Whether you are considering bridging finance for the first time or arranging your tenth facility, clear answers matter. This page addresses the questions most frequently asked by business owners and property investors across England and Wales.
If your specific question is not covered here, get in touch for a confidential discussion.
General Questions
What is a bridging loan?
A bridging loan is a short-term financing solution secured against property. It provides rapid access to capital, typically for periods of 1 to 24 months, bridging the gap between an immediate funding need and a longer-term solution such as a mortgage, property sale, or business event.
Who can apply for a bridging loan with Mallard Bridging?
Mallard Bridging provides business and investment finance only. Borrowers include limited companies, LLPs, partnerships, sole traders operating in a business capacity, and individual investors using property for business or investment purposes. We do not lend for personal use or owner-occupied residential purposes.
What areas do you cover?
Mallard Bridging lends against property located in England and Wales. We do not currently lend against property in Scotland or Northern Ireland due to differences in property law and the Land Registry system.
What is the difference between a first charge and a second charge bridging loan?
A first charge facility is the primary security on the property. A second charge sits behind an existing mortgage, allowing you to access equity without disturbing the first lender. First charge facilities typically offer better pricing, while second charge arrangements preserve favourable existing mortgage terms. Our guide to bridging loan types explains each structure in detail.
Is a bridging loan the same as a mortgage?
No. A mortgage is a long-term facility, typically 10 to 30 years, with monthly repayments based on income affordability. A bridging loan is short-term, typically under 18 months, with the full amount repaid at exit through a defined strategy such as property sale or refinancing. Bridging facilities focus on property value and exit viability rather than income multiples.
Costs and Fees
How much does a bridging loan cost?
Pricing is individually assessed based on your loan-to-value ratio, property type, term, charge position, and exit strategy. At Mallard Bridging, all costs — setup fees, legal fees, and interest — are rolled into a single gross loan amount. You receive the net amount you need and repay one figure at exit. There are no monthly payments and no separate invoices. For a detailed breakdown, see our guide to bridging loan costs and fees.
Are there any upfront fees?
No. Mallard Bridging does not require any upfront payment. All setup costs, legal fees, valuation costs, and interest are rolled into the gross loan amount and repaid at exit.
What are exit fees?
Exit fees are charges some lenders apply when the loan is repaid. Mallard Bridging charges £0 in exit fees. Additionally, if you repay on or before the agreed date, a timely repayment discount reduces your total cost.
How is interest calculated?
Interest is rolled up (retained) throughout the term and added to the loan balance. There are no monthly payments. The total amount due at exit includes the original net loan plus all rolled-up interest and fees. This structure means you know the complete cost before committing.
The Application Process
What do I need to apply?
For an initial discussion, a brief outline of your requirement is sufficient: the property involved, the amount needed, and your planned exit strategy. For formal application, you will need property details, proof of deposit or equity, identification, credit search consent, and exit strategy documentation.
How long does the application take?
Mallard Bridging provides initial decisions within one working day, often within hours. Formal approval and funding timelines depend on property type, valuation requirements, and legal complexity. Straightforward first charge deals can complete within days, while more complex transactions may take two to three weeks.
What is a desktop valuation?
A desktop valuation is an assessment of property value conducted remotely using comparable sales data, property records, and market information. This approach is faster than a physical inspection and is the standard valuation method used by Mallard Bridging for most transactions.
Do I need a solicitor?
Yes. Both borrower and lender require legal representation to complete the charge registration and handle due diligence. Mallard Bridging works with a panel of experienced property finance solicitors who understand tight deadlines.
Can I apply through a broker?
Yes. Many borrowers approach Mallard Bridging directly, while others work through intermediaries and brokers who specialise in property finance. Both routes are equally supported.
Property and Security
What types of property are accepted as security?
Mallard Bridging accepts a broad range of property types across England and Wales:
- Buy-to-let residential — single tenanted units, portfolios, and multi-lets
- Houses in multiple occupation (HMOs) — licensed and unlicensed
- Commercial premises — offices, retail units, warehouses, industrial units
- Mixed-use buildings — ground-floor commercial with upper-floor residential
- Hotel and leisure properties — trading and non-trading
- Semi-commercial assets — properties with both residential and commercial elements
- Land with planning permission — residential and commercial development sites
- Auction purchases — where the buyer holds a mortgage on another asset used as additional security
Can I use a property I do not yet own as security?
