Residential Bridging Loans: Secure Your Next Home Without Chain Delays
Don't lose your dream home to a broken property chain or a delayed buyer. Access flexible bridging mortgages from £26,000 to £10m+ across 50+ specialist UK lenders.
A residential bridging loan (often called a bridging mortgage) is short-term finance secured on your current home, the new one, or both. It lets you buy before you sell, then repays in full when your sale completes or you refinance onto a mortgage.
On this page
Residential bridging loans: the short version
- What it is: a short-term loan secured on residential property, used to buy a home before your current one has sold, or to buy a property a mortgage lender will not yet touch.
- How much: £26,000 to £10m+, up to 75% loan to value across the properties offered as security (up to 100% of the purchase price with additional security or a second charge).
- What it costs: rates from 0.61% a month. Interest can be rolled up, so there are no monthly payments until you sell. £0 upfront broker fees.
- How long: 3 to 18 months. If the loan is secured on the home you live in or will live in, it is FCA-regulated and capped at 12 months.
- How fast: Agreement in Principle within hours; funds typically in 7 to 14 days, or 48 hours on a fast-track route.
The smart alternative when buying before selling
The scenario. You have found the right property, but your existing home has not sold, or your buyer's chain has collapsed a week before exchange. The vendor will not wait, and a conditional offer will lose to a cash buyer.
The bridge. Aura Capital arranges a temporary loan secured against your existing home, the new property, or both. Because the lender is looking at the equity in the properties rather than your monthly income, it can be agreed in hours and completed in days. You buy as a cash buyer.
The exit. When your original home sells, the sale proceeds repay the bridging loan in full, including the rolled-up interest. If you decide to keep both properties, you refinance onto a standard residential or buy-to-let mortgage instead.
Buy the new house
Bridging loan funds the purchase. You complete as a cash buyer, on your timetable.
Bridge the gap
Interest rolls up monthly. No payments while you market and sell the old home.
Sell the old house, clear the loan
Sale proceeds repay capital and interest. Any surplus is yours.
Existing home worth £450,000 with a £150,000 mortgage; new home £600,000. A bridging loan of £400,000 secured across both properties sits at 38% LTV. At 0.61% a month rolled up for six months, the interest is about £14,900, cleared from the £300,000 equity released when the old home sells. Figures are illustrative; your quote will reflect the lender, term and fees.
When to choose a residential bridging loan
Breaking property chains
Step in as a cash buyer when someone down the chain pulls out, keeping your purchase on schedule and your deposit safe.
Downsizing in retirement
Buy your retirement bungalow or apartment now, without the pressure of waiting for your family home to complete first. Repay from the sale when it suits you.
Auction residential purchases
Complete auction purchases within the strict 28-day deadline, with terms agreed before you bid.
Auction bridgingBuying before selling
Secure competitive properties in high-demand markets without making conditional offers that lose out to cash buyers.
Light home improvements before move-in
Bridge the gap while you fit a kitchen or bathroom, or make a property mortgageable, before taking out a long-term residential mortgage.
Refurbishment bridgingDeadline in days, not weeks
Where the completion date is already fixed, a fast-track route with desktop valuation and title insurance can complete in as little as 48 hours.
Fast bridgingUnderstanding regulated bridging mortgages
Whether your bridging loan is regulated depends on one question: will you or an immediate family member live in the property the loan is secured on? If yes, it is a regulated mortgage contract. If the property is an investment you will not occupy, it is unregulated.
| Criteria | Regulated bridging loan | Unregulated bridging loan |
|---|---|---|
| Security | A property that is, or will be, occupied by you or an immediate family member (40%+ of it as a dwelling) | Residential investment, buy-to-let, holiday lets, or property held in a company |
| Oversight | Financial Conduct Authority: advised sale, affordability and vulnerability checks, consumer protections | Not FCA-regulated: lender and borrower agree terms commercially |
| Maximum term | 12 months (statutory cap) | Typically up to 18 to 24 months |
| Interest options | Rolled up or retained; serviced only if affordable | Rolled up, retained or serviced |
| Who arranges it | An independent FCA-authorised adviser, which we arrange for you at no cost | Aura Capital, direct with the lender |
| Typical use | Chain break, downsizing, buying before selling your home | Investment purchase, portfolio refinance, auction lots you will let out |
Aura Capital is not authorised or regulated by the Financial Conduct Authority and does not give regulated mortgage advice. If your case is regulated, we arrange a qualified, independent FCA-authorised adviser for you, at no cost to you, and work alongside them on the lender side. Our regulated bridging loans page explains the process in full.
Flexible repayment options tailored to your finances
Most residential borrowers are already paying one mortgage. Bridging lenders know that, so the loan is structured to protect your monthly cash flow until the sale completes.
Rolled-up interest
Interest is added to the loan balance each month and cleared when your house sale completes. Zero monthly payments during the loan term. You need slightly more headroom in the LTV to accommodate the accrued interest.
Retained interest
The total interest for the term is calculated upfront and deducted from the initial advance. Nothing to pay monthly, and if you repay early most lenders refund the unused months.
