Commercial property bridging loans are one of the most powerful tools in an investor's or developer's armoury — enabling fast acquisitions, funding refurbishment and conversions, and bridging gaps that standard commercial mortgages simply cannot fill. The commercial bridging market is more specialist than residential, the lender pool is smaller, and the underwriting is more nuanced — but for the right deal, it provides speed and flexibility that no other product matches.
A commercial bridging loan is a short-term secured loan — typically 1–18 months — where the security is a commercial or semi-commercial property. It operates on the same fundamental principle as residential bridging: fast funding now, repaid from a future event (sale, refinance, letting and remortgage). The key difference is that commercial assets are more varied in quality, location, and liquidity — which affects LTV, rate, and lender appetite.
Commercial bridging is unregulated — there is no FCA oversight of these loans as there is for residential bridging. This means more flexible underwriting and faster processing, but also means borrowers don't benefit from the same consumer protections. Using an experienced specialist broker is essential.
| Property Type | Lender Appetite | Typical Max LTV |
|---|---|---|
| Office — prime city/town centre | High | 65%–70% |
| Retail — high street / shopping centre | Moderate (location-dependent) | 60%–65% |
| Industrial / warehouse | High — strong demand | 65%–70% |
| Mixed-use (commercial + residential) | High | 65%–70% |
| Leisure (pub, restaurant, hotel) | Moderate — specialist lenders | 55%–65% |
| Vacant commercial | Available — lower LTV | 55%–60% |
| Petrol station / drive-through | Specialist lenders only | 50%–55% |
Commercial investment opportunities — particularly off-market deals and auction purchases — require fast completion. A standard commercial mortgage takes 6–12 weeks. Commercial bridging completes in 1–3 weeks, allowing investors to secure deals that cash-only or mortgage-funded competitors would miss.
Banks won't lend on vacant commercial property via a commercial mortgage — no rent, no mortgage. Bridging funds the acquisition of a vacant property while it's let up, refurbished, or converted. Exit is onto a commercial mortgage once the property has a tenant in place.
Commercial to residential conversions under permitted development rights (offices to flats, etc.) require the commercial property to be bought before conversion works start. Bridging funds the purchase; development finance or residential mortgages fund the conversion and exit.
Commercial mortgages require a minimum lease term — typically 70+ years for leasehold. Bridging has no such restriction, allowing investors to acquire leasehold commercial properties with short leases and extend them before refinancing onto a commercial mortgage.
Owner-occupied commercial property can be bridged to release working capital for the business — faster than a commercial remortgage and without the long-term commitment.
| Product | Monthly Rate | Max LTV | Typical Term |
|---|---|---|---|
| Residential bridging (first charge) | 0.55%–0.90% | 75% | 1–18 months |
| Commercial bridging (prime) | 0.70%–0.95% | 70% | 1–18 months |
| Commercial bridging (secondary) | 0.90%–1.25% | 60% | 1–12 months |
| Semi-commercial (mixed use) | 0.75%–1.00% | 70% | 1–18 months |
In addition to the monthly rate, expect: arrangement fee 1%–2%, valuation fee £1,000–£3,000, and legal fees for both sides. Commercial valuations are more expensive and take longer than residential — factor this into your timeline.
💡 Valuation timing: Commercial RICS valuations typically take 1–2 weeks longer than residential. On a time-sensitive deal, instruct the valuer the same day as DIP submission — don't wait for formal lender approval.
Tell us about the property, the loan amount you need, and your exit plan. We'll identify the right commercial lenders and get indicative terms the same day.
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