Bridging Loan For A Self Build

Bring your dream home to life with fast, flexible finance designed for self-build projects. Clifton Private Finance specialises in bridging loans for UK self-builders.

Borrow from £50,000 to £25 million | Terms from 3-18 months | Rates from 0.55%

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Bridging Loan For a Self Build

A self-build project demands precision, vision, and timely funding. Bridging loans for self-builds provide the short-term capital needed to break ground swiftly, whether you’re constructing a bespoke home or a commercial property.

Clifton Private Finance works with specialist UK lenders to deliver tailored solutions for self-builders. From rapid approvals (as little as 5-7 days) to flexible repayment terms and interest roll-up options, we ensure your project stays on track without financial delays.

Once reserved for professional developers, self-build bridging finance is now accessible to homeowners and entrepreneurs alike. Let us streamline your funding process, so you can focus on creating a property that reflects your unique vision.

  • Market leading bridging loans from £50,000 to £25m. Rates from 0.55% pm. Lower rates for £1 million+ loans
  • Finance within 7 working days is possible depending on your circumstances.
  • Bridging finance for business purposes (purchasing land or new premises, deposit for new purchase)
  • Rolled up interest options

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 For A Self Build

with Fergus Allen & Sam Hodgson

Last Updated: 12/02/2025

Can You Get a Bridging Loan for a Self-Build?  

Yes, it's possible to get a bridging loan for a self-build project. Bridging loans are short-term financing options typically used to "bridge" the gap between the purchase of a new property and the sale of an existing one or for other short-term financing needs. 

For self-build projects, where you're constructing a property from scratch, a bridging loan can be used to cover expenses during the construction phase until you secure a mortgage or other long-term funding. These loans usually have more flexible terms than traditional mortgages, and they can be tailored to suit the specific needs of your project. 

When applying for a bridging loan, you'll likely need to provide detailed plans and cost estimates for the construction and information about your financial situation. Lenders will assess the viability of the project and your ability to complete it within the agreed-upon timeframe.  

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Is It Hard To Get a Bridging Loan? 

No, the process of securing a bridging loan is relatively simple in comparison to a mortgage. While bridging lenders will assess your financial circumstances and creditworthiness, they will put much less emphasis on it than with a mortgage or personal loan.  

The main obstacle you’ll need to overcome is finding a watertight exit strategy to repay the loan. Because bridging loans are more short-term, they typically aren’t repaid monthly. Your repayment sum, including interest, will be rolled up and repaid at the end of the loan term. 

This means you’ll need a sure-fire method of repaying this sum within the loan terms. This could be through selling a property or a business or refinancing your bridging loan to a mortgage. Bridging loans are inherently flexible, so there are many means you could use to repay the loan. Bridging lenders will assess the reliability of this exit strategy, and if you are successful, funds will typically be released quite quickly. 

If you have confidence in your exit strategy and you need access to funds exceptionally quickly, it is also possible to fast-track your application for an additional fee.  

Watch our video below - Bridging Loans Explained: Costs, Timescales, Examples, & How To Get One

How Much Can I Borrow for a Self-Build? 

Our bridging loan calculator is a valuable tool that helps simplify the process – it’ll work out an indicative quote and support the initial stage of finding out if bridging finance is the best option for you.

What Are the Stages of a Self-Build? 

Building your own home is a complex undertaking that can be made much easier with meticulous planning and a great team.  

Throughout each stage of the self-build process, it's essential to stay organised, communicate effectively with contractors and suppliers, and be prepared to adapt to any challenges or changes that may arise. Working with experienced professionals, such as architects, builders, and project managers, can help ensure a successful outcome for your self-build project. 

Each project can vary, but here are the key stages of a self-build project: 

  • Set a Budget - Evaluate your financial resources and determine the scope of your project. In the early processes of any development project, research is key. Allocate funds for buying land, design, construction, and finishing. It’s also common for development projects to go over budget, so make sure to include a 20% overspill in your budget. 
  • Planning & Pricing Materials - Planning and costing materials allow you to develop a comprehensive budget for the project. By accurately estimating the costs of materials needed for construction, you can ensure that your budget is realistic and aligned with your financial resources. 

By identifying the types and quantities of materials required for each stage of the project, you can ensure that materials are ordered and delivered in a timely manner, minimising delays and disruptions to the construction process. 

