Bridging and Development Finance

At DAS, we know that sometimes, time is key. Whether you’re renovating a housing complex, trying to finance an auction purchase or dealing with a last minute collapse of a finance plan, we are committed to finding finance solutions quickly and efficiently for our clients. We work closely with our lending partners to ensure you get your money exactly how you want it- only faster.

  • Speedy turnaround
  • No early settlement fees
  • 1 to 24 months
  • Commercial and residential properties
  • Light, medium and heavy refurbs
  • Conversions (including commercial to residential)
  • Interest roll up, retained or serviced
  • Up to 80% LTV (100% if additional security is offered)
  • Market leading rate

At Das, we specialise in bridging finance, only working with lending partners who have a track record of fast completion in order to meet deadlines.

What are bridging loans?

Bridging loans are one of the many financial products that can help you with the purchase of your next property. Bridging loans are short-term, interest-only loans which are used to "bridge" the gap between buying and selling a property. Bridging is often used when a borrower needs money to purchase a new home while their existing home is sold or when they want to use some of their equity from their existing property to fund building works or refurbishment projects on another property before it's complete and ready for sale. Many lenders offer bridging loans for both commercial and residential purposes.

These loans are available from high street banks, building societies, specialist lenders and private equity funds. They may be called bridging loans, interim loans or bridging finance.

For most people who want to buy a property but don't have all their deposit saved up yet, a bridging loan is the only way they can really make their ideal purchase happen.

Rates for bridging finance are typically higher than standard mortgages

Although bridging loans are typically more expensive than standard mortgages, this is because they are short-term in nature. In addition to being secured against property when they have been taken out on a home, bridging loans can also be secured against other assets such as your car or life assurance policy.

Bridging loans are typically for 12 months but you may be able to get a longer repayment term if required. Some lenders will also offer shorter repayment terms if required.

You should expect to pay a higher rate of interest with a longer repayment period, as the lender is taking on more risk that you won’t be able to repay them in full over the course of 12 months (or whatever your usual loan period is).

The lender will require a minimum deposit of around 20% 

  • The lender will require a minimum deposit of around 20% with the balance paid when the property is sold.
  • You can pay the balance in instalments, or in one go if you have enough money.

Bridging finance can be used to fund property development or refurbishment projects

Bridging finance can be used to fund property development or refurbishment projects - a popular use has been in funding time-limited 'buy to let' investments. There are several types of bridging loans available, including open-ended and closed-ended bridging finance.

Open ended bridging finance is the most commonly used type of bridging loan. This is because it allows you the flexibility to repay your loan at any point before maturity and can be extended if more time is needed for the completion of your project. In contrast, closed-ended loans have fixed repayment dates and cannot be extended after they have matured for any reason, even if there are still outstanding works on site which require additional funds.

Acceptable security for a bridging loan

Security can be a residential or commercial property, land or plots with planning permission or land/property portfolios/portfolio's where there are existing assets with development potential. The following criteria must be met:

  • The security should be registered in the name of the borrower (a company) and not in the name of any individual(s).
  • There must be no other secured debt over the same asset as this may result in complications when trying to release funds on completion of sale.

Bridging loans can be useful if you're buying a new home before your current one sells.

If you are moving quickly, or if you need to sell your current home before buying a new one, a bridging loan could be the answer. It's also useful if you need to move house but don't want to sell your old property until it's worth more than what you paid for it.

A bridging loan is an unsecured personal loan that can be used for any purpose, including buying and selling property or paying off existing debts. They're typically offered with interest rates between 7% and 15% APR (annual percentage rate) and can last for anything from 6 months up to 5 years.


With a bridging loan, you can avoid having to pay the fees associated with remortgaging or taking out another mortgage. This can be particularly useful if you're buying a new home before your current one sells. Bridging loans are also available for property development projects and refurbishments - in this instance, it's usually necessary to provide some form of security for the loan amount.

Contact DAS Finance today to find out more.