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Camden Development Finance
Fast Property Finance

Bridging Finance in Camden

Fast bridging loans for Camden property purchases, chain breaks, and refurbishments. Complete in 5-10 working days with rates from 0.55% per month. Access short-term funding when speed is critical.

5-10
Days to Complete
75%
Max LTV
0.55%
Rates From (pm)
100+
Lenders

What Is Bridging Finance?

Bridging finance is a short-term property loan designed to "bridge the gap" between a property purchase and longer-term funding or sale. Unlike conventional mortgages that can take 8-12 weeks to arrange, bridging loans can complete in as little as 5-10 working days, making them the solution of choice when speed is essential. The loan is secured against property — either the property being purchased or another property you already own — and is repaid when the bridge is no longer needed, typically through sale, refinance, or the completion of another financial transaction.

In Camden's fast-moving property market, bridging finance has become an indispensable tool for investors and developers. The borough's diverse property landscape — from auction lots requiring immediate completion to premium Hampstead properties where chains can be complex and fragile — creates numerous situations where conventional finance simply cannot move quickly enough. Whether you are purchasing a property at auction with a 28-day completion deadline, breaking a chain to secure your next investment, or funding a light refurbishment before selling or refinancing, bridging finance provides the speed and flexibility that Camden's competitive market demands.

Our panel of over 100 bridging lenders includes high street banks, specialist bridging companies, and private lending funds. This breadth of panel means we can match your specific requirement to the lender best positioned to deliver — whether that is the most competitive rate, the fastest completion, or the most flexible approach to property type and borrower profile. Every Camden bridging loan we arrange comes with a transparent fee breakdown and a clear understanding of the total cost before you commit.

When to Use Bridging Finance in Camden

Bridging finance serves a wide range of property scenarios. Here are the most common situations where Camden property buyers and investors turn to bridging loans.

Auction Purchases

Buying at auction typically requires a 10% deposit on the day and completion within 28 days — a timeline impossible for conventional mortgages. Bridging finance provides the speed to meet auction deadlines with confidence. Camden auction properties often include former council flats, properties requiring modernisation, and commercial buildings with conversion potential, all of which can represent excellent value for prepared buyers.

We recommend contacting us before the auction so we can provide a Decision in Principle. This gives you the confidence to bid knowing that funding is in place, and it also allows the legal and valuation processes to begin promptly after your successful bid, ensuring a smooth and timely completion.

Chain Breaks

Property chains in Camden are notoriously fragile. When a chain break threatens to collapse your purchase, a bridging loan allows you to complete the acquisition independently of the chain. You effectively become a cash buyer, which not only saves the transaction but often strengthens your negotiating position.

This is particularly relevant in areas like Hampstead and Belsize Park, where property values mean that a delayed or failed purchase can result in the loss of a substantial deposit and months of wasted time. Bridging finance breaks your dependence on the chain and allows you to proceed with certainty, refinancing onto a conventional mortgage once your existing property sells.

Refurbishment

Purchasing a property that needs refurbishment before it can be let or sold is a well-established investment strategy in Camden. Many properties across the borough — particularly Victorian and Edwardian terraces in Kentish Town, Gospel Oak, and Chalk Farm — offer the potential for significant value uplift through targeted cosmetic refurbishment.

Bridging finance funds the purchase, and some lenders will also release additional funds for the refurbishment works. Once the works are complete and the property has been revalued at the higher figure, you refinance onto a buy-to-let mortgage based on the improved value. This strategy can allow you to recycle most or all of your original deposit for the next project, building a Camden property portfolio efficiently.

Planning Gain

Securing a property with development potential and obtaining planning permission can significantly increase its value — a strategy known as planning gain. Bridging finance allows you to acquire the property quickly and hold it while the planning application is determined by Camden Council.

Once planning is granted, the property can be sold at an uplifted value reflecting the development consent, or the bridging loan can be refinanced onto development finance to carry out the approved works. This approach is particularly effective for properties in Camden's commercial areas like Holborn and Bloomsbury, where office-to-residential conversion potential can substantially enhance value.

Speed Matters

Why Speed Is Critical in Camden's Property Market

Camden is one of London's most competitive property markets. Desirable properties — whether residential investments in Kentish Town, commercial opportunities in Holborn, or family homes in Hampstead — attract multiple interested parties and can move to under offer within days of listing. In this environment, the ability to demonstrate that you can complete quickly gives you a material advantage over other buyers who are dependent on conventional mortgage timescales.

Bridging finance transforms you into the equivalent of a cash buyer. Vendors and their agents know that a buyer with bridging finance in place can complete in days rather than months. This can be the difference between securing a property and losing it to a competing offer, and it often provides leverage for price negotiation. In a market where the difference between asking price and achieved price can be significant, the cost of a bridging loan is frequently offset by the negotiating advantage it provides.