  • Finding a Location - You’re building the home you always dreamed of, and naturally, it’s likely that you have an idea of where you want to build your home in your mind already. Before you begin looking for a plot, it’s important to consider local building regulations, availability of land and your overall budget. Are you building a 3 bedroom in the city, or your own grand design in the countryside? The square footage of land will run up a significantly larger cost in a sought-after location. Once you feel confident about what you are looking for, consult with estate agents or a land agent to find some options.  
  • Obtaining Planning Permission - Planning permission is crucial in the UK as it ensures that any proposed development or construction project complies with local planning policies, regulations, and sustainability objectives. Obtaining planning permission is necessary to legally proceed with a construction project and avoid potential fines, enforcement actions, or delays. 

In many cases, it's advisable to try to obtain planning permission for land before you buy it. You can get planning permission after you buy a property, which can be an option if there are a lot of other buyers are interested. It’s worth seeking advice from a solicitor if you’re planning on buying development land without planning permission to evaluate the likelihood that you’ll be granted planning permission.  

  • Securing Funding - One of the most crucial stages of a home build project. In some cases, once-in-a-lifetime projects like this can be funded with personal savings, but there are financial solutions available for individuals where this isn’t the most suitable option.  

Self-build mortgages and bridging loans (which can be refinanced to a mortgage) are the most common ways to fund a self-build. To get a clear idea of your funding options, it’s worth consulting an experienced finance broker. A specialist broker will have connections with variety of lenders and can find you the most suitable deal.  

  • Building - After all of these steps are complete, you can begin your build. This exciting process typically takes around 12 months, although it can take more or less time, depending on your experience. The team you’ve assembled will be a huge asset during this process, and you will hopefully have a unique home that you can enjoy for decades to come.

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Can You Pay Off a Bridging Loan Early? 

Yes, in most cases, you can pay a bridging loan early. A key advantage of using a bridging loan is that it is relatively flexible and quick to access. 

With flexibility being a main selling point of bridging finance, it’s uncommon for these loans to have early repayment fees. Additionally, bridging loans are repaid in a lump sum, so it makes sense to repay the loan as soon as you have the funds.  

This also means you’ll typically only pay interest on the months you have the loan for, which helps keep costs to a minimum.  

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How Long Does It Take to Complete a Self-Build? 

A rough estimate for the duration of a self-build is between 12 - 24 months. By their nature, each self-build is unique. How long your self-build project takes will depend on the type of property you’re designing, who you’re working with and your own development experience. 

In many cases, your development experience will play a role in how long the process takes because experienced developers may have a better understanding of the various tasks involved, potential challenges, and how to navigate them efficiently.

Furthermore, the quality and experience of your contractors plays a role in ensuring your project runs smoothly. High-quality contractors typically have extensive expertise and experience in their respective fields. They understand best practices, regulations, and industry standards, allowing them to deliver work of superior quality and efficiency. 

Reputable contractors are reliable and accountable for their work. They adhere to project timelines and budgets, communicate effectively with clients, and take responsibility for resolving any issues or concerns that arise during the project. This is crucial to reducing hiccups in the development process that could otherwise cost you time and money. 

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What is the Repayment Period for a Bridging Loan? 

Bridging loans are usually repaid within 12 months, but there can be a level of flexibility surrounding this. It’s common for bridging lenders to offer terms tailored to your circumstances, so if you have an assured means of repaying the loan within 16 months, it’s possible this can be arranged.  

Commercial bridging terms can be as long as 36 months. However, it is worth noting that if you extend the terms on a bridging loan, you will have to pay interest for the additional months, which can increase the overall cost of your project. 

How Do I Get Funding for a Self-Build? 

Bridging loans aren't typically offered by high street banks anymore, so you'll likely need a specialist lender. Each lender will have its own approach to assessing risk and the feasibility of each application. 

At Clifton Private Finance, we have an award-winning bridging team dedicated to driving results. We have relationships with lenders across the bridging market and access to the best deals. Our bridging brokers can guide you through the process and liaise with lenders on your behalf.  

Our team can advise you on the best financial solution and connect you with the most suitable lender for your circumstances. To see what we can do for you, call us at 0117 205 4827 or book a consultation below. 

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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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