Get Your Bridging Loan Agreement in Principle

We can provide an Agreement in Principle for your bridging loan within 24 hours if your situation is urgent, with our fee only charged if/when you make your full application.

Giving you the power to make offers and move quickly in the property market.

Borrow from £50,000 to £25m for 12 months, from as low as 0.55% per month.

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Bridging Loan Agreement in Principle

A Bridging Loan Agreement in Principle (AIP) is a conditional offer from a specialist lender indicating their willingness to provide you with a specific amount of bridging finance, subject to final checks. It's a crucial first step that provides the confidence and credibility needed to act decisively on property opportunities.

Unlike a mortgage application which heavily scrutinises your income and credit history, a bridging loan AIP focuses on the strength of your security (the property/assets) and your proposed exit strategy - so, they're a lot quicker to produce.

Securing an AIP through an experienced broker like Clifton Private Finance fast-tracks your application, confirming your borrowing potential and allowing you to move forward as a powerful, credible buyer.

  • Agreement in principle - same day "AIP"
  • Market leading bridging loans from £50,000 to £25m
  • Finance for downsizing or upsizing residential property (on a regulated basis)
  • Rates from 0.55% pm
  • Lower rates for £1 million+ loans
  • Automated valuation option for properties up to £1 million
  • Terms from 1 month

Bridging Case Studies

Low Cost Drawdown Bridging Loan for Development Exit | Case Study
Low Cost Drawdown Bridging Loan for Development Exit
Area
Kent
Capital Raised
£900k
Date
February 2025
Commercial Bridging Loan to Refinance Hotel Before Sale
Commercial Bridging Loan to Refinance London Hotel Before Sale
Area
London
Capital Raised
£13.8m
Date
January 2025
Resolving Complex Debt Issues with a Bridging Loan | Case Study
Resolving Complex Debt Issues with a Bridging Loan
Area
Romford
Capital Raised
£135k
Date
November 2024

See All Bridging Case Studies

Why Our Customers Trust Us

With expert guidance, bridging loans can provide an essential, versatile, and cost-effective solution to a wide range of property transactions.

Here are 3 reasons our clients trust our advice and service.

Market-Leading Rates

We provide access to market-leading rates for every client, thanks to our relationships with close to 100 bridging lenders.

bridging loans

Multi-Award-Winning Team

Our team of bridging advisers have over 40 years of experience and are qualified to the highest level. We're proud to have numerous customer service awards to our name.

bridging loans

Fully Independent

As an independent brokerage, we focus on your best interests when comparing finance: from costs and terms to speed of service.

Our Experts

Our dedicated bridging finance team are CeMAP qualified and have over 40 years of experience.

Meet The Team

Fergus Allen

Head of Bridging CeMAP

Mathew Phillips

Senior Finance Broker CeMAP

Paige Dumpleton

Finance Broker CeMAP

How We Work

1. Get a Customised Quote

Our bridging specialists will take a detailed look at your plan and provide a sense-check on whether it’s achievable, what the terms and cost estimates are, and if indeed bridging finance is the best route for you.

2. Secure A Decision in Principle

Within 24-48 hours, we should have your Decision in Principle secured from the lender. You can present this to estate agents and sellers to showcase your buying power. We can also speak to each party directly to strengthen your case.

3. Submit Your Application

When you’ve had your offer accepted, we’ll submit your application, and the valuation process and legal work can begin. We'll act as a mediator between all parties, making sure the deal is progressing as efficiently as possible and smoothing out any complexities along the way.

4. Finance Your Purchase

We will keep you updated and informed until you receive funds from the lender and your transaction is complete. And for any queries you have throughout the course of your loan, we’re always here to help.

Speak to a bridging specialist today

Make your property ambitions a reality and find out if bridging finance could work for you. We’ll guide you through the process and take care of the heavy lifting.

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Bridging Loan Agreement in Principle - a Guide

with Fergus Allen & Sam Hodgson

Last Updated: 02/07/2025

Hesitation can often mean losing out on the perfect deal. While a bridging loan itself is designed for speed, securing an Agreement in Principle (AIP) beforehand elevates you to the status of a near-cash buyer. It demonstrates to sellers, estate agents, and auction houses that you are a serious, credible party with pre-vetted funding in place.

An AIP is particularly vital for bridging finance because it allows you to:

  • Bid Confidently at Auction: Knowing your funding is provisionally approved means you can bid up to your limit without worrying if you can meet the strict 28-day completion deadline.
  • Act Quickly on Opportunities: When an off-market property or a bargain becomes available, you can make a decisive offer immediately, putting you ahead of buyers who are still arranging their finance.
  • Strengthen Your Offer: An AIP attached to your offer can make it more attractive than a higher offer from a buyer stuck in a lengthy mortgage chain.
  • Plan with Certainty: It provides a clear, realistic budget for your project, including the purchase price and any planned renovation costs.

