Bridging Finance: Is It the Key to Property Development Success?

Despite uncertainty over Brexit and the recent general election, fear-mongering about a property crash has proved unfounded. House prices in the UK rose by 1.4% in 2019 and 89 per cent of millennials aspire to own their own home. Property development is a thriving industry that continues to attract ambitious new entrepreneurs in growing numbers.

House building in England hit a 30-year high in 2019 and this trend shows no signs of slowing down with the Prime Minister, Boris Johnson, recently announcing plans for 1 million new homes and discounts for first-time buyers. There are also plenty of opportunities for property developers to snap up a bargain by scouting out refurbishment opportunities to resell at a profit.

But how can you seize these opportunities without huge amounts of capital behind you? How do successful property developers finance their first project and continue to expand their portfolio without a lottery win? Bridge loan financing can be a quick and flexible solution.

What Is a Bridging Loan?

Bridging loans are generally used by individuals or corporations to raise funds needed to purchase or refurbish a property. They are a short-term option for people looking to buy a new home before their current property sells.

Bridging loans can be an ideal solution for property developers who must act quickly to secure a prime property or piece of land ahead of the competition. They can also be used to fund the speedy resolution of unexpected issues that arise, allowing the developer to turn the property around quickly. Time is of the essence for developers and most aim to purchase, refurbish and resell properties within a strict time frame.

What Are the Benefits of Bridging Loans for Property Developers?


The property development sector is highly competitive and prime property moves quickly. Developers do not have the luxury of time when it comes to making a purchase. If a great opportunity arises, you can bet you’re not the only one to have spotted it.

If funds are tied up in a current project, a bridging loan is one of the fastest ways to raise the money needed to complete on a new property before the competition swoops in for the kill. Apex Bridging typically releases funding within seven days of your loan’s approval.


Bridging loan providers require much less information than other types of lenders, such as mortgage providers. Apex Bridging will consider all financial situations and no credit check is required, making it an extremely flexible option.

A bridging loan is tailored to the specific needs of an individual or company. It can be used for most types of property, from flats and houses to land and commercial units. Repayment terms can also be adapted as required, typically between 4 and 12 months. We pride ourselves on offering LTVs (Loan-To-Value) up to 80% — much higher than many providers.

Renovation Projects

Bridging loans are not just for purchasing property — they can also be a practical way for developers to fund renovation projects. Many high-street lenders will view this type of project as high-risk and reject any funding application they receive.

If traditional lenders refuse to fund your renovation, a bridging loan could provide the funds necessary to complete the project on time.

Purchasing Land without Planning Permission

In the eyes of traditional lenders, a piece of land without planning permission represents another high-risk project that many will refuse to approve a loan for.

A bridging loan involves significantly less red tape and can be used to fund the purchase of land. Once planning permission is secured, the developer can build on the land or sell it at a profit on the purchase price.

Access Funds While Awaiting a Mortgage

If you have arranged a mortgage on a property but need access to the funds more quickly, a bridging loan can plug the gap.

High street mortgages often take months to come through, whereas a bridging loan can be available within a week. Use a short-term loan if you need the funds immediately, then repay it when the mortgage is approved.

Purchase Property at Auction

Property auctions provide developers with a great opportunity to snap up a bargain with the potential for a huge profit. Speed is of the essence at an auction, perhaps more than any other type of purchase. Developers must be ready to exchange instantly.

Completion is usually required within 28 days of exchange (which takes place at the auction). A bridging loan — which can be secured in a matter of days — is one of the few realistic options to fund this kind of purchase.

Find out More Today

Apex Bridging can help you secure a bridging loan of between £100k and £2m quickly and professionally. We tailor finance solutions to suit individual circumstances and offer a higher LTV (up to 80%) than many other providers. There is no requirement for a credit check and we can often release funds within seven days of loan approval. We offer exceptional client service and are a trusted provider for property developers throughout the UK. Find out more about Apex Bridging and discover why you should choose us today.