Bridging loans are becoming increasingly popular because of their flexibility and the speed at which you can secure finance for property or business needs. It’s hardly surprising that they are popular because they can be arranged quickly and are flexible for short-term loans.
According to a report in the Independent newspaper, the Bridging & Lending Developers Association (BDLA) expect the value of UK bridging loans to top £12.2 billion in 2025
The fact properties sold at auction have risen in the past 12 months could have something to do with their increasing popularity.
Latest figures show that in October 2025 the number of properties sent to auction were 2.7% higher than the same period the previous year and the value of sales climbed by more than 7%.
Step-by-step guide to apply for a bridging loan
As they are such a great way to secure short-term funding, it’s no surprise that bridging loans are popular but how do you apply for a bridging loan? Our handy step-by-step guide will help you.
Is a bridging loan right for you?
The first step is to decide if a bridging loan suits your needs. Remember, bridging finance is short-term borrowing and interest rates are higher. If you’re buying property, don’t plan on a bridging loan in place of a mortgage.
If a bridging loan is right for you, remember you need an exit plan. For example, it could be that you pay once your current property sells or it might be when you find a mortgage deal that’s right for you. Either way, you need to work out that exit strategy. This blog gives you a host of strategy examples.
Gather your documents
You’ll need to get relevant documents ready before you apply. It’s better to have them to hand so you don’t slow the process. Typically, you’ll be asked for:
- Proof of ID, such as a driving licence
- Proof of your address, such as a utility bill
- Details of the property you’re hoping to buy
- Evidence of your exit strategy
- Planning or renovation quotes if your loan is to refurbish a property
We’ve looked in detail at the documents required in an earlier blog.
Find a broker or get quotes
No matter what you buy in life, you should always look for the best deal. You can get quotes from lenders but many people prefer to use a broker. A broker often has access to deals not available to you if you’re searching on your own and a broker’s expertise and knowledge can often save a lot of time, which might affect your chances of securing your loan or making a purchase.
We are a broker and you can speak to our experienced team if you’re considering applying for a bridging loan.
Get a Decision in Principle
Many lenders give you a Decision in Principle – or a DIP – after they review your paperwork. It confirms the terms they will likely offer, providing legal checks and a valuation is approved. It is useful to have it in place before bidding for a property at auction or if you need to show vendors that you have access to funding.
Valuation and underwriting
Your lender will arrange for a valuation of the property you plan to use for security. Once that has been done, underwriting checks follow. These confirm the loan-to-value you’re being offered, your borrower details and your exit strategy. Ensuring you and your solicitor react quickly to responses helps speed up the process.
Legal work
The next stage when applying for a bridging loan is that the lender issues a formal offer. You will need your solicitor to check the offer and carry out property searches, if they are applicable. They should then complete the legal paperwork. So, expect there to be fees and lender fees to pay.
Drawdown
Once everything is in place and the completion has been legally made, the funds will be released. Drawdown times can vary but if everything is in order they can be quickly done.
How to speed up approval
Getting everything prepared before you approach a broker or look for a bridging loan will help the speed of your application. Ensure your legal representatives, such as a solicitor, are aware that this is a bridging loan and you will need timely responses. Don’t delay in responding to their requests, either.
Using a specialist bridging broker, like Steel River Bridging Loans, will also help. Specialist brokers are used to auction timelines.
Also, be realistic about the value of the property and allow for a margin as valuations can differ from asking prices.
What else you need to know
You need to know that a bridging loan can be regulated or unregulated. Regulated loans are usually best if you are buying a property as your main home. That’s because they offer consumer protection.
Unregulated loans do not offer those protections and are usually used for investment or commercial purposes. Check out all you need to know about regulated and unregulated bridging loans here.
Don’t forget
- Remember that bridging loans offer funding in the short-term and interest rates are higher than standard mortgages. They are not for long-term use.
- Make sure you have a clear exit strategy before you apply. This can help speed up the process.
- And don’t forget to check out whether your finance is regulated or unregulated. You can check with your broker or the FCA if you’re not sure about your lender.
What should I do next?
If you are preparing to apply for a bridging loan, then you can contact our friendly team today. As a specialist broker, we can offer help and guidance to help you apply for the right bridging finance whether you are a consumer or commercial buyer.