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What Information is Needed for a Bridging Loan AIP?

Applying for a bridging loan AIP differs from a mortgage AIP. While a mortgage focuses heavily on your personal income and affordability, a bridging lender is primarily concerned with two key elements: the security for the loan and your exit strategy. To pre-approve your application, a brokers like us will need to discuss:

  • Your Personal Details: Name, address, and status (e.g., individual, limited company).
  • The Purchase Property: Details of the property or land you intend to buy, including the purchase price and address.
  • Security Offered: Details of the assets you will secure the loan against. This could be the equity in your current home, other properties in a portfolio, and/or the property you are purchasing.
  • Loan Amount Required: The total amount you need to borrow.
  • Your Exit Strategy: A clear and credible plan for how you will repay the bridging loan in full at the end of its term (e.g., sale of a property, refinancing to a mortgage).

At this stage, formal valuations and in-depth credit searches are not usually required. The process is designed to be swift, providing a strong indication of lender appetite based on the fundamental strength of the deal.

The Process: How to Get Pre-Approved

1

Initial Consultation

The first step is to speak with a specialist bridging finance broker. You'll discuss your project, borrowing needs, available security, and your intended exit plan.

2

Broker Assessment

Your broker will assess the viability of your plan and identify the most suitable specialist lenders from the market whose criteria match your circumstances.

3

Application Packaging

The broker will package your information into a clear proposal for the selected lender(s). This professional presentation highlights the strengths of your application.

4

Decision in Principle Issued

The lender reviews the proposal and, if they are happy with the fundamentals, issues an Agreement in Principle. This document will outline the proposed loan amount, interest rate, and any key conditions.

5

Making Your Offer

With the AIP in hand, you can now confidently make offers on property, safe in the knowledge that your finance is provisionally secured.

Agreement in Principle vs. a Formal Offer

It's important to understand that an AIP is not a legally binding loan agreement. It is a conditional offer based on the information provided being accurate. The formal offer is issued after the AIP has been accepted and the lender has completed its full due diligence. This typically involves:

  • A formal valuation (or desktop valuation) of the security property/properties.
  • Legal work carried out by solicitors.
  • Verification of identity and other key details.

However, because Clifton Private Finance thoroughly pre-vets applications before approaching a lender, the transition from AIP to formal offer is typically a smooth and predictable process. Any potential issues are identified and resolved early on, ensuring no surprises down the line.

When is a Bridging Loan AIP Most Useful?

While beneficial in many situations, an AIP is almost essential for:

  • Property Auctions: To compete effectively, you must be able to meet the 28-day completion deadline. An AIP gives you the certainty to do so.
  • Competitive Property Markets: In places like London, where multiple offers are common, an AIP can be the deciding factor that gets your offer accepted.
  • Property Development & Flips: An AIP confirms your funding for the initial purchase, allowing you to accurately budget for renovation costs and calculate potential profit margins with confidence.
  • Chain Breaking: An AIP allows you to proceed with the purchase of your new home as if you were a cash buyer, breaking free from a slow or collapsed property chain below you.

The Clifton Private Finance Advantage

Securing an Agreement in Principle for a bridging loan is about a strategic presentation and market access. By partnering with us, you leverage our expertise to ensure the best possible outcome.

  • Whole-of-Market Access: We have established relationships with a vast network of specialist bridging lenders, including private banks and those who do not deal with the public directly.
  • Expert Packaging: We know what lenders look for. We present your case in the strongest possible light, highlighting the viability of your security and exit strategy to maximise your chances of a swift and positive response.
  • Speed & Efficiency: Our process cuts through red tape. We handle the complexities, allowing you to focus on your property search.
  • Certainty & Confidence: Our pre-approval process means that when we secure an AIP for you, it's a reliable indicator of the final finance you will receive, giving you the confidence to move forward decisively.

Why use Clifton Private Finance?

Based in Bristol and Cardiff, Clifton Private Finance has expertise in sourcing bridging loans; we have contacts with all of the leading banks and private lenders across the whole of the market. This means we can always offer our clients the best rates available for their borrowing needs. For examples of bridging loan cases we have completed for a range of funding scenarios please see our bridging loan case studies

If speed is a priority, bridging finance can be arranged quickly depending on your situation. 

