Bridging loan requirements are the conditions and documents a lender needs before it will advance a short-term loan on commercial property: suitable security, enough equity, a credible exit, a borrower who passes identity and anti-money laundering checks, and clean legal title. Meet them early and a bridge can move quickly. Miss one and the timetable stalls.
This guide sets out what commercial bridging lenders typically ask for, grouped into borrower, property, exit, works and legal requirements, with a master checklist you can work through before you apply. Exact requirements vary by lender and case, and we will tell you precisely what is needed once we know your deal.
Key takeaways
Bridging loan requirements centre on security, equity, exit, borrower identity and clean legal title.
Expect full KYC and source of funds checks on every borrower, director and significant owner.
Exit evidence differs by route: appraisals for a sale, leases and an agreement in principle for a refinance.
Works projects need a costed schedule of works, a programme and contractor details.
Preparing documents before you apply is the simplest way to speed completion.
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What are the main bridging loan requirements?
Commercial bridging lenders do not work from income multiples. They ask five questions, and every document they request answers one of them.
Is the security suitable? A commercial or investment property that a valuer can value and a lender could sell.
Is there enough equity? A deposit or existing equity, with LTV commonly up to 70% to 75% on a first charge for standard commercial property.
Is the exit credible? A sale or refinance that can realistically happen within the term.
Who is the borrower? Identity, ownership, experience and credit history.
Is the title clean? Legal title, leases and planning that a solicitor can report on.
Which borrower documents and KYC checks do lenders need?
Every lender must verify who it is lending to and where the money comes from. Expect to provide:
Photo ID and proof of address for each individual borrower, director, guarantor and significant shareholder.
Company details for limited company or SPV borrowers: registration number, ownership structure chart and beneficial owners.
Source of deposit and funds: bank statements and an explanation of where your contribution has come from.
Assets and liabilities statement showing your property portfolio and other borrowing.
Credit history disclosure: any CCJs, defaults, arrears or insolvency, explained up front.
Experience CV listing past projects, which matters most on refurbishment and conversions.
Company borrowers are usually asked for personal guarantees. Take independent legal advice from your solicitor before signing, and see our guide to bridging loans for limited companies.
Property information: what the lender needs to see
Address and description: type, size, condition, number of units and use class.
Purchase details: price, memorandum of sale, or the auction legal pack and special conditions.
Tenure: freehold or leasehold, and for leaseholds the lease length and ground rent.
Tenancy schedule with copies of leases, rents, lease expiries and break dates for let property.
Planning history and any current consents or applications.
Photos, floor plans and an EPC where available.
Trading accounts for trading assets such as hotels, pubs and care homes.
The lender's RICS valuer will inspect and report separately. Supplying the information above in advance helps the valuer and the lender's solicitor work faster. See our bridging valuation guide.
Have a deal in front of you?Send us the property and the numbers. We will tell you quickly whether it is fundable.
Exit strategy evidence that satisfies underwriters
A credible exit is one of the most important bridging loan requirements. The evidence depends on the route.
Exit route
Evidence lenders typically ask for
Sale of the property
Agent appraisal of value and marketing period, comparable sales, sale agreed if available
Sale of units after conversion
Planning or prior approval, unit price evidence, works programme
Refinance to commercial mortgage
Leases or heads of terms, rent levels, agreement in principle from a term lender
Refinance to development finance
Planning consent, cost plan, contractor details
Sale of another asset or other funds
Sale agreed on the other property, bank or investor confirmations
Write the exit out with a month-by-month timeline. Lenders are more comfortable when the term clearly covers works, letting and legal time with some headroom.
Refurbishment and works: the extra documents
If the bridge funds works, the lender also needs to understand the project:
Schedule of works with itemised costs and a contingency.
Programme showing how long works will take.
Contractor details and quotes, or your own team's experience if you manage works yourself.
Planning and building regulations position for any structural, use or layout changes.
