Bridging Loans

How Do Bridging Loans Work? Costs, Process & UK Guide

How Do Bridging Loans Work?

It sounds simple, yet the mechanics and costs catch plenty of borrowers out. Interest is charged monthly rather than annually, fees stack up quickly, and the lender will only sign off the funds once you present a rock-solid “exit strategy” showing how the loan will be repaid – usually through sale, refinancing or another lump sum.

This guide strips away the jargon. You’ll learn exactly how bridging loans work, the different types on offer, the step-by-step application process, every cost you’ll face, eligibility rules, repayment options, advantages, risks and the key alternatives. By the end, you’ll know whether rapid bridging finance fits your situation — or if a cheaper route will serve you better.

What Is a Bridging Loan? Definition and Core Principles

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A bridging loan is a short-term, interest-bearing facility secured against property or land that “bridges” the gap between cash going out and cash coming in. Terms range from a single month up to 12–24 months, after which the balance – capital and any accrued interest – is cleared in one lump sum. Because the money is secured, lenders focus less on income multiples and more on the strength of the security and the credibility of your exit strategy.

In the UK there are two regulatory categories:

• Regulated bridging loan – the security is, or will become, the borrower’s main residence. These loans fall under the Financial Conduct Authority (FCA) Mortgage Conduct of Business rules, giving borrowers extra protection and a maximum 12-month term.
• Unregulated bridging loan – used for investment, business or development purposes. While reputable lenders still follow best practice, there is no FCA safety net, paperwork is lighter and terms can stretch to 24 months.

Borrowers can choose how interest is handled:

1. Rolled-up (deferred) – interest accrues each month but nothing is paid until redemption.
2. Retained – the lender deducts the forecast interest from the advance on day one; if you repay early, unused interest is refunded.
3. Serviced – you pay the monthly interest from your own pocket, keeping the loan balance static.

Understanding these mechanics is the first step in answering the wider question of how do bridging loans work in practice.

Essential Terminology Explained

• Open bridging loan – no fixed repayment date; useful when the sale completion date is uncertain.
  Example: You’ve accepted an offer on your home but the chain is still open-ended.
• Closed bridging loan – a defined end date, usually backed by an exchanged contract.
  Example: Your buyer has exchanged and completion is set for 10 weeks.
• First charge – the bridge is the primary mortgage on the property, giving the lender priority if things go wrong.
  Example: You own a property outright and take a first-charge bridge to fund an auction purchase.
• Second charge – the bridge sits behind an existing mortgage, increasing lender risk and price.
  Example: You remortgage later to add an extension but need funds now.
• LTV (loan-to-value) – percentage of the property’s value you’re borrowing. Most residential bridges cap at 70–75% first charge or 65% second charge.
• Net vs gross loan – gross includes fees/retained interest; net is what lands in your bank account.
• Exit strategy – the documented plan for repaying the loan, e.g. confirmed sale, refinance offer.
• Drawdown – the moment funds are released, usually to your solicitor’s client account.

Bridging vs Other Finance Options

A bridge isn’t the only way to plug a funding gap, but it is usually the fastest. The table below highlights the main differences.

Feature	Bridging Loan	Standard Mortgage	Secured/Homeowner Loan	Personal Loan	Credit Card
Typical completion speed	3–14 days	6–12 weeks	2–4 weeks	1–5 days	Instant
Maximum term	12–24 mths	25–40 yrs	3–15 yrs	1–7 yrs	Revolving
Indicative monthly cost	0.55–1.5%	0.3–0.5% (APR 4–6%)	0.5–1.2%	0.7–1.2%	1.5–2.5%
Security required	Yes (property)	Yes (property)	Yes (property)	Usually none	None
Early repayment charge	Rare	Common (2–5 yrs)	Sometimes	None	None

Speed and flexibility underpin the appeal of bridging loans, but that convenience comes at a premium, making it vital to weigh up alternatives before committing.

Types of Bridging Loans Available in the UK

Not all bridges are built the same. Lenders slice the market into distinct “types”, and each one shifts the speed, paperwork, pricing and level of protection you receive. Understanding which category your situation falls into is the next step in deciding how do bridging loans work for you personally.

Open vs Closed Bridging Loans

An open bridge has no pre-agreed redemption date, while a closed bridge does.

