Edinburgh · Scotland · UK-wide
A bridging loan is short-term borrowing secured against property, usually for 3 to 18 months, used when speed matters more than cost or when a property cannot yet be mortgaged conventionally. It is priced monthly rather than annually — commonly around 0.55% to 1.2% per month depending on the case — and it is only ever as good as its exit: the sale or refinance that repays it. Prime Mortgages arranges bridging for auction purchases, chain breaks, refurbishment projects and unmortgageable buildings across Edinburgh and Scotland.
Rolled-up interest means you make no monthly payments — the interest is added to the balance and settled when you repay. That protects your cash flow but means the debt grows every month the exit is delayed.
| Cost | Typical level |
|---|---|
| Interest | 0.55%–1.2% per month, usually rolled up rather than paid monthly |
| Arrangement fee | 1%–2% of the loan |
| Exit fee | 0%–1%, and increasingly often nil |
| Valuation | £500 upwards, depending on property and value |
| Legal fees | Yours and the lender's, both payable by you |
| Maximum loan to value | Usually 70%–75%, higher with additional security |
No responsible broker should arrange a bridging loan without a credible exit. There are only two: sell the property, or refinance it onto a longer-term mortgage.
If the exit is a sale, be realistic about how long Edinburgh sales actually take and build in a margin. If the exit is a refinance, we will usually agree the term mortgage in principle at the same time as the bridge, so the way out is already in place before you commit to the way in.
Bridging that runs past its term becomes very expensive very quickly, with default rates that can double the monthly cost. This is the part of the market where advice earns its fee.
No fee for the initial conversation, and no obligation. We usually reply the same working day.
Common questions
Two to three weeks is realistic where the valuation and legal work run smoothly, and some lenders will move faster on a straightforward case with a clear title. That compares with six to twelve weeks for a conventional mortgage, which is the reason bridging exists.
Interest is quoted monthly, commonly between 0.55% and 1.2% per month depending on loan to value, property type and your experience. Add an arrangement fee of 1% to 2%, valuation and legal costs on both sides, and sometimes an exit fee. On a £200,000 bridge over six months you would typically be looking at £12,000 to £18,000 all in.
Yes — that is one of the classic uses. Mainstream mortgage lenders require a property to be habitable, so a building without a kitchen or bathroom cannot be mortgaged conventionally. A bridging lender will fund the purchase and the works, and you refinance onto a standard mortgage once the property is finished.
Usually not. Most bridging is arranged with interest rolled up or retained, so nothing is payable monthly and the total is settled when you repay the loan. That protects cash flow during a refurbishment, but the balance grows each month, so a delayed exit costs real money.
It depends. A bridging loan secured on a property you live in or intend to live in is a regulated mortgage contract. A bridge secured on an investment property or taken by way of business is unregulated, meaning no Financial Ombudsman recourse and no FSCS protection. We will tell you which category your case falls into before you proceed.
You move onto a default rate, which is typically double the normal monthly rate, and the lender can begin recovery action against the security. Some lenders will agree a short extension for a fee where the exit is clearly in progress. This is why the exit route needs to be agreed before the loan is drawn, not after.
A twenty-minute conversation will tell you what you can realistically borrow, what it will cost and whether it is worth doing. It is free, and we will tell you honestly if the answer is no.
About these figures. Loan to values, terms and cover ratios on this page describe what lenders in this sector were offering as at August 2026. They are market ranges, not an offer or a quotation, and they are not based on cases we have placed. What any individual lender will do depends on the business, the property, the covenant and your circumstances. Criteria change frequently — ask us for the current position before you rely on any figure here.