All You Need to Know About Bridging Finance in 2025 – And How FundMyProperty Can Help

23 May

Bridging finance has always been a valuable tool for property investors and developers — but in 2025, it’s more versatile, competitive, and strategic than ever before. As interest rates fluctuate, lenders become more specialised, and property market conditions shift, bridging loans are playing a central role in helping individuals and businesses move fast on time-sensitive opportunities.

Whether you're looking to buy before you sell, refurbish a property, or cover a short-term cash flow gap, understanding how bridging finance works in 2025 is critical — and that’s exactly what we’re here to break down.

At FundMyProperty, we simplify the bridging process by connecting you to the right lenders, fast. Here’s everything you need to know about how bridging loans work today, what’s changed, and how we help you secure the best deal.

What Is Bridging Finance?

A bridging loan is a short-term loan typically used to "bridge the gap" between two financial transactions — most commonly between the purchase of a new property and the sale of an existing one. But its uses have expanded significantly.

Today, bridging finance is used for:

Fast property purchases (especially at auction)
Buying uninhabitable or unmortgageable properties
Funding refurbishments or conversions
Raising short-term capital
Bridging while longer-term finance (like a mortgage or development loan) is arranged

These loans are usually secured against property, and terms typically range from 3 to 18 months.

Bridging Finance in 2025: What’s New?

While the core concept of bridging finance hasn’t changed, the market in 2025 is markedly different from just a few years ago. Here’s what’s shaping it:

1. More Lenders, More Flexibility

The market is more competitive than ever, with over 150 bridging lenders in the UK alone — from specialist boutique firms to large institutional lenders. This has driven innovation, with lenders offering more tailored solutions such as:

Refurb-to-let bridging
Bridge-to-sell loans
Auction finance with pre-approval
Light and heavy refurb bridging

2. Smarter Underwriting

AI-driven technology now allows lenders to process applications faster and with more accuracy. Borrowers with complex income structures or imperfect credit histories can now find options that were once out of reach.

3. Increased Regulatory Scrutiny

While most bridging remains unregulated (particularly for investment properties), the FCA has ramped up guidance around transparency and borrower protection. Working with a trusted intermediary like FundMyProperty ensures you remain compliant and protected.

4. Higher Interest Rates, But Smarter Structuring

Interest rates in 2025 are higher than the ultra-low rates of previous years, but bridging lenders have responded by offering:

Rolled-up interest (paid at the end of the term)
Serviced interest (monthly payments)
Retained interest (deducted from the loan advance)

This flexibility helps borrowers tailor repayment to suit cash flow and exit strategy.

How Much Can You Borrow?

Bridging loans are usually calculated based on Loan-to-Value (LTV) ratios. In 2025, typical LTVs are:

Up to 75% LTV for standard residential bridging
Up to 70% LTV for auction and light refurb
Up to 65% LTV for commercial properties or heavy refurbishments

If you’re using bridging to fund a purchase and refurbishment, many lenders will also cover 100% of the refurbishment costs — subject to the overall GDV (Gross Development Value) supporting the loan.

Common Use Cases for Bridging Loans

Bridging is a strategic tool that solves time-sensitive problems. Here are some of the most common use cases we see at FundMyProperty:

1. Auction Purchases

With only 28 days to complete, auction properties are a classic fit for bridging. We can pre-approve auction funding so you're ready to bid with confidence.

2. Chain Break

If your buyer pulls out and you’re about to lose a purchase, bridging helps you complete and then sell your current home in your own time.

3. Unmortgageable Properties

Buying a property without a functioning kitchen or bathroom? High street lenders won’t touch it — but bridging lenders will.

4. Light and Heavy Refurbishment

Bridge-to-let loans allow you to refurbish and refinance on a higher valuation — increasing your long-term rental yield.

5. Planning Gain or Development Prep

Secure land or property quickly while waiting on planning permission. Once approved, you can refinance or sell with enhanced value.

How FundMyProperty Makes Bridging Easy in 2025

Navigating the modern bridging market can be complex. With so many lenders, product types, and underwriting quirks, it’s easy to waste time or miss better deals.

That’s why FundMyProperty exists — to remove the friction.

Here’s how we help:

1. Access to the Right Lenders

We work with a curated panel of specialist bridging lenders, ranging from flexible private lenders to institutional powerhouses. Whether your deal is straightforward or complex, we’ll match you with lenders who actually want your type of business.

2. Speed Without Sacrificing Quality

We understand that time kills deals. That’s why we prioritise speed — delivering indicative terms within 24–48 hours, and often achieving completions in under 2 weeks.

3. Transparent Comparisons

We give you side-by-side comparisons of lender offers — clearly showing the interest rate, fees, repayment structure, and conditions — so you can make a confident decision.

4. Support From Real Experts

Our experienced advisors will help you package your application, gather documents, and proactively manage the process. We speak the lender’s language and make sure your case moves forward smoothly.

5. Smart Application Process

Apply once. Get matched across multiple lenders. Our smart tech saves you hours of paperwork, emails, and waiting.

6. Exit Strategy Planning

We help you think ahead. Whether you plan to sell, refinance, or develop further, we’ll help structure the loan with the right exit in mind — to avoid costly extensions or rushed sales.

The Bottom Line

Bridging finance in 2025 is more powerful and accessible than ever — but only if you know where to look and how to apply. It’s no longer just a last resort; it’s a smart, strategic solution for developers, investors, and landlords who need speed, flexibility, and control.

At FundMyProperty, we’re bridging specialists. We don’t just help you find a lender — we help you get the right deal, faster, and with full confidence.

Neil Sahota