Closed Bridging Loans
A closed bridging loan is a short-term, secured property loan with a fixed repayment date and a predetermined exit strategy. These loans are typically used where repayment timing is already evidenced - such as after exchange of contracts, on a confirmed refinance, or where another documented liquidity event is in place. Because the lender knows how and when the loan will be repaid, closed bridging loans usually offer lower rates than open bridging loans and can complete quickly on the right case.
What makes a closed bridge different?
A closed bridging loan is defined by the certainty of its exit. The key difference is not just that the borrower intends to repay - it is that the lender can see documented evidence of when repayment will happen. That could be exchanged sale contracts, solicitor confirmation of completion, or a confirmed mortgage refinance already progressing. This is why a closed bridge is usually the most suitable form of fixed-exit bridging finance.
Closed Bridging Loan Calculator
Estimate loan size, interest and costs for a closed bridging loan. Figures are indicative only. Final terms depend on property type, exit certainty, leverage, borrower profile and lender criteria.
Use the value or price the lender is expected to underwrite against.
Closed bridging loans commonly go up to 75% net LTV. Lower leverage usually improves pricing.
The term should match the confirmed exit date as closely as possible.
Closed bridging rates can start from 0.55% pm on the strongest cases.
Rolled or retained interest is common on closed bridging loans.
Indicative only. Varies by lender and case size.
Often nil, but always confirm at DIP stage.
Indicative only and varies by solicitor and complexity.
Indicative only and lender dependent.
Indicative breakdown
Figures are indicative and do not constitute an offer. All lending is subject to underwriting, valuation and legal due diligence.
What is a closed bridging loan?
A closed bridging loan is a short-term secured property loan where the borrower has a fixed, evidenced repayment date agreed at the outset. That fixed date is usually supported by exchanged sale contracts, a progressing refinance, or other documented evidence of a known repayment event. This repayment certainty makes the loan lower risk for lenders and typically results in more competitive pricing than open bridging.
Fixed repayment date
The term is aligned to a known exit event rather than an estimated future sale or refinance timeline.
Defined, evidenced exit
Lenders want documentary proof of the exit, not just an intention to repay.
Lower rates than open bridging
Because repayment certainty is stronger, closed bridging loans are usually priced more competitively.
The key distinction
The difference between closed bridging loans and open bridging loans is entirely about the certainty of the exit. On a closed bridge, the repayment date is documented and known. On an open bridge, the exit may still be sensible, but it is not yet fixed with evidence of timing.
Key aspects of closed bridging loans
These are the main features that define a closed bridge and make it different from other short-term finance products.
Defined exit strategy
The lender knows how and when the loan will be repaid. This is what makes the loan closed.
Lower risk - lower cost
Because the exit date is evidenced, monthly rates are usually lower than comparable open bridging cases.
Fast funding
Where documents, solicitors and title are all ready, a closed bridge can move quickly.
Secured against property
Most closed bridging loans are secured by first charge, although second charge can be available on the right case.
Regulated where applicable
If the borrower or a close family member will live in the property, the loan may be FCA regulated.
Related: regulated bridging loans.
Interest usually rolled or retained
Many borrowers choose non-serviced structures so there are no monthly payment obligations during the term.
Closed vs open bridging loans
Understanding the difference helps borrowers choose the right product and helps lenders assess the case correctly.
Side-by-side comparison
| Feature | Closed bridging loan | Open bridging loan |
|---|---|---|
| Repayment date | Fixed and evidenced at outset | No fixed confirmed date |
| Exit strategy | Confirmed and documented | Intended but not yet documented with timing |
| Lender risk | Lower | Higher |
| Rates | Typically lower | Typically higher |
| Best for | Post-exchange, confirmed refinance, known liquidity events | Cases where the exit is sensible but not fixed yet |
| Flexibility | Less flexible | More flexible |
If the exit is not yet fixed, an open bridging loan may be more appropriate.
Common uses for closed bridging loans
Closed bridging loans are most suitable where repayment timing is already known and evidenced.
Post-exchange chain break
Contracts have exchanged on an onward sale and the borrower needs to complete a purchase before sale funds arrive.
Purchase before mortgage completes
The borrower has a mortgage offer or progressing refinance but needs funds faster than the mortgage process allows.
Auction purchase with confirmed exit
An auction buyer needs to meet a 28-day deadline and already has a refinance route progressing.
Related: auction finance.
Development exit
A developer needs short-term liquidity while confirmed unit sales complete.
Related: development exit bridging loans.
Property under offer
A borrower wants to release equity where sale progression is advanced and well evidenced.
Refinance of an expiring facility
A borrower has a replacement product progressing and needs a short bridge to cover the gap.
