain break. It offers a suitable solution for seasoned investors and new entrants looking to grow their portfolio.

Whether you are managing multiple property types or a single flip project, aligning with an expert team and a suitable lender will reduce risk and improve potential profits.