Closed Bridging Loans — Fixed Repayment Date, Lower Rate

A closed bridging loan is a short-term loan secured against property with a fixed, evidenced repayment date agreed at the outset. The exit is known and supported by documentation — typically exchanged sale contracts with a completion date, or a confirmed refinance already progressing. Terms run from 1 to 12 months, matched to the exit date, and interest is usually rolled up or retained so there are no monthly payments.

The difference is entirely the certainty of the exit. A closed bridge has a confirmed repayment date with documentary evidence of how and when the loan will be repaid. An open bridge has an intended exit, but the timing is not yet fixed or evidenced to the same standard. Closed bridging is priced lower because the lender takes less risk, but it gives you a hard redemption date with little tolerance for slippage.

No — these are two separate things that are often confused. Closed or open describes the certainty of the exit. Regulated or unregulated describes who occupies the security property. A closed bridge can be either: a post-exchange chain break on your own home is closed and regulated, while an auction purchase with a confirmed buy-to-let refinance is closed and unregulated.

Yes — this is the strongest use case for closed bridging. Once contracts have exchanged, the sale is legally committed and the completion date is fixed, so the lender can see a documented repayment event rather than a forecast. Support the application with the exchanged contracts, solicitor confirmation of the completion date, and redemption figures for any existing debt on the property.

Yes, if the refinance is properly evidenced and already progressing — a formal mortgage offer, or a strong underwritten DIP with lender correspondence. If the refinance is only an intention with no lender engaged and no realistic timescale, lenders will treat the case as open bridging regardless of how it is presented. The strength of the documentation is what determines the classification.

Bridging lenders price risk, and the largest risk on any bridge is whether and when it will be repaid. When the repayment route is documented and the date is known, that risk falls sharply, and the saving is passed on as a lower monthly rate. On short terms, also compare fixed costs — a slightly higher rate with no exit fee often beats a lower rate with a 1% exit fee.

Up to 75% net LTV on qualifying cases. The exact leverage depends on the property type, its marketability, the borrower profile, and the strength of the exit evidence. Lower leverage generally improves pricing, so if the deal works at 65% it is usually worth taking the cheaper rate rather than maximising the advance.

Rates start from 0.55% per month on the strongest cases — a prime residential asset at conservative LTV with an exit backed by exchanged contracts. Most cases price above that floor depending on leverage, security type, borrower profile and exit certainty. Add an arrangement fee of typically 1–2%, legal fees, a valuation fee where required, and lender administration fees; exit fees are often nil but should always be confirmed at DIP stage.

Clean cases with strong documentation and responsive solicitors can complete from 3 working days, and indicative terms are issued the same day where information is complete. Most cases take longer depending on the valuation route, title complexity, and legal work. Instructing the valuer and solicitor in parallel on day one is the single most effective way to protect the timeline.

It depends on the exit route. For a sale exit: memorandum of sale, exchanged contracts where available, solicitor confirmation of the completion date, agent progression update, and redemption statements on existing debt. For a refinance exit: a DIP or mortgage offer, lender correspondence showing progress, a broker summary of the route, and solicitor details with expected completion timing.

They can be. If the security property is or will be occupied by you or a close family member, the loan is likely to be an FCA-regulated mortgage contract. Investment, buy-to-let, commercial and company cases are normally unregulated. Aura Capital is an independent brokerage and is not authorised or regulated by the FCA — where a case is or may be regulated we confirm that at the outset and refer you to an FCA-authorised lender or broker on an introductory basis.

In many cases, yes. Closed bridging is asset-led and exit-led, so lenders focus on the quality of the security and the certainty of the exit rather than credit score. Missed payments, defaults, CCJs, IVAs and historic bankruptcy are all regularly considered. Disclose adverse credit at enquiry stage — it widens the lender pool rather than narrowing it, because the case is placed with a lender whose criteria already accommodate it.

Flag it to your broker and lender as early as possible. Many lenders will consider a formal extension on a case that is communicating openly, and where they will not, a refinance bridge onto a new facility is usually available — but both need starting weeks before redemption, not days. If the loan is not repaid at term end, default interest applies at a materially higher rate and enforcement becomes a real risk. Building a realistic buffer into the term is the cheapest protection available, particularly on rolled-interest facilities where unused months are usually rebated.

Yes, on the right case. First charge is most common, but a second charge closed bridge can work where there is an existing mortgage you do not want to disturb and sufficient equity behind it. The first-charge lender's consent is normally required, and pricing is higher to reflect the subordinated position. See our second charge bridging loans page for detail.

Closed bridging facilities run from £26,000 to £10m, with larger loans considered by scenario and lender appetite. Terms run from 1 to 12 months and should be matched to the evidenced exit date plus a realistic buffer. Borrowers can be individuals, SPVs, limited companies, partnerships or LLPs; newly incorporated companies are accepted, usually with director guarantees.