Bridge-to-let mortgages
Buy or refurbish a mixed-use property on a bridge, then term out automatically onto a semi-commercial or buy-to-let mortgage once it is let, all arranged under one application.
What bridge-to-let finance is
Bridge-to-let finance combines a short-term bridge and a term mortgage into a single arrangement. You buy or refurbish a property on the bridge, get it let, then the facility terms out automatically onto a semi-commercial or buy-to-let mortgage once the asset is producing rental income. It replaces the older idea of stabilisation finance with a product designed for property that is not yet lettable on day one but will be after a purchase completes or works finish.
The appeal is certainty. Arranging the bridge and the exit together means the term lender has already looked at the deal, so you are not left holding an expensive bridge while you hunt for a mortgage to repay it. The bridge funds the acquisition or the works to roughly 70 to 75 percent of value, then the term mortgage takes over once the property is let and a valuation confirms the rental income supports it.
We are a finance arranger and introducer, not a lender. Bridge-to-let on property held for investment is unregulated lending, outside the FCA's regulated mortgage perimeter. Where an individual borrower will personally occupy the residential element, regulated rules can apply and we refer those cases to a regulated firm.
- Combines a bridge and a term mortgage in one arrangement
- Bridge at about 0.70 to 0.95 percent a month, term at 6.5 to 8.5 percent a year
- Up to 70 to 75 percent of value on the bridge
- Terms out automatically once the property is let
- The exit is agreed before the bridge completes
Indicative terms
- Bridge LTVUp to 70 to 75% of value
- Bridge rateAbout 0.70 to 0.95% a month
- Term rate6.5 to 8.5% a year (indicative)
- Bridge termTypically 3 to 18 months
- ExitAutomatic term mortgage once let
- BorrowerIndividual, partnership or limited company
Indicative only. Terms vary by lender, property and borrower and are not an offer of finance.
Who it suits
- Investors buying a vacant or unlettable mixed-use property
- Landlords refurbishing before letting and refinancing
- Buyers at auction who need certainty of the exit
- Investors who want the bridge and term loan agreed together
Discuss bridge-to-let finance
A view on lenders and likely terms within one working day.
How bridge-to-let works
Agree the exit first
We arrange the bridge and the term mortgage together, so the term lender has assessed the deal and the exit is locked in before the bridge completes.
Buy or refurbish on the bridge
The bridge funds the purchase or the works to around 70 to 75 percent of value, with refurbishment money released in stages where needed.
Let the property
Once the commercial unit and the residential element are let, a valuation confirms the rental income and the market value.
Term out automatically
The facility converts onto the semi-commercial or buy-to-let mortgage, repaying the bridge and settling the property onto long-term money.
Who can use bridge-to-let finance
Bridge-to-let suits individuals, partnerships and limited companies buying or improving a property that will let once it is ready. Because the bridge is short-term and asset-backed, lenders focus less on personal income at the bridge stage and more on the value, the works and the credibility of the let-and-refinance exit. The term lender then underwrites the rental income in the usual way, testing the combined commercial and residential rent against a stressed interest cover ratio. A clear, realistic plan to let the property within the bridge term is essential, since the whole structure rests on the asset reaching a lettable, mortgageable state.
How much you can borrow on a bridge-to-let
The bridge advances up to 70 to 75 percent of value, with a deposit or equity of 25 to 30 percent, and where it funds works the facility can release refurbishment money in stages against the rising value. When the property is let, the term mortgage is sized on the combined commercial and residential rental income at an interest cover ratio of typically 125 to 140 percent, again up to 70 to 75 percent of the new valuation. Where the works have lifted the value, the term mortgage can sometimes repay the bridge in full and leave little or no further cash to find.
Rates, fees and the cost across both stages
The bridge is priced monthly at around 0.70 to 0.95 percent a month, roughly 8.5 to 11 percent a year for mid-2026, with interest commonly rolled up during the term. The term mortgage that follows runs at around 6.5 to 8.5 percent a year. Arranging both together usually means one valuation and a single underwriting process rather than two, though you should expect an arrangement fee on the bridge and on the term facility, plus legal and valuation costs. These figures are indicative and not an offer of finance. We set out the all-in cost across both stages so the structure is judged as a whole.
Bridge-to-let against a separate bridge and remortgage
Taking a standalone bridge and then arranging a separate remortgage to repay it leaves a gap: you complete the bridge without knowing the term lender will say yes, and you carry the higher bridging cost until a new mortgage is in place. Bridge-to-let closes that gap by agreeing the exit up front, so the term loan is lined up from the start and the conversion is built in. The trade-off is that you commit to a lender for both stages, which is why we make sure the term pricing and the let assumptions stack up before you proceed.
Bridge-to-let finance: common questions
What is a bridge to let?
It is finance that combines a short-term bridge and a term mortgage in one arrangement. You buy or refurbish a property on the bridge, let it, then the facility converts automatically onto a semi-commercial or buy-to-let mortgage once it is producing rental income.
When would you use bridge-to-let finance?
When a property is not lettable or mortgageable on day one, for example a vacant mixed-use building or one needing refurbishment before it can be let. The bridge funds the purchase or works, then the term mortgage takes over once the property is let and a valuation confirms the rent.
Can a 70 year old get a bridge-to-let mortgage?
Commercial and semi-commercial lenders are generally more flexible on age than residential lenders, because the term loan is serviced by rental income rather than personal earnings. Maximum age at the end of term varies by lender, and we place older borrowers with the most accommodating desks.
Is buy-to-let still worth it?
Mixed-use and semi-commercial buy-to-let can offer two income streams from one building and non-residential stamp duty treatment, which many investors find attractive. Whether any individual deal works depends on the price, the rent and the costs, which we model before you commit. This is not investment advice.
Discuss bridge-to-let finance
Send us the property details and we will come back with a view on lenders and likely terms within one working day.