Typical facts

• Open term: 3–12 months, occasionally up to 18 months
• Closed term: usually tied to a contract date and capped at 6–9 months
• Pricing: closed loans are 0.05–0.15 percentage points cheaper per month because the lender sees less timing risk

Pros & cons

	Pros	Cons
Open bridge	– Flexible if your sale date is uncertain – Easier to secure when a chain is wobbling	– Higher rate – Lender may demand extra progress reports
Closed bridge	– Lower interest – Clear exit keeps stress down	– You must prove contracts exchanged or refinance offer in place; no room for slippage

Regulated vs Unregulated Bridging Loans

A loan is regulated when the security is, or will become, your main home. Anything else – buy-to-let, commercial units, land with planning – is unregulated.

What changes?

• FCA oversight: regulated deals follow MCOB rules, KFI documents and a maximum 12-month term.
• Advice requirement: a qualified mortgage adviser must recommend the product.
• Speed: unregulated bridges can fund in as little as three days because disclosures are lighter.
• Price: regulation adds compliance costs, so regulated rates sit 0.1–0.2 ppt higher.

First Charge vs Second Charge

The “charge” describes a lender’s priority if the property is sold to repay debt.

• First charge: the bridge is the only or primary mortgage.
  • Max LTV: 70–75 %
  • Typical rate: 0.55–1.0 % per month
  • Use case: buying at auction with an unmortgaged property as security.
• Second charge: the bridge sits behind an existing mortgage.
  • Max LTV: 60–65 % (combined with first mortgage)
  • Typical rate: 0.8–1.3 % per month due to higher risk
  • Use case: releasing equity for a loft conversion without disturbing a low-rate first mortgage.

Because the senior lender must grant consent, second-charge bridges can take a few extra days to complete.

Residential, Commercial & Development Bridging

Bridging finance also varies by the nature of the security.

Loan type	Who uses it	Max LTV (1st charge)	Rate band (pcm)	Quirks
Residential	Home-movers, chain-breakers	70–75 %	0.55–1.0 %	Regulated if owner-occupied
Commercial	Investors buying offices, shops, mixed-use	65–70 %	0.7–1.2 %	Valuers focus on lease length & yield
Light development	Refurbs where structure stays intact	70 % day-one + 100 % of works	0.7–1.1 %	Funds released in stage draws
Heavy/ground-up development	Conversions, new-build sites	60–65 % GDV	0.9–1.4 %	Lender appoints a monitoring surveyor

Each sector has specialist lenders who tailor underwriting to its risks – for example, permitting interest to roll until the completed units are sold on a heavy refurbishment scheme.

Selecting the right loan type – and lender fluent in that niche – is central to getting your bridge approved quickly and priced keenly.

Common Reasons to Use a Bridging Loan

Speed is the ace card of bridging finance. When timing pressures make traditional mortgages or personal loans unworkable, a short-term bridge can unlock funds in days, not months. Below are the scenarios UK borrowers most frequently cite when asking their broker how do bridging loans work in practice and, crucially, whether the costs are justified.

Buying a New Home Before Selling the Old One

You spot the perfect forever home, but your current property is still on the market. A bridging loan lets you:

• Put down the full purchase price or deposit immediately
• Avoid temporary rentals or living with relatives
• List your existing home at a sensible price rather than a fire-sale figure

Typical timeline

1. Offer accepted on new house
2. Bridge completes within 7–14 days, funds sent to the seller’s solicitors
3. Old property completes and repays the bridge, usually inside six months

With a clear sale agreed, many lenders will discount the rate by 0.05–0.10 ppt because the exit risk is lower.

Property Auction Purchases

Auction contracts demand completion within 28 days, sometimes 20. High-street lenders simply can’t process a full mortgage that fast. Bridging loans solve the deadline problem by:

• Funding up to 75 % of the hammer price (plus buyer’s premium)
• Releasing money once legal packs and a desktop valuation are reviewed
• Allowing you to refinance onto a cheaper mortgage once the keys are yours

Pro tip: line up solicitor, ID checks and proof of funds before auction day so the lender can issue terms the moment you win the bid.

Refurbishment, Conversion or Development

Mortgages rarely cover properties deemed “uninhabitable” (no kitchen, bathroom, or with structural issues). Specialist development bridges will:

• Advance up to 70 % of the purchase price and 100 % of build costs
• Release works funds in staged drawdowns verified by a monitoring surveyor
• Roll up interest until the project is finished and refinanced or sold

The facility can be structured as light or heavy refurb, affecting valuation method and monitoring frequency.