If you are purchasing a property, the facility can be secured against the property being acquired. This is the standard arrangement for auction finance and straightforward purchase transactions.
Can I secure the loan against more than one property?
Yes. Where a single property does not provide sufficient LTV headroom, additional properties can be used as cross-collateral to achieve the required loan amount or improve terms.
What is the maximum loan-to-value ratio?
Most facilities work to 65-75% LTV. Where additional security is available, or the transaction profile is particularly strong, higher leverage may be achievable on individual assessment.
Have a Question Not Answered Here?
Our bridging finance specialists are available Monday-Friday, 9:00 AM - 5:30 PM.
Speed and Timelines
How fast can funds be released?
Repeat clients with all details on file could receive funds in as fast as 24 hours. Prepared new borrowers with complete documentation typically complete within 48 hours for straightforward first charge deals. All timelines are subject to satisfactory valuation, documentation, and legal process.
Can bridging finance meet a 28-day auction deadline?
Yes. Auction finance is one of the most common uses for bridging. Pre-approval can be arranged before auction day, with completion structured to meet the 28-day deadline.
What causes delays?
The most common sources of delay are incomplete documentation at application stage, slow consent from first charge lenders (for second charge facilities), and complex legal title issues. Providing full information at the outset and instructing solicitors promptly reduces turnaround significantly.
Exit Strategies
What is an exit strategy?
Your exit strategy is the plan for repaying the bridging facility at the end of the term. Every application must include a clear, credible exit. Common exits include refinancing onto a longer-term mortgage, selling the secured property, receiving proceeds from another asset sale, or repaying from business revenue. For comprehensive guidance, see our exit strategy guide.
What happens if my exit strategy fails?
If your original exit is delayed, options may include extending the facility, refinancing onto a new bridging loan, or agreeing a revised timeline with the lender. Communication with your lender early is important — delays reported promptly can often be managed, while unexpected defaults create more difficulty. Our guide to refinancing a bridging loan covers this scenario in detail.
Can I repay early?
Yes. Early repayment is available and there are no penalties for repaying before the agreed term end. At Mallard Bridging, a timely repayment discount may apply, reducing the total cost if you repay on or before the agreed date.
Specialist Scenarios
Can a limited company take out a bridging loan?
Yes. Limited companies, SPVs, and holding companies regularly use bridging finance for property acquisitions, development projects, and working capital. Our guide to bridging loans for limited companies covers the specific requirements and structuring options.
Can I use bridging finance to settle an HMRC tax bill?
Yes. Business owners facing urgent corporation tax, VAT, or other HMRC obligations use property-backed bridging to settle the liability and avoid penalties or enforcement action. See our guide on bridging loans for HMRC tax bills for the process and timelines.
Can I release equity from a property I already own?
Yes. Equity release through bridging allows business owners and investors to unlock capital tied up in existing property assets without selling. The facility is secured against the property and repaid through your chosen exit strategy.
Is bridging finance available for buy-to-let investments?
Yes. Buy-to-let bridging is one of the most common uses of short-term property finance. Investors use it to acquire rental properties quickly, fund refurbishment before tenanting, or bridge the gap while arranging a long-term buy-to-let mortgage.
Regulation and Compliance
Is Mallard Bridging regulated by the FCA?
Mallard Bridging is not authorised or regulated by the Financial Conduct Authority. We provide business and investment bridging finance only. We do not offer consumer credit, personal loans, or residential mortgages for owner-occupation. If you require a regulated facility for an owner-occupied property, you will need an FCA-authorised lender.
What protections do I have as a borrower?
While unregulated bridging loans are not covered by the Financial Ombudsman Service or FSCS, Mallard Bridging follows responsible lending practices. All terms are provided in writing before commitment, pricing is fully transparent with all costs rolled into the gross loan amount, and every borrower must demonstrate a viable exit strategy.
Can I use a bridging loan for my own home?
No. Mallard Bridging provides business and investment finance only. A facility secured against a property the borrower intends to occupy as their primary residence would require FCA-regulated lending, which we do not offer. This applies to all borrower types, including directors of limited companies.