When it makes sense
- Auction purchases: 28-day completion is not achievable on a commercial mortgage; it is routine on a bridge.
- A seller who will not wait three months for a bank.
- Property that needs work before it is lettable or usable: term lenders want a finished, income-producing or occupied building.
- A vacant investment property you will let first, then refinance on the rent.
- Change of use or planning being obtained before the term lender will lend.
- Buying before selling another property whose proceeds are the deposit.
How it works
A bridging lender advances up to 70% to 75% of the property's value (sometimes of the after-works value) for 6 to 18 months at 0.6% to 1% a month, interest usually rolled up, on the strength of the property and the exit. The exit is the commercial mortgage, and a good bridging lender wants to see it is realistic before they lend. When the property is ready (let, refurbished, planning granted), the commercial mortgage completes and repays the bridge.
What it costs
On £300,000 for nine months: interest around £22,000 to £27,000, arrangement 2% (£6,000), valuation and legal on both the bridge and the mortgage. Say £35,000 all in. That is the price of buying at auction 20% below market, or of securing premises the business needed. It is not the price of indecision.
The rules
- Line up the exit first. Get indicative terms for the commercial mortgage before you bridge. If no term lender will refinance the finished property, do not buy it.
- Budget the works and the time honestly, then add 20%.
- Watch the term. Overrunning a bridge is expensive (default rates, extension fees). Choose a term with slack.
- Regulated or not. If you will live in part of the property, the bridge is regulated and needs an FCA-authorised broker.
Our sister site British Bridging Company covers bridging in depth. The adviser handling your commercial mortgage can usually arrange both together, so the exit is certain before the bridge is drawn.
A note on the numbers. Rates, loan-to-value limits, fees and criteria are typical figures at the time of writing (2026). Commercial lending is priced case by case, so your own terms depend on the property, the business, the tenant and you. This is information, not advice, and not an offer of finance.
Quick answers
Can I bridge with no deposit?
Only with additional security covering the gap. Bridging lenders lend to 70% to 75% of value across all the security offered.
How fast can a commercial bridge complete?
Seven to fourteen days is common with a responsive solicitor and a clean title; some lenders do it in days for simple cases.
Ready to talk to someone who can actually arrange it?
Tell us about the property and the business, and a commercial finance adviser will come back with which lenders fit, what rate to expect and what they'll want to see. No fee for the conversation, no obligation.