Related: refinance bridging loans.
Closed bridging loans after exchange of contracts
One of the strongest use cases for a closed bridge is where contracts have already exchanged and the lender can see a legally binding completion date.
Why lenders like post-exchange cases
- The completion date is fixed
- The sale is legally committed
- The exit is easier to evidence
- Pricing can be more competitive than open bridging
Typical post-exchange scenarios
- Residential chain break on a main residence
- Purchase completion needed before sale monies arrive
- Short gap between sale completion and refinance drawdown
- Temporary liquidity while solicitors complete the transaction
Why this section matters
A borrower searching for a closed bridging loan after exchange of contracts usually has a very specific problem: the deal is real, the dates are known, but the money is not yet in place. That is a classic fixed-exit bridging case and should be treated differently from a general open bridge enquiry.
Closed bridging loans with a confirmed refinance exit
A closed bridge can also work where the exit is not a sale, but a refinance that is already clearly progressing with documentary evidence.
Mortgage offer in place
A formal mortgage offer or strong DIP can support a closed bridging structure, depending on the lender.
Buy-to-let refinance exit
Common on investment property purchases where the borrower is bridging to a planned term refinance.
Short-term refinance gap
Useful where the refinance is approved but cannot complete fast enough for the immediate requirement.
When a refinance exit may not be treated as closed
If the refinance is only an intention, with no lender engagement, no underwritten evidence or no realistic timescale, many lenders will treat the case as open bridging rather than closed bridging. The detail of the evidence matters.
Documents lenders typically want on a closed bridge
Packaging the case correctly helps keep a closed bridge indexed in lender systems as a genuine fixed-exit case and improves the chance of a fast approval.
For sale exits
- Memorandum of sale
- Exchange of contracts, where available
- Solicitor confirmation of completion date
- Estate agent progression update
- Redemption statements on existing debt if relevant
For refinance exits
- Decision in Principle or mortgage offer
- Lender correspondence showing progress
- Broker summary of refinance route
- Valuation or property schedule if available
- Solicitor details and expected completion timing
What weakens a closed bridge application?
Unclear timings, missing documents, unrealistic refinance assumptions, poor communication between solicitors, and a mismatch between the requested loan term and the likely exit date can all weaken the case. Strong packaging makes a material difference.
Exit strategy requirements for closed bridging loans
The exit strategy is the most important part of a closed bridging loan. Lenders need evidence of a confirmed repayment event, not just a general plan.
What counts as a confirmed exit
- Exchanged sale contracts with a completion date
- Mortgage or buy-to-let refinance route already evidenced
- Development sales that are contractually progressed
- Another documented liquidity event with a fixed date and amount
Exit evidence lenders want to see
- Signed or progressed legal paperwork
- Solicitor confirmation of dates
- Lender correspondence on refinance
- Sale progression confirmation
- Supporting documents for any non-property liquidity event
If your exit is not yet fixed
If the borrower has a sensible exit plan but no fixed repayment date yet, the case may be more appropriate for open bridging. The right product should be decided by the evidence, not just by preference.
Typical terms for closed bridging loans
These are common market ranges for guidance only.
Common ranges
| Feature | Typical range | Notes |
|---|---|---|
| Loan size | £26,000-£10,000,000 | Higher by scenario and lender appetite |
| Net LTV | Up to 75% | Case dependent |
| Rates | From 0.55% pm | Depends on security, leverage and exit certainty |
| Term | 1-12 months | Usually aligned to the exit date |
| Decision speed | Same day indicative | Subject to packaging quality |
| Completion | From 3 working days | Title, legal route and documents matter |
| Charge type | First or second charge | First charge is most common |
| Borrower type | Individual, SPV, company | Regulated and unregulated available |
Regulated vs unregulated closed bridging loans
Whether a closed bridge is regulated depends on the use of the security property.
Regulated closed bridging loans
If the borrower or a close family member will live in the property, the loan may be FCA regulated. This is common on residential chain break cases.
- Usually up to 12 months
- FCA-compliant advisory process
- Most common on owner-occupier transactions
Related: regulated bridging loans.
Unregulated closed bridging loans
If the property is an investment asset, buy-to-let, commercial unit or land, or the borrowing is corporate, the loan is usually unregulated.
- Wider lender pool
- More flexible structures
- Common on investor and developer cases
Related: unregulated bridging loans.
Closed bridging loan rates and costs
Closed bridging loans tend to price lower than open bridging because the repayment route is more certain. However, final cost still depends on leverage, security, borrower profile and the quality of the exit evidence.
Interest rates
Rates can start from 0.55% per month on strong cases. Most cases sit higher depending on leverage and complexity.
Arrangement fees
Typically around 1-2% of the gross loan amount, though this varies by lender and deal size.