Monthly serviced interest
Pay the interest each month as you would with an interest-only mortgage. Keeps the balance flat and maximises the net advance, but the lender will assess affordability.
For a full breakdown of interest options, arrangement fees, valuation and legal costs on a specific loan, use the bridging loan calculator or read the complete guide to bridging loans.
Residential bridging loan criteria
Bridging lenders underwrite the property and the exit first and the borrower second. These are the three things every lender on our panel will want to see.
- Equity and LTV. Typically a minimum of 25% equity in the security property, so a maximum of 75% LTV. Offering both your existing home and the new property as security lowers the combined LTV and usually improves the rate. Up to 100% of the purchase price is possible with additional security or a second charge.
- A viable exit strategy. A clear, documented plan to repay: an estate agent's marketing agreement or sale memorandum on your existing home, or a mortgage Agreement in Principle if you intend to refinance. The stronger the evidence, the lower the rate.
- Credit flexibility. Asset-backed lending accommodates minor credit issues, historic CCJs and self-employed or irregular income profiles that high-street lenders reject. See bridging loans for bad credit for what each lender accepts.
Aura Capital lending terms
| Loan parameter | Aura Capital specification |
|---|---|
| Loan amount range | £26,000 to £10,000,000+ |
| Monthly interest rate | From 0.61% per month |
| Maximum loan to value | Up to 75% LTV (up to 100% of purchase price with additional security or a second charge) |
| Loan duration | 3 to 18 months (FCA-regulated residential loans capped at 12 months) |
| Regulation | Regulated (primary residence or family-occupied) via an FCA-authorised adviser; unregulated (investment residential) arranged directly |
| Exit strategies accepted | Sale of existing property, refinance to a standard residential or buy-to-let mortgage |
| Repayment options | Rolled-up interest (no monthly payments), retained interest, or serviced monthly |
| Broker fee structure | £0 upfront fees: remuneration from the lender on completion |
Figures are indicative, based on our lender panel in November 2026, and subject to lender underwriting, valuation and legal due diligence.
Found the house but not sold yours?
Tell us both addresses and your timescale. We will confirm the route, the rate and whether it is regulated, usually within the hour.
Frequently asked questions about residential bridging loans
Can I get a bridging loan to buy a house before selling mine?
Yes. This is the most common use of a residential bridging mortgage. The loan is secured on your existing home, the new one, or both, and funds the purchase so you can complete without waiting for your sale. When your existing home sells, the proceeds repay the bridge. Lenders will want to see that your home is realistically priced and on the market, or already under offer.
How long does it take to arrange a residential bridging loan?
An Agreement in Principle is usually issued within hours of your enquiry. Funds typically draw down within 7 to 14 days once the valuation and legal work are done. Where the deadline is tighter, fast-track options using a desktop valuation and title insurance can complete in as little as 48 hours. Regulated cases add a short advice step with the FCA-authorised adviser.
Do I have to make monthly repayments on a bridging mortgage?
No. Most residential borrowers choose rolled-up interest, so there are no monthly outgoings until the property is sold and the loan is repaid in one payment. Retained interest achieves the same result by deducting the interest upfront. Monthly serviced interest is available if you would rather keep the balance flat and the lender is satisfied it is affordable.
What is the maximum term for a regulated residential bridge?
Under FCA rules, a bridging loan secured on a home that you or your family occupy has a maximum term of 12 months. Unregulated residential bridging, on investment property you will not live in, typically runs up to 18 months and occasionally 24. Most chain-break loans are set up for 6 to 12 months and repaid early, with interest charged only for the months used after any minimum period.
What happens if my house doesn't sell in time?
Talk to us early, not in the last month. Options include a term extension with the existing lender (usually at a fee), a re-bridge onto a new facility to buy more time, a price reduction to secure a sale, or refinancing onto a residential or buy-to-let mortgage and keeping the property. Lenders prefer any of these to enforcement, and a credible plan agreed in advance keeps the cost down. We build a fallback exit into every case from day one.
Related bridging products.
Each product page has its own calculator, criteria and rates.
Ready to secure your next property without chain stress?
Speak to one of Aura Capital's residential finance specialists today. We will compare products across 50+ lenders and provide an initial term sheet within hours.
- Direct line
- 01451 514 563 Mon–Fri, 8:30am–6:00pm
- Enquiries
- enquiries@auracapital.co.uk
- Office
- Palace Gardens Terrace, London W8
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Bridging finance is short-term borrowing and needs a clear, credible exit strategy; if your property does not sell within the term, extension and refinance options carry additional cost. All figures on this page are indicative, based on our lender panel in November 2026, and subject to lender underwriting, valuation and legal due diligence. Aura Capital is a trading name of Chammosair Limited, registered in England & Wales, company no. 15786496. Aura Capital is not authorised or regulated by the Financial Conduct Authority and does not give regulated mortgage advice. Aura Capital acts as a broker, introducing cases to third-party lenders. Where a regulated product may be appropriate, we will refer you to an FCA-authorised and regulated adviser, lender or broker.