Bridging Loans

A bridging loan is a short-term secured loan, typically lasting between 1 and 60 months, that provides fast access to capital against property or land. It is designed to "bridge" the gap between an immediate funding need and a longer-term financial solution such as a mortgage, property sale, or refinance.

For example, if you want to buy a new property before your current one has sold, a bridging loan provides the funds to complete the purchase now. Once your existing property sells, you use the proceeds to repay the bridge. The same principle applies to auction purchases, refurbishments, portfolio restructuring, and other time-sensitive situations where conventional lending is too slow or too restrictive.

The loan is secured against property (either the one being purchased, an existing asset, or both), and the lender's primary concern is the value of that security and the viability of your repayment plan, known as the "exit strategy."

Speed is one of the defining advantages of bridging finance, and it is central to how we operate at StatusKWO. We can provide indicative terms within hours of receiving your enquiry. Formal approval typically follows within 48 hours once we have the key information we need: the property details, your exit strategy, and the loan amount required.

From there, completion can take place in as little as 7 days for straightforward cases where the valuation is quick and the legal work is uncomplicated. More complex transactions, such as those involving multiple securities, corporate structures, or properties with title complexities, usually complete within 2 to 4 weeks. Throughout the process, your dedicated contact keeps you informed at every stage.

We lend up to 85% of the property's open market value. The exact LTV available to you will depend on several factors, including the type and location of the security, the strength of your exit strategy, and the overall risk profile of the transaction.

For borrowers who have additional security available, such as a second property or other asset, we can sometimes structure facilities that allow a higher effective LTV on the primary property by taking a charge over the additional security. This cross-collateralisation approach is particularly useful for investors who want to maximise their purchasing power.

We accept a range of exit strategies and assess each one on its merits. The most common routes we see include:

• Sale of the security property — the most straightforward exit, particularly for refurbishment and chain-break loans
• Refinance — onto a buy-to-let mortgage, commercial mortgage, or development finance facility
• Sale of another asset — such as a different property, shares, or other investments
• Incoming funds — from a business event, inheritance, pension drawdown, or legal settlement
• Development profit — on completion and sale of units in a development scheme

The key requirement is that your exit is realistic, well-evidenced where possible, and achievable within the loan term. If you are unsure whether your intended exit would be acceptable, we are always happy to discuss it before you formally apply.

Not necessarily. We offer two interest payment structures and can advise on which is most appropriate for your circumstances:

• Serviced interest: You make monthly interest payments throughout the loan term, similar to a standard mortgage. This reduces the total cost of the loan and is suitable for borrowers who have regular income or cash flow during the bridge period.
• Retained interest: The interest for the full term is calculated upfront and added to the loan balance. You make no monthly payments, and the entire balance (capital plus interest) is repaid when you exit. This is popular with borrowers who prefer to minimise outgoings during the bridge, for example during a refurbishment when the property is not generating rental income.

With retained interest, if you repay early, you only pay interest up to the redemption date, not the full retained amount. This means you are not penalised for exiting ahead of schedule.

Yes. This is one of the key advantages of asset-based lending. Unlike high-street banks and traditional mortgage lenders, we focus primarily on the quality of the security and the strength of your exit strategy rather than relying heavily on credit scoring.

While we do review credit history as part of our overall assessment, adverse credit events such as CCJs, defaults, missed payments, or previous bankruptcy do not automatically disqualify you. We take a pragmatic, common-sense approach to underwriting and consider the full picture: the property, the loan amount relative to its value, and how you intend to repay.

If you have concerns about your credit history, we encourage you to discuss your situation with us directly. We assess every application individually and can often find a workable solution where other lenders cannot.

We accept a wide range of property types as security for bridging loans. This flexibility is one of the major advantages of working with a specialist lender rather than a high-street bank. Acceptable security includes:

• Residential houses and flats (including new-build and ex-local authority)
• Commercial properties such as offices, retail units, and industrial premises
• Semi-commercial and mixed-use properties (e.g., a shop with a flat above)
• Houses in multiple occupation (HMOs)
• Land with planning permission (outline or full)
• Properties requiring refurbishment, including those that are currently uninhabitable
• Properties being purchased at auction

We lend on properties in England and Wales. If your property type is not listed above, or if you are unsure whether it would qualify, please get in touch. We assess every case individually and can often accommodate non-standard situations.

No. We do not charge early repayment penalties on our bridging loans. If you repay your loan ahead of the agreed term, you only pay interest up to the date of redemption. This is a significant advantage, particularly for borrowers whose exit strategy may complete sooner than expected.

For example, if you take a 12-month bridging loan but your property sells after 4 months, you pay interest for 4 months only. The remaining 8 months of retained interest (if applicable) is not charged. This can result in a substantial saving and is one of the reasons why our terms are considered borrower-friendly in the market.

Transparency is important to us, and we ensure that all costs are clearly communicated before you commit to anything. The typical fees associated with a bridging loan include:

• Arrangement fee: A percentage of the gross loan amount, typically payable on completion. This covers the cost of setting up the facility.
• Valuation fee: Paid to the independent RICS-qualified surveyor who values the security property. The cost depends on the property value and type.
• Legal fees: Both your own solicitor's fees and the lender's legal costs. These vary depending on the complexity of the transaction.
• Exit fee: Our exit fee structure is discussed and agreed upfront as part of your terms.

There are no hidden charges. We provide a full cost breakdown at the point of issuing terms so you can see the total cost of the facility before deciding to proceed. If you would like an estimate for your specific scenario, please use our online calculator or contact our team directly.

Both bridging loans and mortgages are secured against property, but they serve fundamentally different purposes and operate on different timescales. Understanding the distinction helps you choose the right product for your situation.

A mortgage is a long-term product, typically 25 to 35 years, with lower monthly interest rates. It is designed for ongoing property ownership, requires extensive affordability assessments, and can take 6 to 12 weeks (or longer) to complete. Mortgages are best suited to stable, long-term purchases where time is not a critical factor.

A bridging loan is short-term, typically 1 to 60 months, with higher monthly rates but far greater speed and flexibility. Approval and completion can happen in days rather than weeks. Bridging lenders are more flexible about the types of property accepted, the borrower profiles considered, and the corporate structures used. The trade-off is a higher monthly interest cost, which is why bridging loans are designed to be repaid quickly via a defined exit strategy rather than held indefinitely.

In practice, many borrowers use a bridging loan to acquire or refurbish a property quickly, then refinance onto a longer-term mortgage once the property is in a mortgageable condition.