Call us on 0117 959 5094 to discuss your AIP requirements

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Frequently asked questions

You can find the most common questions asked about bridging loans below. If you have a question that isn't answered here, please email us at helpdesk@cliftonpf.co.uk

About Bridging loans

Here are some of the most common alternatives to bridging loans:

  • Second-charge mortgages
  • Remortgaging
  • Equity Release
  • Personal Loan
  • Savings or Family Support
  • Development Finance
  • Commercial Mortgages
  • Refurbishment Loans

We break down each of these other financing tools in our full guide to alternatives to bridging loans

While none of these options provide the flexibility, loan size and low interest rates that bridging loans do for property transactions, you may find they are more appropriate finance options for your specific situation.

No, there is no strict age limit for securing a bridging loan. 

Bridging loans are typically 12 months in duration, which means that there aren't age limits in place like there are for mortgages that can last for 25+ years. 

The main example where age may be an issue is if you plan to refinance your bridging loan with a standard mortgage. In which case, you'll need to be eligible for a standard mortgage to qualify for your bridging loan - and if you are approaching retirement age, this could be an issue and you may be rejected for a bridging loan.

However, we work with specialist equity release and lifetime mortgage lenders that can provide a Decision in Principle for later-life lending (if it's feasible) so that your bridging loan can be approved if it makes sense with your broader strategy. 

No high street banks currently offer bridging loans. Instead, bridging loans are provided by specialist short-term finance lenders.

At Clifton Private Finance, we are a whole of market brokerage that deals with multiple bridging loan lenders, and we act as an intermediary between clients and the lender ensuring the process is smooth and hassle-free, and making sure our clients are getting a good deal.

There are two types of bridging finance: regulated bridging loans and unregulated bridging loans.

It simply depends on the intended use of the property you're purchasing. 

When you or a family member intend to live in the property you’re purchasing with your bridging loan, you’ll need a regulated bridging loan.

If you're getting bridging finance on property that you or a family member will not be living in, or if it’s a commercial property, then you’ll need an unregulated bridging loan (commercial bridge loan). 

And if you intend to sell the property to repay your bridging loan (flipping the property) instead of refinancing or selling another property, you’ll get an unregulated bridge loan.

Regulated bridging loans are authorised and regulated by the FCA and are usually locked to a 12-month maximum term.  Unregulated bridging loans, meanwhile, can have extended periods of up to 36 months and are generally more flexible.

If you’re unsure, it’s best to speak to a qualified adviser to go over exactly what you need and find the best bridging loan for you.

Yes, bridging loans are generally considered safe provided they are used for suitable property transactions. Speaking to a bridging loan adviser is recommended if you're unsure about the risks and suitability of a bridging loan for your situation. 

Generally speaking, the main risk of a bridging loan is that if you cannot repay the loan, your property can be repossessed and sold to clear your debt.

For example, if you take out a bridging loan to buy a new property but your existing property fails to sell and you cannot recoup the funds, this could become a risk. However, bridging lenders always require their own valuations for any property involved in a bridging transaction to combat this.

Another example could be that you're unable to secure a mortgage to refinance your bridging loan. At Clifton, we make sure your remortgage plans are sound if this is your bridging loan exit strategy, and can even arrange your mortgage for you through our dedicated mortgage advice service on the other side to smooth the process.

Repayments

You cannot turn a bridging loan into a mortgage, but you can repay a bridging loan with a mortgage and effectively refinance it into a long-term arrangement. 

This is common when buying an unmortgageable property with a bridging loan, carrying out refurbishments, and then mortgaging it once it is wind and water-tight and a new valuation has been carried out. 

This is also common for properties bought at auction where a mortgage would be too slow to arrange, and so a bridging loan is used which is then replaced with a mortgage later.

A bridging loan exit strategy is simply the way in which you plan to repay your bridging loan. 

The most common exit strategies are selling an existing property, selling the property you're purchasing, refinancing with a mortgage, or a combination. 

Other more unique exit strategies can include selling a business, receiving a pending inheritance, or receiving a large tax rebate.

You do not pay monthly instalments towards the capital loan of your bridging loan. Some bridging loans require you to repay the interest accrued each month, but most lenders will actually give you the option to roll this up into the loan value, meaning you repay it with your lump sum at the end and have absolutely no monthly commitments. 

It's worth noting that as soon as you pay off most bridging loans, you stop accruing interest - so, the quicker you pay it off, the less expensive it will be, and there are typically no ERCs (early repayment charges).

If there is a purchase involved, bridging loans are paid from the lender to the lender’s solicitor, then to the client’s solicitor, and then to the seller’s solicitor - so, you as a client will not see the funds in your own account - similar to a mortgage.

If there is no purchase involved (for example, for a bridging loan for home improvements before selling), the funds go from the lender to the lender's solicitor, to the client’s solicitor, and then to the client's bank account. 

In terms of how bridging loans are repaid by you, they are repaid as a lump sum, either at the end of your term or during it. You can choose to either 'service' the interest, so pay the interest back monthly, or roll it up into the value of the loan to also pay this off as a lump sum along with the capital.