Releasing Equity for Short-Term Cash Needs

Sometimes you need a lump sum fast but don’t want to remortgage on a long tie-in. Second-charge bridging can free equity for:

• Settling an unexpected tax bill
• Funding a time-sensitive business opportunity
• Paying a divorce or probate settlement ahead of asset liquidation

Because the original mortgage remains untouched, you keep any favourable fixed rate already in place.

Preventing Chain Collapse

If a buyer pulls out days before completion, the whole chain can fall apart. A short-term bridge can temporarily cover the missing proceeds, allowing:

1. Your purchase to complete on schedule
2. The chain behind you to stay intact
3. Time to resell your original property without panic discounts

Estate agents and conveyancers increasingly keep a panel of bridge lenders on standby for exactly this contingency.

Step-by-Step Process: From Application to Completion

Bridging lenders pride themselves on speed, but the deal still follows a set workflow. Knowing the steps in advance helps you line up documents, avoid delays and keep costs down. Below is a typical seven-stage roadmap that shows how bridging loans work from first enquiry to money hitting your solicitor’s client account – and beyond.

1. Define Your Funding Gap & Exit Strategy

Before a lender looks at credit files or valuations, they want two numbers:

• How much do you need, net of fees?
• How, exactly, will you clear the balance?

Expect to supply evidence such as a memorandum of sale, a buy-to-let mortgage agreement in principle (AIP) or documented inheritance. The clearer the exit, the sharper the rate you’ll be offered.

2. Gather Documents & Property Details

Speed hinges on paperwork. Have the following ready in PDF form:

• Proof of ID and address (passport, driving licence, utility bill)
• Last three months’ bank statements
• Title register and plan (download from Land Registry)
• Planning permission and build schedule (for development cases)
• Signed authority for a credit search

Send everything in one bundle to prevent “drip-feed” chases that can add days.

3. Choose a Lender or Specialist Broker

You can go direct to a lender, but most borrowers use a whole-of-market broker who can:

• Short-list funders comfortable with quirky properties or adverse credit
• Negotiate bespoke pricing on larger loans
• Coordinate solicitor and valuer instructions under one roof

Broker fees vary from 0% (paid by lender) to 1% of the gross advance; always check whether VAT is added.

4. Valuation & Underwriting

Once an agreement in principle is issued, the lender instructs a valuation:

• Desktop (£0–£200) for standard houses under 70% LTV
• Drive-by (£200–£350) when access is tricky
• Full survey (£400–£1,000+) for higher risk or heavy refurbishments

Meanwhile, underwriters verify title, check planning constraints and run credit searches. Turnaround is typically 24–72 hours from receipt of the valuer’s report.

5. Review the Formal Loan Offer

The binding Facility Letter details: interest rate, method (rolled-up/retained/serviced), default rate, minimum term, extension fees and any exit covenants. Query anything you don’t understand; once signed, the clock – and interest – starts.

6. Legal Work & Drawdown

Bridging solicitors work at break-neck pace. You’ll choose:

• Dual representation (one firm acts for borrower and lender) – cheapest, fastest, but limited borrower advice.
• Separate representation – each side has its own solicitor; costs more but offers full counsel.

Key tasks include an OS1 priority search to “lock” the title, redemption statement (if second charge) and drafting the legal charge. On completion day, funds transfer to your solicitor, who sends them on to the vendor or your bank account.

7. Managing the Loan During the Term

Even with rolled-up interest, lenders like updates. Expect:

• Monthly or quarterly progress calls
• Site visits for development loans, paid from your contingency pot
• Reminders three months before maturity to trigger your exit plan

Missed deadlines invite extension fees (0.2–1% of the balance) or, in worst cases, default interest upward of 2% per month. Stay proactive, evidence marketing or refinance milestones and you’ll exit smoothly – often ahead of schedule, saving a chunk of interest in the process.

Bridging Loan Costs Explained: Interest, Fees & Hidden Extras

Borrowers often focus on the headline monthly rate, yet that is only one slice of the overall bill. When you tot up facility fees, valuation, legal work and exit charges, the true cost of how do bridging loans work can land 2–4 % higher than the teaser figure suggests. This section breaks down every pound that can appear on your completion statement so you can budget accurately and avoid nasty surprises.

