Wellspring Capital is a specialist bridging finance broker, arranging short-term property finance for investors, developers, and businesses across the UK. We work with a panel of specialist and challenger lenders to structure bridging loans where speed, complexity, or property condition prevents access to conventional lending.
Bridging finance is not a commodity product. Lender appetite varies significantly by asset type, exit strategy, and borrower profile. Selecting the right lender at the outset, and presenting the case clearly, is often the difference between a smooth approval and a failed or repriced application.
What bridging finance is used for
Bridging loans are short-term, secured lending typically used where timing, condition, or complexity makes conventional finance unsuitable. Common uses include:
- Auction purchases requiring completion within 28 days
- Chain breaks where a transaction would otherwise collapse
- Unmortgageable property being acquired for refurbishment or change of use
- Vacant or part-let commercial property ahead of lease stabilisation
- Refinance pending sale, where an asset is being marketed but a liability needs clearing
- Land or development where planning is pending or works are underway
- Below-market-value acquisitions requiring fast, unconditional funding
In each case the loan is intended as a temporary measure, pending a clearly defined exit — typically sale or refinance onto a commercial mortgage or development finance facility.
How bridging lenders assess applications
Exit strategy The exit is the primary consideration for most bridging lenders. Whether the loan will be repaid via sale or refinance, the viability and timeline of that exit must be credible and evidenced. Weak or speculative exits lead to either declined applications or significantly higher pricing.
Loan-to-value (LTV)
- Residential bridging: typically up to 70–75% of open market value
- Commercial and mixed-use bridging: typically up to 60–70% LTV
- Development exits or specialist assets may attract lower LTV limits
Higher LTV facilities are available in certain circumstances, including where additional security is offered.
Property condition and type. Bridging lenders can accommodate assets that mainstream lenders will not – including uninhabitable property, properties without a kitchen or bathroom, and commercial buildings in poor condition. However, property type and condition directly influence which lenders will participate and at what price.
Borrower experience. Experience is considered in context. First-time investors can access bridging finance, particularly for straightforward residential assets, though lender appetite narrows for complex commercial or development cases where track record becomes more important.
Bridging finance for commercial pBridging finance rates – what to expect in 2026
Bridging rates are quoted monthly and vary based on loan size, LTV, exit strategy, asset type, and lender. As a general guide:
| Loan type | Typical monthly rate |
|---|---|
| Residential bridging (standard) | 0.55% – 1.10% per month |
| Commercial bridging | 0.75% – 1.10% per month |
| Heavy refurbishment / development exit | 0.85% – 1.20% per month |
| Second charge bridging | 0.85% – 1.20% per month |
Rates are in addition to arrangement fees (typically 1–2% of the loan), valuation costs, and legal fees. Interest is commonly retained from the loan at drawdown rather than paid monthly.
These are indicative figures only. Actual rates depend on individual circumstances and lender criteria at the time of application.
Regulated vs unregulated bridging finance
An important distinction that affects both lender selection and advice permissions:
Unregulated bridging applies where the security property is a commercial or investment asset — including buy-to-let and mixed-use property — and the borrower is not living in or planning to live in it. The majority of bridging loans arranged through Wellspring Capital fall into this category.
Regulated bridging applies where the security is, or will be, the borrower’s main residence or a property where a close family member resides. Regulated bridging falls under FCA oversight.
Important: Wellspring Capital is not authorised or regulated by the FCA and does not arrange regulated bridging finance. Our activity is limited to unregulated commercial and investment bridging.
Bridging finance for commercial and mixed-use property
Commercial and semi-commercial property frequently requires bridging due to complexity, vacancy, or condition. Mainstream lenders are often unable to support these transactions, making specialist bridging lenders – who understand asset-led lending, more appropriate.
Typical scenarios include:
- Retail units, offices, or industrial property being acquired vacant
- Mixed-use buildings (commercial ground floor, residential above) mid-refurbishment
- Properties with short or expired leases pending renewal
- Buildings requiring a change of use before planning approval
In many cases, the medium-term intention is to refinance onto a commercial mortgage once the asset is income-producing and stabilised. Structuring the bridging facility with that exit in mind from the outset, including ensuring the asset will meet the target lender’s criteria at refinance, is where early broker involvement adds the most value.
Bridging finance for property development
Bridging is sometimes used at the early stages of development, particularly for land acquisitions, pre-planning purchases, or light refurbishment, where development finance is not yet appropriate or the project timeline is short.
For larger or more complex schemes, development finance will typically be more suitable, offering staged drawdowns against build cost rather than a single advance.
Typical bridging loan structure
- Loan term: 3–18 months (some lenders up to 24 months)
- Repayment basis: Interest-only
- Interest handling: Retained, rolled, or serviced monthly depending on lender and LTV
- Security: First legal charge (second charge available in certain circumstances)
- Completion timeframes: 5–10 working days for straightforward cases; 2–4 weeks for complex assets
- Personal guarantees: Required by most lenders
Frequently asked questions
How quickly can a bridging loan complete? For standard residential assets with a clear exit, some lenders can complete in 2–7 working days from instruction. Commercial and mixed-use cases typically take 2–4 weeks depending on valuation turnaround and legal complexity. Auction purchases can often be accommodated within the standard 28-day completion window.
Can I get bridging finance on a property that needs work? Yes — this is one of the primary uses of bridging finance. Lenders assess the property on its current value and the viability of the exit post-works. Heavy refurbishment cases may attract slightly higher rates and lower LTV limits, but the market for these cases is well-established.
What counts as an acceptable exit strategy? The two most common exits are sale of the property and refinance onto a longer-term facility. Lenders want evidence that the exit is realistic. For sale exits this typically means comparable evidence; for refinance exits, a clear picture of what the stabilised asset will look like and which lender type would refinance it.
Can limited companies use bridging finance? Yes. The majority of commercial and investment bridging is arranged through limited companies or SPVs. Lenders are accustomed to this structure and it does not prevent access to competitive facilities, though personal guarantees from directors are typically required.
Is bridging finance regulated? Bridging secured against commercial or investment property is unregulated. Bridging secured against a borrower’s main residence is regulated and falls under FCA oversight. Wellspring Capital arranges unregulated bridging only.
What is the maximum LTV available on a bridging loan? For residential assets, up to 75% of open market value is achievable with the right lender and exit. For commercial property, 65% is more typical, with some lenders going to 70% for strong cases. Higher leverage is sometimes possible where additional security is available.
Are there any upfront fees before the loan completes? Most bridging lenders do not charge upfront application fees, but a valuation fee will typically be required on instruction. Legal costs are payable at or around completion. Broker and arrangement fees are usually deducted from the loan at drawdown.
How Wellspring Capital works
We focus on early feasibility assessment and lender alignment. Before committing valuation and legal costs, we review exit strategy, asset profile, and LTV to identify appropriate lenders and likely pricing, giving you a realistic picture of what’s achievable before incurring third-party expense.
Our role is to structure bridging opportunities clearly and introduce cases to funding partners in a lender-ready format. We work with specialist bridging lenders, challenger banks, and private credit providers, selecting the most appropriate route based on asset type and borrower profile.
We also arrange commercial mortgages and development finance for property investors across the UK.
Discuss your bridging requirement →
Bridging finance by location
We arrange bridging finance across the UK, with particular activity across Greater Manchester and the North West:
Important note
Wellspring Capital is not authorised or regulated by the Financial Conduct Authority. We do not provide regulated mortgage advice or arrange regulated bridging finance. Our role is limited to the introduction and structuring of unregulated commercial finance.