Value on completion evidence, such as agent opinions on end values or rents.
Heavier projects may need a monitoring surveyor, with works funding released in stages. Our guide to light vs heavy refurbishment explains how lenders categorise works, and our refurbishment bridging page covers the finance.
Solicitor and legal requirements
You will need a solicitor acting for you, and the lender will instruct its own solicitor unless it allows one firm to act for both. The lender's solicitor must be satisfied on:
Title: ownership, charges, restrictions and rights of way.
Searches: local authority, environmental and other searches, or search insurance where the lender accepts it.
Leases and their effect on value and saleability.
Company documents and guarantees for corporate borrowers.
Certificate or report on title confirming the lender can take a valid charge.
Choose a solicitor with commercial property and bridging experience who can respond quickly. Our guide to bridging loan solicitors explains what each side does and what tends to slow legal work.
Your commercial bridging checklist
Use this as a starting point. Tick items off before you apply and the lender's underwriting and legal process will move faster.
Item
Ready?
Photo ID and proof of address for all parties
Yes / No
Company documents and ownership structure
Yes / No
Bank statements showing source of deposit
Yes / No
Assets and liabilities statement
Yes / No
Property experience CV
Yes / No
Credit history explanation, if relevant
Yes / No
Purchase contract, memorandum of sale or auction legal pack
Yes / No
Tenancy schedule and leases
Yes / No
Planning history and consents
Yes / No
Schedule of works and costings
Yes / No
Exit evidence: appraisal, leases or agreement in principle
Yes / No
Solicitor instructed, with contact details
Yes / No
Common gaps that slow a bridging application
Unexplained deposit funds that need further AML checks.
Undisclosed credit issues that surface on a search and dent the lender's trust.
Leases missing or not matching the tenancy schedule.
A vague exit with no agent opinion or refinance evidence.
Slow replies to legal enquiries from either solicitor.
Late changes to loan amount, borrower entity or structure.
On auction purchases, every day counts. See auction bridging finance for how to prepare before you bid.
Unregulated commercial and investment bridging is arranged directly. Any case where the security includes a home you or an immediate family member occupies, including a flat above commercial premises, may be regulated and is introduced to a firm directly authorised by the Financial Conduct Authority. We are not directly authorised by the Financial Conduct Authority ourselves. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Lenders look for suitable commercial or investment property as security, enough equity or deposit, a credible exit within the term, and a borrower who passes identity and anti-money laundering checks with a credit history they can explain. Individuals, limited companies, SPVs and LLPs can all apply. Experience matters on heavier projects.
How much would a 200k bridging loan cost?
It depends on the monthly rate, the term and the fees. As an illustration, an arrangement fee of 1% to 2% on £200,000 is £2,000 to £4,000. Add monthly interest for each month held, valuation and legal fees, and any exit or broker fee. Our bridging cost calculator helps you model it.
What does Martin Lewis say about bridging loans?
We do not quote individual commentators. General consumer guidance treats bridging as a costly short-term option that should only be used with a clear plan to repay it. For commercial borrowers, that means meeting the lender's requirements fully, especially exit evidence, before committing.
Is there a cheaper alternative to a bridging loan?
Sometimes. If the property is let and you have time, a commercial mortgage is usually cheaper. Development finance suits heavy builds, and a delayed completion or vendor finance can help on private sales. Bridging tends to fit when speed, vacancy or works rule those out. Our alternatives guide compares them.
Do I need proof of income for a commercial bridging loan?
Not usually in the way a mortgage lender would want it, because a bridge is repaid from the exit rather than monthly income. But if interest is serviced monthly, lenders will want to see you can afford the payments, and refinance exits need rent or trading evidence.
Can I apply for a bridging loan with bad credit?
Often yes. Many commercial bridging lenders focus on the property and the exit, and will consider CCJs, defaults or past arrears if they are disclosed and explained. Recent or serious issues narrow the choice of lender and can affect pricing and LTV.