Interest Rate Structures

Bridging rates are quoted monthly, not annually. A “0.75 % pm” loan therefore equates to roughly 9.3 % APR once compounding and fees are factored in.
Ways lenders calculate it:

• Rolled-up – interest accrues and is added to the balance each month; nothing leaves your bank until redemption.
• Retained – the lender withholds the forecast interest from the advance on day one, refunding any unused portion if you repay early.
• Serviced – you pay loan_amount × monthly_rate every month, keeping the capital static and lowering compounded cost.

Example: £250,000 × 0.75 % = £1,875 interest each month; over a 9-month rolled-up term that snowballs to £17,606 because each month’s figure is calculated on a growing balance.

Upfront Lender Fees

Most funders levy a percentage-based facility fee plus flat admin charges:

• Arrangement / facility fee: 1 – 2 % of the gross loan (added to the balance).
• Assessment / application fee: £295 – £995, covers credit checks and file creation.
• Funds transfer fee: £25 – £50 for CHAPS on completion day.

Because these fees are usually capitalised, they, too, attract interest – an often-missed cost driver.

Professional & Third-Party Costs

You pay the professionals directly and must have cash on hand; they are not normally rolled into the loan.

Service	Typical range	Notes
Valuation – desktop	£0–£200	Low LTV, standard houses
Valuation – drive-by	£200–£350	When access limited
Valuation – full survey	£400–£1,000+	Higher risk or rural assets
Monitoring surveyor (development)	£500 set-up + £150 per visit	Deducted from drawdowns
Borrower’s legal fees	£800–£1,500	Dual representation cheapest
Lender’s legal fees	£600–£1,200	Often paid on account upfront

Add courier, priority search or indemnity policy premiums if title quirks arise.

Exit & Redemption Fees

Leaving early is allowed, but rarely free.

• Redemption / discharge fee: £95–£295 for closing the account.
• Exit fee: 1 % of the balance on some products, though many residential bridges no longer charge this.
• Minimum interest period (MIP): interest for, say, the first three months payable even if you clear on day 30.
• Extension fee: 0.2–1 % of the balance if your exit slips beyond the agreed term.

Failing to redeem on time can trigger default interest of up to 2 % per month, so build contingency.

Worked Cost Illustration

Scenario – Purchase at auction for £350,000; borrower needs 70 % LTV first-charge bridge over 9 months, rolled-up interest, 0.75 % pm, 2 % facility fee.

Gross loan
Purchase advance: £350,000 × 70 % = £245,000
Facility fee: £245,000 × 2 % = £4,900
Initial balance: £249,900

Interest
Rolled-up over 9 months: approx £18,000

Third-party costs (cash)
Valuation £500, borrower’s solicitors £1,000, lender’s solicitors £800

Total repayable at month 9
£249,900 + £18,000 = £267,900

Effective APR ≈ 10.4 % once all fees are annualised.

Knowing every line item up front allows you to compare lenders like-for-like and ensure the project profit – or your onward sale price – comfortably covers the final redemption figure.

Eligibility Criteria & How Lenders Assess You

Bridging lenders don’t use the same income-multiple tick boxes as high-street banks. Instead, they apply a property-first approach: Is the security solid and can the borrower repay on time? Understanding these yardsticks is key to working out how do bridging loans work for your own circumstances.

LTV & Security Requirements

Loan-to-value is the first gatekeeper.

• First charge: 70-75 % of the open-market value (OMV) on standard houses and flats; occasionally 80 % if you add extra collateral.
• Second charge: 60-65 % combined LTV once the existing mortgage is included.
• Specialist assets: commercial units, land, or heavy refurbs may be capped at 60-65 % because resale is harder.

Clean, easily saleable property attracts the best pricing. Lenders dislike short leases, non-standard construction and agricultural ties unless the rate reflects the exit risk.

Credit Profile & Borrower Experience

A perfect credit score helps, but it isn’t the be-all. Most funders will:

• Pull a soft credit search at initial enquiry, escalating to a hard check on application.
• Accept previous defaults or CCJs if they are satisfied the exit repays the debt and there are no outstanding bankruptcy issues.
• Price for risk: adverse credit typically pushes the monthly rate up 0.1–0.3 ppt.

Developers or serial investors should document completed projects, profit margins and any personal guarantees already in force; a credible track record can override middling credit.

Evidence of Exit Strategy

No exit, no bridge. You’ll be asked for:

• Sale exit: memorandum of sale, signed contract, or chain details from the estate agent.
• Refinance exit: mortgage agreement in principle plus projected rental income or payslips to pass affordability.
• Other liquidity: probate paperwork, company share purchase agreement or pension payout schedule.

