Understanding Bridging Loan Repayment Terms in the UK

If you are considering a bridging loan, one of the first questions you might ask is: how long do you get to pay back a bridging loan?

The answer depends on the type of bridge loan you choose, your repayment format, and the structure of your agreement. In this guide, we’ll explain the typical bridging loan term, repayment options, and what UK landlords and property investors need to know about this short-term financing solution.

The article is updated as of July 25, 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?

A bridging loan is a short-term loan used to “bridge” the gap between needing funds and securing long-term finance or selling an asset. It’s especially common in the property sector, including cases like quick property purchases, probate property acquisitions, and business asset restructuring.

Unlike traditional loans, bridging finance is fast, flexible, and usually comes with a monthly interest charge instead of full repayments.

How It Works for Landlords and Investors?

Landlords, property developers, and individual investors often use bridging finance for:

• Auction property purchases
• Cash flow gaps due to an unpaid customer invoice
• Renovation projects or conversions
• A business sale or releasing value from valuable items or business shares

Types of Bridging Loans in the UK

• Closed bridging loans – have a fixed exit strategy agreement
• Open bridging loans – for when the exit is not yet finalised (an undetermined time frame)

Typical Bridging Loan Repayment Terms

Standard Term With Repayment

In the UK, the typical bridging loan term ranges from 3 to 12 months, though some lenders offer a 15-month term or longer. Loans are often structured as an interest-only loan with full repayment due at the end of the term.

Quick Turnarounds for Repayment

These loans are designed for quick turnarounds, making them a suitable option for those needing instant cash flow to complete a purchase or cover temporary gaps.

What Affects the Repayment Period?

• Property type (residential, commercial, or probate property)
• Proof of income and financial stability
• Credit history and whether a credit check is required
• Strength of the exit strategy (e.g., remortgageRefinancing an existing mortgage with a new mortgage. exit strategy, sale of a property, or equityThe difference between the value of the property and the amo... financing)
• Whether the loan is secured against a form of collateral like a property or business asset

Repayment Options and Exit Strategies

Common Exit Strategies

To repay the loan, you will need a common exit strategy, which may include:

• Selling the property
• Switching to a long-term buy-to-let mortgage
• Using proceeds from a business sale
• Refinancing with a lower-interest, long-term mortgage

Some landlords also use equity financing or personal savings to settle the loan.

Types of Repayment Options

• Rolled-up interest – interest added to the total loan
• Monthly interest – regular payments with capital due at the end
• Retained interest – interest deducted in advance from the loan sum

Each format suits different investor needs, especially those operating in a sector with investors using fast financing methods.

What If You Can’t Repay on Time?

Risk for Borrowers

If you miss your deadline, there may be:

• Higher monthly interest charges
• Legal action by the lender
• Risk of losing your collateral (usually property)

Bridging loans can be an expensive option if not repaid quickly.

Turnarounds for Repayment

Some lenders may offer a short extension, but this isn’t guaranteed. If you’re at risk of default, consider a:

• Remortgage exit strategy
• Loan advance from another source
• Specialist advice to restructure your loan

Bridging Loan vs Regular Loans

Comparing to Traditional or Regular Loans

Bridging loans differ from typical loans in several ways:

• Quicker to arrange
• Based more on asset value than income
• Used for short-term purposes only

However, they’re not a suitable mortgage replacement in the long term.

When Bridging Is a Common Option

• You’re buying before selling
• You’re waiting on an unpaid customer invoice
• You’re purchasing under auction conditions
• You need a smooth transition between two property transactions

Final Thoughts: Is a Bridging Loan Right for You?

If you are a landlord or investor, a bridging loan can provide instant cash flow to fund urgent purchases or renovations. However, it’s important to:

• Understand the repayment format and timing
• Have a solid exit strategy
• Get specialist advice tailored to your situation

Many individual landlords prefer bridging loans for flexibility, but without a plan, they can be high-risk.