Indicative terms within hours of enquiry
Formal offer within 24-48 hours
Legal and valuation instructed immediately
Completion in 5-10 working days
Emergency completions possible in 3-5 days

Bridging Loan Timeline

1
Day 1

Initial Enquiry

Submit your requirements. We identify the best-matched lender and provide indicative terms.

2
Day 2

Formal Application

Application submitted, valuation instructed, legal work begins in parallel.

3
Day 3-5

Valuation & Legal

RICS valuation completed. Solicitors process title and carry out searches.

4
Day 5-7

Formal Offer

Credit-approved formal offer issued. Conditions satisfied.

5
Day 7-10

Completion

Funds released to your solicitor. Purchase completes.

Bridging Finance Key Terms

The headline parameters for bridging loans on Camden properties. Actual terms depend on the property, LTV, and exit strategy.

Loan-to-Value

Up to 75%

Of the property's current market value as assessed by a RICS valuer

Interest Rates

From 0.55% pm

Monthly interest with options for retained, rolled-up, or serviced interest

Loan Terms

1-18 months

Short-term by design, with extensions available if the exit takes longer

Completion Speed

5-10 days

Working days from application to funds released, faster for urgent cases

Regulated vs Unregulated Bridging Finance

The distinction between regulated and unregulated bridging is important and affects both the speed of completion and the consumer protections available to you.

Regulated Bridging

FCA Regulated

Regulated bridging finance applies when the security property is, or will be, your principal residence or the residence of an immediate family member. These loans fall under FCA regulation, which provides additional consumer protections including a mandatory reflection period and standardised disclosure requirements.

When It Applies:

  • Buying a new home before selling your current one
  • Preventing repossession of your own home
  • Funding home improvements to your residence
  • Purchasing a property a family member will live in

The 14-day reflection period required by FCA regulation means regulated bridging loans typically take slightly longer to complete than unregulated loans.

Unregulated Bridging

Investment & Commercial

Unregulated bridging finance covers all non-residential lending: investment property purchases, buy-to-let acquisitions, commercial property, development sites, and any other property where neither you nor a family member will reside. This is the most common form of bridging in Camden's investor and developer market.

When It Applies:

  • Purchasing a buy-to-let investment property
  • Acquiring commercial or mixed-use property
  • Buying at auction for investment purposes
  • Funding refurbishment of a non-residential property

Without the regulatory reflection period, unregulated bridging can complete faster — in as few as 5 working days for straightforward cases.

The Importance of Your Exit Strategy

Your exit strategy is the single most important factor in bridging loan approval. It is how you will repay the loan, and every lender will scrutinise it carefully. A credible exit strategy is essential.

Property Sale

Selling the bridged property or another property you own on the open market. Camden's strong buyer demand and low average marketing times make this a highly credible exit. Properties in desirable areas like Belsize Park and Chalk Farm regularly sell within weeks of listing.

Mortgage Refinance

Refinancing the bridging loan onto a conventional residential or buy-to-let mortgage. This is the standard exit for chain break scenarios and refurbishment projects. Once the property is mortgageable (no outstanding works, habitable condition), the bridging loan is repaid from the mortgage advance.

Development Finance

If you have acquired a property with development potential, the bridge can be refinanced onto a development finance facility to fund the construction or refurbishment works. This creates a seamless funding journey from acquisition through to project completion.

Capital Receipt

Repaying the bridge from the proceeds of another financial event — such as the sale of a business, receipt of inheritance, maturity of an investment, or settlement of a legal claim. The key is demonstrating that the funds will be available within the bridging loan term.

A Word on Exit Strategy Realism

The most common reason for bridging loan applications being declined is an unconvincing exit strategy. Lenders need to see that your plan for repaying the loan is realistic and achievable within the agreed term. We work with you to stress-test your exit strategy before submitting your application, considering factors such as current Camden market conditions, realistic marketing periods, comparable evidence for projected sale or rental values, and any contingencies that could affect the timeline. This preparation significantly increases the likelihood of approval and often results in better terms.

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Bridging Finance FAQ

Detailed answers to common questions about bridging finance for Camden property transactions.