Lenders stress-test each exit by adding a safety buffer (often 5-10 % to sale price or refinance LTV) so you still clear the balance if the market dips.

Timeframes & Speed Factors

Headline adverts promise funding in 48 hours, yet the median completion sits around 10–14 days. Speed hinges on:

1. Valuation slot availability – rural or unusual properties may wait a week for a surveyor.
2. Legal complexity – unregistered titles, lease extensions and restrictive covenants all slow the solicitor.
3. Borrower responsiveness – every missing bank statement or unsigned ID form knocks another day off the clock.

Where everything lines up, regulated bridges can close in five days and unregulated in three. Build a time buffer, though: pushing to the wire inflates stress and leaves no runway if the exit timetable slips.

Repayment & Exit Strategies: How to Pay Back a Bridging Loan

A bridging facility ends in one decisive moment: the day you redeem the capital and any accrued interest in a single transfer. Every lender will quiz you in detail about that future payment before releasing a penny, because a solid exit is the only real answer to the broader question of how do bridging loans work and succeed. Below are the four exit routes UK borrowers rely on most – plus a reality-check if things go off-script.

Selling the Secured Property

The simplest and most common strategy is to sell the asset that’s carrying the charge. To avoid last-minute drama:

• Put the property on the market the same week the bridge completes; don’t wait for the “perfect” time.
• Choose an estate agent who understands your deadline and prices realistically, not optimistically.
• Keep a cushion: the sale proceeds must cover the loan balance and all fees, so factor in agent commission, SDLT on your onward purchase, and moving costs.
• Ask your solicitor to order redemption figures at exchange so the completion statement is ready to run.

Bridging lenders usually set the loan term to match your planned completion window, adding at least one month’s grace.

Refinancing onto a Long-Term Mortgage

When you intend to keep the property, refinancing wipes out the bridge and swaps high monthly interest for a low APR mortgage.

1. Obtain a Decision in Principle before or immediately after drawdown.
2. Check “seasoning” rules: many mainstream lenders insist you’ve owned the property for six months before remortgaging – specialist BTL lenders are more flexible.
3. Book the valuation early; if the refurb has added value, supply before-and-after photos and receipts to support the uplift.
4. Allow six to eight weeks for completion so you’re not forced into an expensive bridge extension.

Selling an Alternative Asset or Receiving Lump Sum Funds

Inheritance payments, business dividends, bonus schemes or a forthcoming portfolio sale can all act as exits. Lenders will want:

• Documentary evidence (probate grant, signed share-sale contract, accountant letter).
• A timeline showing when cash clears your account.
• A contingency if the sum is delayed (e.g., second-charge on another property).

Because this route carries more uncertainty than a property sale, expect a slightly higher rate or lower LTV.

Contingency Planning for a Failed Exit

Even the best-laid plans can unravel. If your buyer pulls out or a refinance is declined:

• Alert the lender immediately; hiding the issue risks default interest of 2 %+ per month.
• Negotiate an extension (0.2–1 % fee) or a switch to serviced interest to buy extra time.
• Consider a “re-bridge” with another lender at a lower LTV if property values have risen.
• In worst cases, agree a controlled sale to avoid repossession and preserve your credit profile.

Having a credible Plan B – and maintaining honest communication – keeps costs contained and stress levels manageable.

Advantages, Risks & Alternatives

Bridging finance sits in a niche of its own – faster and more flexible than a mortgage, but dearer and risk-heavier too. Weighing the upsides against the potential pitfalls, and comparing them with other funding routes, is essential before you sign a facility letter.

Key Benefits to Borrowers

• Speed of completion – funds can land in the solicitor’s client account within a working week, preserving auction deadlines or fragile chains.
• Flexibility on income – lenders focus on the asset and exit strategy, so self-employed, recently retired or credit-impaired applicants can still qualify.
• No long tie-ins – most facilities run 3–12 months with no early repayment charge; clear early and you pay interest only for the days used.
• Multiple property uses – habitable, uninhabitable, commercial or land with planning permission can all be accepted, whereas mainstream mortgages often refuse.
• Chain-saving power – a bridge can underwrite your onward purchase even if a buyer drops out last minute, protecting survey fees and removal bookings.

These attributes make bridging loans uniquely suited to transactions where timing matters more than the absolute cost of borrowing.

