Bridging loans are short-term interest only loans that can “bridge” the gap between two periods such as buying a new property before you have sold your existing one.

Bridging loans can also be used in other areas of business where you need finance before releasing some capital elsewhere such as purchasing stock or machinery. They are also useful if you’re buying a property at auction or if you’re doing up a dilapidated property that an ordinary mortgage lender wouldn’t look at.

They can usually be arranged quickly often within few days – but for all theses advantages there is a cost, and they can be a little more expensive than longer term forms of finance

Here the pros and cons of bridging loans.


1. Speed. Bridging loans can normally be arranged quickly. In some cases, bridging finance can be arranged within a matter of hours and the speed is a big part of their appeal.

2. Payment levels. If you opt to have the interest retained you don’t have to pay interest until the whole loan is repaid.

3. Flexibility. Loans are flexible and can be paid off as soon as you’re able to.


1. Higher interest rates. You would typically pay more than typical mortgage rates

A good commercial finance expert like M3, will spend time with you ensuring you have a strong exit strategy – this is vital when taking out a bridging loan.

They will also ensure you have a plan for repaying the loan if you Plan A falls through and should consider worst case scenario such as, if a property won’t sell on the open market, could you put it into auction or rent it out?

You MUST ALWAYS have an exit strategy with a bridging loan. At M3 we will work with you to ensure you have both Plan A and Plan B strongly plotted out before taking out your bridging loan.

Find out more about our bridging loans here

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M3 Commercial Finance are authorised and regulated by the FCA (FRN:822045) and are appointed representatives of White Rose Finance Group Ltd (FRN: 630772).

Please make borrowing decisions carefully, property or other assets offered as security may be at risk if you cannot keep up with repayments.

* 0% broker fees offered to new clients on first deal only. Terms and conditions apply