selling

Bridging loan or something else when you need to buy before you sell

Bridging loan or an alternative if you must buy before you sell: how each option works, the main risks, and what to check with the FCA before you borrow.

4 min read
Last reviewed 4 November 2026
By Your Property Check team

Part 1 of 7

What a bridging loan is, and the main caution

A bridging loan is borrowing for a short period, usually secured on a property, to cover a gap in your finances. In home moving the gap is simple: you need the money for your next home before the sale of your current one completes. The loan "bridges" the two dates and is repaid when the sale proceeds arrive.

The caution comes first. Bridging is short-term borrowing, so costs are charged over a short period and can add up quickly, and you owe the lender even if your sale is delayed or falls through. We do not quote interest rates or fees on this page, because we could not source them from the FCA or MoneyHelper (their relevant pages would not load for us on 4 November 2026) and lender websites are marketing, not neutral data. Ask any lender for the total cost in writing, including arrangement fees, interest, exit fees and legal costs, and calculate what happens if repayment takes longer than planned. Our bridging loan glossary entry and the auction cost calculator show how short-term finance costs add up.

This page is general information, not financial or legal advice. The rules covered apply to England and Wales. If the loan will be secured on your home, speak to an independent mortgage adviser before you sign.

Part 2 of 7

Why people consider it

The sale and the purchase rarely line up. GOV.UK says an offer is not legally binding in England and Wales until contracts are exchanged, so a chain can move or break at any point before then. Once contracts are exchanged the sale is binding, and your solicitor repays your mortgage and other secured debts on completion from the sale money. Bridging is sometimes used when you must exchange on the purchase before your own sale is ready, for example to secure a home at auction. Our guide to selling a house at auction explains the timing pressure there.

Part 3 of 7

Options compared

Option	How the cost works	Speed	Main risk	Regulated?
Bridging loan	Interest, arrangement and exit fees, plus legal costs. Ask for the total in writing	Can be arranged faster than a mortgage, but depends on the lender and the security	You must repay even if your sale slips or fails	Depends on how it is secured and who it is for. Ask the lender and check the FCA Register
Wait and sell first	No new borrowing	Slower	You may lose the home you want	Not applicable
Sell, then rent short term	Rent and a second move	Flexible	Two moves and rent while you wait	Not applicable
Longer completion on the purchase	Usually no direct cost	Depends on what the seller will accept	The seller may refuse or choose another buyer	Not applicable
Part exchange with a builder	Builder's own terms, often below open market value	Can be quicker for a new build	Only on selected homes, and eligibility rules apply	Not a loan
Sale to a cash buyer first	Typically below open market value	Can be quicker, but no one can promise a date	You accept a lower price for speed	Not applicable

Part 4 of 7

Is bridging regulated?

Some bridging loans are regulated and some are not. We could not load the FCA's own explanation, so we do not set out the test here and you should not rely on a third-party summary. What the FCA does say on the pages we read is that you can check whether a firm is authorised, and has permission for the service it is offering you, using the FCA Firm Checker and the Financial Services Register. It also publishes a Warning List of firms it is concerned are working without its permission. Before you sign:

Search the lender or broker on the Financial Services Register.
Ask in writing whether the loan is regulated by the FCA, and what protections that gives you.
Check the Warning List.
Get the exit plan in writing: how and when the loan is repaid.

Part 5 of 7

Questions to ask before borrowing

What is the total cost over 6 months and over 12 months, if the sale takes longer than planned?
What happens if my buyer pulls out? What is the new repayment date?
What security does the lender take, and is it my current home or the new one?
Does my existing mortgage lender have to agree? Our guide to selling a house with a mortgage and the early repayment charge article explain the lender's side.

Part 6 of 7

Alternatives in more detail

Sell first and rent. It removes the double-payment risk. The cost is rent, a second move and storage, and the home you wanted may be gone.

Negotiate the dates. A longer completion on the purchase, or a shorter one on your sale, can close the gap at no cost. It depends on the other parties, and GOV.UK confirms nothing binds anyone until exchange.

Make the sale more certain. A chain-free buyer, a mortgage already approved or a cash buyer reduces the chance of delay. Our guide to selling a house quickly compares the routes and their trade-offs.

Reduce what you need to borrow. A smaller deposit gap can be covered with savings or family help, with no short-term loan at all.

Part 7 of 7

A fair summary

Bridging can make sense when the timing really is tight and the exit is certain, such as a signed sale awaiting completion. It makes much less sense when your own sale is still uncertain. In that case compare the alternatives above, and get independent advice first.

Our take

Borrow only when your exit is certain

Our view: bridging can work when a sale is already agreed, but it is risky while your own sale is uncertain, because you owe the lender whether or not the sale completes. Get the total cost in writing and compare the alternatives first, including selling first and renting, or agreeing different completion dates.

What Your Property Check adds: the sale method comparison sets auction, estate agent and cash buyer routes side by side on net proceeds and timescale, so you can see whether selling a different way removes the need to borrow.

Compare sale routes

Our opinion, drawn from the facts on this page: not advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.

Questions, answered

Frequently asked questions

What is a bridging loan?

A short-term loan, usually secured on property, that covers the gap when you need money for a purchase before your own sale completes. You repay it from the sale proceeds. You still owe the lender if the sale is delayed.

How much does a bridging loan cost?

We give no figure, because we could not source one from the FCA or MoneyHelper. Costs usually include interest, arrangement and exit fees and legal costs. Ask for the total in writing, including a late repayment scenario.

Is bridging finance regulated by the FCA?

Some is and some is not. We could not load the FCA's explanation, so check the firm on the Financial Services Register and ask the lender in writing whether your loan is regulated and what protection that gives you.

What can I do instead of a bridging loan?

You can sell first and rent, agree longer or shorter completion dates, make your sale more certain, borrow less, or use a builder's part exchange where one is offered. Each has its own trade-off.

Can a bridging loan be repaid before my sale completes?

Repayment terms differ by lender, so ask for exit fees and early repayment terms in writing. GOV.UK says your solicitor repays secured debts from the sale money on completion.

Where this comes from

Sources

Last reviewed 4 November 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.