Main Drawbacks & Risks

• High interest and fees – monthly rates of 0.6–1.5 % plus arrangement, legal and valuation costs quickly dwarf standard mortgage pricing.
• Short repayment window – if your exit stalls, extension fees (0.2–1 %) or default interest (up to 2 % pm) kick in.
• Repossession risk – the lender holds a legal charge; prolonged default can lead to forced sale and damage to your credit profile.
• Complex legal work – dual representation can limit independent advice; separate solicitors add expense and time.
• Market exposure – a property downturn could erode sale proceeds or push your refinance LTV over lender limits.

Bridging therefore rewards good planning but punishes complacency – your exit must be realistic, documented and have a fallback.

Alternatives Worth Comparing

Sometimes a slower, cheaper product will do the job. Sense-check the options:

Alternative	Typical Speed	Cost Level	Pros	Cons
Let-to-buy or porting existing mortgage	4–8 weeks	£	Retain low fixed rate; no extra legal charge	Porting criteria strict; chain still at risk
Secured/homeowner loan	2–4 weeks	££	Fixed term up to 15 yrs; predictable payments	ERCs common; may cap at 70 % LTV combined
Personal or business line of credit	1–5 days	££	Unsecured; minimal legal work	Lower limits; relies on strong credit score
Vendor finance or delayed completion	Negotiated	£	No lender fees; flexible terms	Seller must agree; not viable for most purchases
Family loan / gifted deposit	Varies	£	Interest-free in many cases	Strains personal relationships; must satisfy lender’s gifted-fund rules

If one of these routes meets your timeframe and loan size, you’ll likely save thousands in charges and sleep easier. When it doesn’t, a bridging loan remains the go-to tool – as long as the exit stack up and the higher cost is baked into your budget.

Bridging Loan FAQs

Below are concise, plain-English answers to the questions UK borrowers Google most. Treat them as a starting point, not personal advice.

What is the downside of a bridge loan?

Cost and risk. Monthly interest of 0.6 – 1.5 % plus arrangement, legal and valuation fees make bridging far pricier than a mortgage. The term is short (usually 12 months or less), so if your exit fails you could face extension fees, default interest or, in extremis, a forced sale of the security property.

How much interest do you pay on a bridging loan?

Rates are quoted monthly. Typical residential deals run from 0.55 % to 1.0 % per month; specialist or second-charge loans can climb to 1.5 %+. Multiply the rate by the expected months and remember that rolling up interest means you pay interest on interest, nudging the effective APR into double digits.

How do you pay back a bridging loan?

You repay capital and all accrued interest in one lump sum on or before the agreed redemption date. Common sources are the proceeds of a property sale, a remortgage onto a long-term product or another confirmed cash event (inheritance, bonus, business sale). Your solicitor sends the redemption money directly to the bridging lender.

Is it a good idea to get a bridging loan?

It can be – when speed is essential and you have a watertight exit strategy. Auction buyers, chain-breakers and refurb developers use bridging successfully every day. If cheaper finance can meet your deadline, or if your exit is speculative, a bridge is probably the wrong tool.

Can I get a bridging loan with bad credit?

Often, yes. Lenders focus on the property’s loan-to-value and the credibility of your exit more than on credit scores. Historic defaults or CCJs are usually acceptable, but expect a higher rate (add 0.1 – 0.3 % per month) and a lower maximum LTV – around 60–65 % for first charges and 55–60 % for second charges.

Final Thoughts on Using Bridging Loans Wisely

A bridging loan is neither hero nor villain; it’s just a rapid, property-backed tool. Use it well and you keep a chain intact, grab an auction bargain or finish a refurbishment that turbo-charges value. Use it blindly and the high interest, fees and tight deadlines can bite hard.

Before you sign, tick off four boxes:

1. Clarity – know exactly how much you’ll owe, including rolled-up interest, legal and exit charges.
2. Certainty – have a documented exit strategy (and a back-up) that comfortably repays the balance.
3. Comparison – weigh the bridge against slower but cheaper options such as a let-to-buy mortgage or secured loan.
4. Counsel – take independent legal and financial advice; a good broker or solicitor will spot pitfalls you’ve missed.

If you’re selling in Chepstow, Caldicot, Newport or Cwmbran or surrounding areas have a look at Lenay Krowitz Personal Bespoke Estate Agent free, no-obligation valuation tool.