Deposits and terms

Regulated bridging loans (for residential properties) are typically 12 months, however, some non-regulated bridging loans for buy to lets and commercial properties can be up to 36 months. 

Some lenders are more flexible on term durations than others, and it can be a case-by-case basis as to whether you'll get approval for a longer loan term.

Almost all regulated bridging loans are short-term, and have a duration of 12 months.

Bridging loans are short-term by nature. However, there can be some flexibility on term length, particularly for unregulated bridging. For example, bridging for development projects, flipping properties, buy to let bridging loans and commercial bridging loans can all have longer terms up to 36 months. 

Some bridging loan lenders allow you to extend your term if at the end of 12 months your property hasn't sold or your alternative funding hasn't come through yet - however, this is down to the lender's discretion and there are no guarantees. It's important to be aware of the risks of bridging loans, and your property can be seized and sold to compensate for failure to repay. 

You can effectively secure a loan for 100% of a property value, but only if you have other property as security to keep your overall loan-to-value below 80%.

So, if you're getting a loan for 100% of a property value, you'll need another property in the background to secure it against. 

The easiest way to see if you're eligible is either to give us a call or use our bridging loan calculator that automatically calculates your LTV.

You don't necessarily need a deposit for a bridging loan in the traditional sense of cash reserves, but you do need security for your loan in the form of another property or asset to keep the loan-to-value below 80% at a maximum.

For example, if you're buying a £300k property with a £300k bridging loan, you'd need another property to secure the loan against along with the property you're buying, or else your loan to value would be 100%. 

Miscellaneous

Understanding the difference between net and gross calculations is essential when comparing deals from bridging loan lenders.

The calculation determines the maximum LTV (Loan-to-Value), how much you can borrow, and how much you will eventually repay.

Here’s the difference:

When calculating the net loan amount for bridging loans, the borrower deducts the loan costs and additional fees (such as the arrangement fee) from the total loan amount - this is known as net loan calculation.

Contrary to that, gross loan calculation is based on the loan amount the borrower can receive without deducting any costs or fees.

In brief, the gross loan calculation represents the total amount available to the borrower, while the net loan represents what the borrower ultimately receives after deductions.

Which calculation do lenders use for bridging loans?

A common complication arises when it comes to comparing bridging lenders, as different lenders advertise their bridging loan products differently. The upshot of this, is that it can become difficult to determine if a higher LTV (loan-to-value) represents the actual amount you could receive.

Lenders typically use a gross loan calculation when advertising or promoting their bridging loan products.

This is because the gross loan amount represents the maximum loan amount the borrower is eligible to receive, and can be used as a marketing tool to attract potential borrowers.

Nevertheless, the net loan calculation is used when negotiating an agreement, which is the amount the borrower will receive after deducting fees and other costs.

Borrowers are responsible for repaying this amount, and lenders will use that amount to determine repayment schedules and other loan terms.

How a broker can help with bridging loan calculations

A broker can assist with bridging loan calculations by providing clarity, expertise, negotiation skills, and a comparison of loan options to help you make more informed decisions.

A first charge bridging loan refers to a bridging loan that is the only charge against the property, i.e., there is no existing mortgage on that property.

A second charge bridging loan is when there is already a mortgage on the property that the bridging loan is being secured against. 

In the event of repossession, the 'first charge' has the legal right to be repaid first, before the 'second charge', which is why second charge loans can be slightly more expensive as they're a greater risk to lenders.

It is still entirely possible to secure a second-charge bridging loan and they are common within the industry. 

Yes, your bridging loan lender will require a new valuation to be carried out for all properties in your bridging loan transaction. 

In some cases, we can work with lenders that can facilitate a 'desk valuation', which is a valuation carried out online based on the local property market, images of the property and the specifications of the home - this can save a considerable amount in fees and speed up your application, but it's not always possible, especially for higher value properties. 

Yes, you can get a bridging loan with bad credit. 

While lenders will look at your credit score and factor it into your application, there is no requirement for regular loan servicing with a bridging loan, and so your income is not analysed and your credit score is significantly less important than with a mortgage. 

Using funds from a bridging loan to purchase a property puts you in a strong position as a buyer - similar to that of a cash buyer. 

Being a cash buyer is attractive to sellers because there is no onward chain requirement, and the funds are ready to go for the purchase.

Using a bridging loan also eliminates the need for the chain to complete, and puts you in a position where funds can be available in a matter of weeks for completion; effectively rendering you a cash buyer to prospective sellers.

Let us do all the hard work of finding the right bridging lender for your circumstances. We secure bridging finance for applications of all types, and we negotiate competitive lending to meet your needs and timescales.

Fergus Allen
Head of Bridging CeMAP

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