The situation
An experienced investor is considering a property that needs refurbishment before it can be let. They request a £720,000 gross bridging facility and expect a buy-to-let mortgage to repay it after the works. Their own funds must cover the remaining purchase requirement, works, costs and an appropriate contingency.
What makes this more involved?
A gross facility is not necessarily the cash released at completion: fees and retained or rolled-up interest can affect the net funds and the amount due at exit. A future rental valuation and long-term mortgage have not yet been established. A fast purchase deadline does not remove those questions.
How I would approach it
Build the full funding picture
Set out the price, works, taxes, professional fees and available cash. Identify what the facility would actually release, how interest is paid or added and whether further drawdowns depend on progress or valuations.
Assess the exit before entry
Check the intended property configuration, ownership and rental model against potential long-term lending criteria. Consider both the expected value and rental assessment, rather than relying only on an uplift in value.
Allow for a difficult timetable
Review works duration, permissions, inspections and legal dependencies. Consider the consequences of delays, lower rent or a lower valuation, including extra cash requirements and any credible alternative exit.
What could change the plan?
What if the refinance is smaller than expected?
The borrower could need additional funds to clear the bridge. A sale is only a meaningful alternative where it is realistic on price, timing and costs; it should not be treated as an automatic backup.
Can the bridge simply be extended?
An extension is not guaranteed and may involve further assessment, costs or a different facility. The repayment deadline should be treated as a real commitment from the outset.
What this would establish
Decide whether the project has a credible funding and repayment plan at acceptable risk. That may mean changing the structure, contributing more cash or not proceeding on the proposed timetable.
Does arranging a bridge guarantee the later mortgage?
No. The exit mortgage is a separate lending decision. Criteria, valuation, rent, property condition and the borrower’s circumstances may all affect it when the time comes.
Link to this answerEducational content updated 24 September 2026. General information; individual advice requires an assessment. Lender criteria can change.
Further reading: The Mortgage Works: property and condition criteria. These references explain general criteria and do not indicate lender acceptance of this example.