| Typical loan | Up to around 70–75% of the combined property value |
|---|---|
| Term | Usually up to 12 months (regulated) |
| Repaid by | Sale of your current home, sometimes plus a mortgage on the new one |
| Speed | Often a few weeks once valuation and legal work start |
| Regulated? | Yes, if you or close family will live in the property |
| Main risk | Your home sells late or for less, so costs rise |
How does buying before you sell work?
The lender takes security over your current home, the new home, or both. The loan funds the purchase and the costs. When your old home sells, the sale proceeds repay the bridge. If you need a long-term mortgage on the new home, we arrange that as part of the exit, so the two loans fit together from day one.
Because it is secured on a home you will live in, it is a regulated bridging loan. That means FCA consumer protections apply, the lender must check affordability and suitability, and the term is usually capped at 12 months.
What lenders look at
- The value of both properties and how much equity you have
- How realistic your asking price is, and how long similar homes take to sell locally
- Whether your home is already on the market or under offer
- How the new home will be financed long term, if a mortgage is needed
- Your ability to meet the costs if the sale is delayed
What does it cost?
Bridging is priced monthly and costs much more than a mortgage. Expect an arrangement fee (often around 2% of the loan), valuation and legal fees for both sides, and monthly interest. Interest is usually rolled up and repaid when you sell, so you do not make monthly payments, but the balance grows each month.
The biggest cost driver is time. Every extra month before your sale completes adds interest. That is why we plan around a realistic sale date, not a hopeful one. Use our bridging calculator to model figures, or the deal checker for an indicative picture of your case.
Alternatives worth considering first
- Agree a longer completion: some sellers will accept a delayed completion if you exchange quickly.
- Let to buy: keep your current home as a rental and remortgage it to release a deposit. See let-to-buy mortgages.
- A larger mortgage on the new home: sometimes possible if income supports both properties for a short period.
- Selling first and renting: slower and less convenient, but the lowest-cost route.
When bridging is not the right answer
We will tell you if bridging does not make sense. It is usually the wrong route if your home is likely to take a long time to sell, if the price is optimistic, if the cost would wipe out the benefit of the move, or if a delayed sale would leave you unable to meet the costs. Your home may be repossessed if you do not keep up repayments.
Check your dealIndicative borrowing, total cost and the questions a lender will ask, in about two minutes.
Open the deal checkerExample cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£1.6m regulated bridging loan at 39% LTV to save a chain in Hampstead
£595,000 bridging loan at 70% LTV to buy and extend a short-lease Kensington flat
Frequently asked questions
Can I buy a house before selling mine?
Often, yes. A regulated bridging loan secured on your current home, the new home or both can fund the purchase, and it is repaid when your sale completes. You need enough equity and a realistic plan to sell within the term, usually up to 12 months.
How much equity do I need to buy before I sell?
Most lenders lend up to around 70–75% of the combined value of the properties they take as security. The more equity you have, and the lower the total borrowing, the more lenders will consider you and the better the terms.
Do I have to make monthly payments on a bridging loan?
Usually not. Interest is commonly rolled up and repaid with the loan when your home sells. That keeps your monthly outgoings down, but the amount you owe grows each month, so a quick sale matters.
What happens if my house does not sell in time?
You may be able to extend the loan or refinance, but this is not guaranteed and costs rise. In the worst case the lender can repossess. That is why we test your sale plan and price before you commit, and talk to you early if the sale slows down.
Is buying before selling regulated?
Yes, if the loan is secured on a home that you or a close family member live in or will live in. Regulated bridging gives you FCA protections, and the lender must check the loan is affordable and suitable.
Important: Bridging and development finance are short-term, secured borrowing and can be expensive. You need a clear, realistic exit plan. Loans secured on a home you live in may be FCA-regulated; most others are not. Your property may be repossessed if you do not keep up repayments.