We can complete bridging finance in as little as 5-10 working days from initial enquiry to funds being released. In urgent situations — such as auction purchases where you typically have 28 days to complete — we have access to lenders who can work to even tighter timescales. The key to fast completion is having your documentation ready: proof of identity, proof of funds for the deposit, details of the property, and a clear exit strategy. We prepare your application to minimise delays and keep the process moving at pace.
Bridging loans for Camden properties are available up to 75% of the property's current market value (LTV). The maximum loan amount can range from £50,000 to £25 million or more, depending on the lender and the property. For higher value properties in areas like Hampstead or Belsize Park, where individual property values can exceed several million pounds, specialist lenders are available who focus specifically on prime London property. Second charge bridging loans are also available if there is an existing mortgage in place.
Bridging loan rates for Camden properties currently start from 0.55% per month (approximately 6.6% per annum). Rates vary based on the loan-to-value ratio, the property type, the loan amount, and the strength of your exit strategy. Lower LTV loans (under 60%) typically attract the best rates. Arrangement fees are usually 1-2% of the loan amount. Interest can be serviced monthly, retained (deducted from the loan at the outset), or rolled up (added to the loan and paid on redemption). We compare terms across 100+ lenders to find the most competitive rate for your specific requirement.
Regulated bridging finance is governed by the Financial Conduct Authority (FCA) and applies when the property being used as security is, or will be, occupied by you or an immediate family member as a residence. Unregulated bridging finance applies to investment properties, buy-to-let properties, commercial properties, and development sites — essentially any property that is not your home. Regulated bridging loans offer additional consumer protections, including a 14-day reflection period, but this can slow completion. The majority of bridging loans for Camden property investors and developers are unregulated, allowing for faster execution.
A clear, credible exit strategy is the most important factor in bridging loan approval. Common exit strategies include: sale of the property on the open market (particularly strong in Camden given buyer demand), refinancing onto a conventional mortgage or buy-to-let mortgage, sale of another property you own, refinancing onto development finance (if you plan to carry out substantial works), or receipt of funds from another source such as an inheritance or business sale. The exit strategy must be realistic and achievable within the bridging loan term. Lenders will scrutinise the exit carefully, so we help you present a compelling case.
Yes, auction purchases are one of the most common uses for bridging finance. When you buy at auction, you typically need to pay a 10% deposit on the day and complete the purchase within 28 days — a timescale that is impossible for conventional mortgages. Bridging finance can be arranged within 5-10 working days, giving you ample time to complete. We recommend speaking to us before the auction so we can provide a Decision in Principle (DIP), giving you confidence to bid knowing that finance is in place. Camden auction properties — particularly those requiring refurbishment — can offer excellent value for informed buyers.
Yes, bridging finance is well-suited to light-to-medium refurbishment projects where the works do not require planning permission or involve structural alterations. This includes cosmetic upgrades, kitchen and bathroom replacements, redecoration, garden landscaping, and similar improvements. Some bridging lenders will release additional funds during the refurbishment against evidence of completed works. For heavier refurbishment involving structural changes, extensions, or conversions, development finance is generally more appropriate as it provides staged drawdowns with monitoring surveyor oversight.
Bridging lenders will consider most property types found in Camden, including residential houses and flats, period properties, ex-local authority properties, commercial premises, mixed-use buildings, land with planning permission, and properties in need of refurbishment. Properties in conservation areas (which cover much of Camden) are acceptable, though listed buildings may require specialist lenders. Unmortgageable properties — those with structural issues, short leases, or other defects — can also be funded by bridging lenders who assess the property's underlying value and the borrower's plans to resolve the issues.
Unlike conventional mortgages, bridging loans are primarily assessed on the property value and the exit strategy rather than your personal income. This makes bridging finance accessible to self-employed individuals, company directors, investors, and those with complex income structures. However, lenders will want to understand your overall financial position, including your net worth, any other properties or assets you own, and your experience with property investment. Some regulated bridging loans may require evidence of affordability if interest is being serviced monthly.
Typical bridging loan fees include: arrangement fee of 1-2% of the loan amount (some lenders charge as low as 0.5% for straightforward cases), valuation fee of £500-£3,000 depending on property value, legal fees for both your solicitor and the lender's solicitor (typically £1,500-£5,000 in total), and broker fee. Exit fees vary by lender — many charge no exit fee at all, while others charge 1% of the loan amount. We provide a complete, transparent fee breakdown before you proceed so there are no surprises. In many cases, fees can be added to the loan rather than paid upfront.

Related Finance Solutions

Depending on your project, these complementary finance products may also be relevant.

Development Finance

From 0.65% pm

For projects involving significant construction or refurbishment works. Staged drawdowns with monitoring surveyor oversight. Up to 70% LTC.

Learn More

Mezzanine Finance

Up to 90% LTC

Top up your senior loan to reduce your equity requirement. Combined LTC up to 90%. Works alongside bridging or development finance.

Learn More

Development Equity

Up to 100% funding

Access equity partners for your project. Up to 100% of project costs funded through joint venture and profit share arrangements.

Learn More

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