Bridging finance FAQs

A clean purchase with a desktop valuation can complete in around two weeks. Most cases take two to four weeks. The usual hold-ups are the valuation and the legal work, which is why we instruct both as soon as terms are agreed.

Usually not. Most bridges retain the interest from the loan at the start or roll it up to be paid when you redeem, so there's nothing to pay month to month. Serviced interest is available if you'd rather pay as you go.

It's how you'll repay the loan at the end: selling the property, refinancing onto a mortgage, or another source of funds. It's the first thing every lender asks about, so have a clear answer before you apply.

Yes. Lenders on our panel consider every experience level. Expect a little more scrutiny of the plan and the exit, and some products, such as below-market-value bridges, are for experienced investors only.

We're paid a fee by the lender when your loan completes. If a broker fee to you applies on a case, we tell you the amount in writing before you commit to anything.

Not through us. Loans secured on a home you or your family live in are regulated by the FCA, and Capitara only arranges business-purpose loans on investment and commercial property. If that's what you need, speak to an FCA-authorised mortgage adviser.

It depends what the property is used for. A loan secured on a home you or a family member live in is regulated by the FCA. Loans on investment and commercial property for business purposes are not. Capitara only arranges unregulated, business-purpose bridging.

Often, yes. Bridging lenders focus on the property and your exit rather than your credit score. Recent or unsatisfied defaults and CCJs will affect the rate and maximum LTV, so tell us about them at the start.

On a purchase you'll usually need at least 25% of the price, as most lenders cap borrowing at 75% LTV. You can sometimes reduce this by offering a second property as additional security.

Speak to us early. Lenders can often extend a loan, or we can refinance onto another bridge or term loan. Leaving it until the deadline passes means default interest and fewer options.

Yes, but call us the same day. It's much easier to complete in time when we start early, and some lenders need a full valuation that takes time to book.

Yes. The deposit you paid on the day counts towards your equity in the deal. The bridge funds the balance up to the lender's maximum LTV.

Where a property is bought below market value, some lenders lend against the valuation rather than the price, up to around 90% of the purchase price. This is usually for experienced landlords and traders.

Heavy projects usually need some track record, either yours or your professional team's. First-time investors are better suited to light refurbishments, which most lenders consider at any experience level.

Lenders normally fund the works in full on top of the purchase loan, subject to the overall limits on LTV and loan to GDV. You'll still need a deposit for the purchase.

Cost overruns are usually yours to fund. Build a contingency of at least 10% into your budget, and tell us early if the project is changing so we can talk to the lender.

Not through Capitara. A loan secured on a home you or family live in is regulated by the FCA and must be arranged by an FCA-authorised adviser.

On simple residential cases an automated valuation can be used for lower LTVs. Larger or more complex cases need a desktop or full valuation.

Yes. Lenders ask the purpose of the funds and how you'll repay. Business purposes include buying property, refurbishment and working capital.

Start two to three months before your development loan expires. That leaves time for valuation and legals without risking default interest.

Often, yes. If the completed value is well above your development debt, an exit loan up to the lender's maximum LTV can release some of your profit.

That's fine. The exit loan is sized on the remaining unsold units, and each sale pays down part of the loan.

Some lenders will consider it, especially on smaller schemes with an experienced contractor and professional team. Expect lower leverage than an experienced developer would get.

Yes. Development finance needs full planning in place. To buy a site before consent, a land bridge at a lower LTV is usually the answer.

You repay from sales, or refinance onto developer exit finance or a term loan. See our developer exit page.

A building with both commercial and residential parts on one title, such as a shop with a flat above. Lenders usually want the commercial element to be no more than around 60% of the property.

Often, on a bridge, at a lower LTV. The exit plan matters more: who will occupy it and how you'll refinance or sell.

Yes. We can arrange 2 and 5 year fixed commercial and semi-commercial term loans for the exit from your bridge.