Other costs
Legal fees, valuation fees where required, and lender administration fees should all be factored into the overall cost.
Why closed bridging is usually cheaper
Bridging lenders price risk. When the exit is clearly documented and the repayment date is known, the lender takes less risk than on an open-ended or uncertain case. That is why closed bridging loan rates are often more competitive than open bridging rates on similar assets.
Closed bridging loans with bad credit
Closed bridging is primarily asset-led. A borrower with adverse credit may still be acceptable where the security and exit are strong.
Adverse credit that may be considered
- Missed payments and defaults
- CCJs
- IVAs and historic bankruptcy
- Low credit score
- Complex income profile
What lenders focus on instead
- Strength of the fixed exit
- Security quality
- Sensible LTV
- Clear explanation of any historic issues
Related: bridging loans for bad credit.
Timeline: quote to completion on a closed bridging loan
Closed bridging loans can move quickly because the exit is already evidenced. The best timelines come from clean packaging and responsive solicitors.
Best information to include in your enquiry
- Property address and type
- Estimated value or purchase price
- Loan amount required
- Term required
- Exit route and evidence available
- Any existing debt on the property
- Borrower type
Closed bridging loan case examples
Illustrative and anonymised scenarios showing where a closed bridge can fit.
Case 1: residential chain break
Borrower has exchanged on the sale of their existing home but needs to complete a purchase before sale proceeds arrive.
- Loan: £280,000
- LTV: 70%
- Exit: exchanged sale contracts
- Regulated: yes
Case 2: auction purchase with BTL refinance
Investor completes an auction purchase using a short bridge while a buy-to-let refinance is already progressing.
- Loan: £210,000
- LTV: 70%
- Exit: confirmed refinance route
Case 3: development exit
Developer completes a scheme and uses short-term finance while agreed unit sales work through legal completion.
- Loan: £1.1m
- LTV: 65%
- Exit: sale progression on completed units
Want a quote for a closed bridging loan?
Send the property address, value or purchase price, loan amount, term and your exit evidence. We will confirm if the case fits a genuine closed bridge and what pricing may be achievable.
Ready to proceed with a closed bridging loan?
Send the property address, value or purchase price, loan amount, borrower type, required term and the exit evidence available. We will confirm whether a closed structure is suitable and what terms may realistically be available.
Any mortgage or debt facility secured against property may be subject to repossession if repayments are not maintained or terms are not met. All finance is subject to underwriting, valuation and legal due diligence. Aura Capital acts as a broker. Where regulated advice is required, this will be confirmed at the outset.
Closed bridging loan FAQs
Common questions about fixed-exit bridging finance.
What is a closed bridging loan?
A closed bridging loan is a short-term secured property loan with a fixed, evidenced repayment date agreed at the outset. The exit is known and supported by documentation, such as exchanged sale contracts or a confirmed refinance route.
What is the difference between a closed and open bridging loan?
A closed bridge has a confirmed repayment date and evidence of how 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.
Can I get a closed bridging loan after exchange of contracts?
Yes. This is one of the strongest use cases for closed bridging because the lender can see a legally committed completion date and a documented sale progression route.
Can a refinance count as a closed bridging exit?
Yes, if the refinance is already properly evidenced and progressing. The strength of the documentation determines whether lenders view it as genuinely closed.
Why are closed bridging loans usually cheaper?
Because the repayment route is more certain, the lender takes less risk. That lower risk is often reflected in a lower monthly rate compared with open bridging.
What documents do lenders want?
This depends on the exit route, but commonly includes sale progression evidence, solicitor confirmation, exchanged contracts, a DIP, a mortgage offer, or other documents showing how and when the loan will be repaid.
What LTV is available on a closed bridging loan?
Closed bridging loans commonly go up to 75% net LTV, though exact leverage depends on the property, borrower and strength of the exit.
What rates are available?
Rates can start from 0.55% per month on strong cases. Final pricing depends on leverage, security type, borrower profile and exit certainty.
How quickly can a closed bridge complete?
Clean cases with responsive solicitors and strong documentation can complete from 3 working days. Many cases take longer depending on valuation, title and legal complexity.
Are closed bridging loans regulated?
They can be. If the property is or will be occupied by the borrower or a close family member, the loan may be FCA regulated. Investment and company cases are usually unregulated.
Can I get a closed bridge with bad credit?
Yes, in many cases. Bridging is asset-led, so lenders focus heavily on the quality of the security and the certainty of the exit.
What happens if the exit is delayed?
If the exit is delayed, the borrower should engage early with their broker and lender. Some lenders may consider an extension, but default interest and enforcement risk can arise if the loan is not repaid on time.
