What Is a Commercial Bridging Loan?
A commercial bridging loan is short-term finance secured against commercial, semi-commercial, or mixed-use property.
It works the same way as a residential bridge, interest rolls up, the loan redeems in full at term end, but the security is a shop, office, warehouse, or hotel rather than a home.
Commercial bridges are almost always unregulated. They fall outside the FCA’s MCOB rules, which means the lender can move faster, offer higher LTVs on strong assets, and apply more flexible underwriting, but you lose the FCA protections that apply to regulated residential bridging.
We found most commercial bridges complete in two to three weeks on clean transactions, faster than a commercial term mortgage, which typically takes six to ten weeks. For auction purchases of commercial property, where you have 28 days to complete, that speed is the entire value proposition.
Commercial vs Residential Bridging Loans
The legal framework is different. Residential bridging on owner-occupied property is regulated under MCOB, you have FCA protection, access to the Financial Ombudsman, and the lender must treat you fairly.
Commercial bridging is unregulated. Enforcement is faster and the lender’s obligations to you are significantly reduced.
The underwriting criteria are different. Commercial lenders focus heavily on asset quality, location, condition, tenancy status, and secondary market appeal, rather than your personal income.
An empty shop in a declining high street is a harder lend than a fully let office in a major city, even at the same LTV.
Rates are typically 0.05% to 0.25%/month higher on commercial assets versus equivalent residential bridges. We found that the premium reflects both enforcement risk, commercial vacant possession is harder than residential, and the secondary liquidity risk on the asset itself.
What Can Commercial Bridging Finance Be Used For?
Auction purchases are the clearest use case. If you’re buying commercial property at auction, you have 28 days to complete. No mainstream commercial mortgage moves in 28 days. A commercial bridge funds the purchase; your term finance replaces it once you’ve had time to arrange it.
Permitted development conversions are another strong fit. If you’re converting an office or retail unit to residential under permitted development rights, the property is unmortgageable during construction.
A bridge funds the purchase and refurbishment. Your exit is refinancing onto a buy-to-let or development exit mortgage once the units meet residential criteria.
We also see commercial bridges used for vacant possession gaps, when a sitting tenant exits and you want to refurbish before selling or refinancing at a higher value. And for commercial remortgages where existing term finance is due to expire faster than a new term deal can be arranged.
Commercial Bridging Loan Rates and Fees in 2026
Rates start from 0.57%/month at United Trust Bank and 0.60%/month at LendInvest for strong commercial assets at moderate LTVs. Glenhawk starts from 0.61%/month and accepts mixed-use and semi-commercial. Funding 365 starts from 0.64%/month flat rate with no exit fees.
Commercial LTV maximums are typically 65–70% of open market value on straightforward assets. Semi-commercial (part-residential, part-commercial) may attract lower LTV caps. Vacant, dilapidated, or secondary location assets will be assessed at lower LTVs with higher rates.
The all-in cost on a commercial bridge is meaningful. A £500,000 bridge at 0.70%/month for nine months costs £31,500 in interest. Add 1.5% arrangement (£7,500), legal fees (£3,000–£5,000), and valuation (£1,500–£3,000).
Total cost: £43,000–£47,000 before exit fee, around 8.6%–9.4% of the loan. That is significant, but frequently justified by the transaction it enables.
How to Compare Commercial Bridging Lenders
When comparing commercial bridging lenders, filter on five criteria: maximum LTV on your specific asset type, accepted asset classes (some lenders exclude hotels, pubs, or petrol stations), minimum loan size, speed, and exit fee structure.
Glenhawk and MT Finance both explicitly accept a wider range of commercial and semi-commercial assets than institutional lenders.
If your asset is unusual, a petrol station, a working pub, a former bank branch, you need a lender with manual underwriting, not one relying on automated valuation tools.
We recommend using a specialist broker for commercial bridging. Commercial lenders vary significantly in appetite, and the difference between a 0.65%/month and a 0.90%/month quote on the same asset often comes down to which underwriter you reach and how the deal is packaged.
Commercial Bridging Loan FAQs
Can I get a commercial bridging loan on a vacant property?
Yes, most commercial bridging lenders will consider vacant property, but the LTV will be lower and the rate higher than on a tenanted asset. We found that lenders typically cap vacant commercial at 55–65% LTV versus 65–70% on tenanted. The exit strategy is scrutinised more closely: if your plan is to find a tenant before refinancing, you’ll need to demonstrate a credible letting timeline and the property’s appeal to prospective occupiers.
Is a commercial bridging loan regulated by the FCA?
No, in almost all cases. Commercial bridging loans are unregulated, they fall outside the FCA mortgage rules that apply to residential bridging on owner-occupied property. This means you have no right to complain to the Financial Ombudsman and no FSCS protection if the lender fails. It also means the lender can move faster and offer more flexible terms. Always take independent legal advice before signing.
What property types can be used as security for a commercial bridge?
Most commercial bridging lenders accept office, retail, warehouse, industrial, and mixed-use property. Semi-commercial (e.g., a shop with a flat above) is widely accepted. Hotels, pubs, petrol stations, and care homes require specialist lenders with manual underwriting, not all lenders will touch them. Vacant land without planning consent is generally not accepted as the sole security.
How quickly can a commercial bridging loan complete?
A clean, straightforward commercial transaction with a simple security and a documented exit typically completes in two to three weeks. Complex transactions, those with multiple securities, unusual property types, or complex ownership structures, take longer. Commercial valuations by RICS-qualified surveyors take three to seven days and are the most common bottleneck alongside solicitor work.
How we reviewed this
What we covered. This guide explains how this product type works for UK businesses, drawing on FCA guidance, Bank of England publications, and lender documentation. We do not draw on comparison site summaries or aggregator data.
Data sources. All claims were checked against primary sources in May 2026, including provider websites, FCA guidance, and Bank of England publications. We do not cite comparison site summaries or affiliate aggregator data.
Update cadence. We re-verify this page at least monthly, and whenever a provider changes pricing, eligibility, or terms. The verification date on the page reflects the most recent full review. Some links on this page are affiliate links, see our editorial policy.
Regulatory note. This page is editorial content, not regulated financial advice. Credit products are subject to status and approval. Compare offers directly with providers before you apply.