Effective legal intelligence
Real Estate
Monday 15th May 2023 Ginevra Beltrame 

Bridging loans increase as Bank of England base rate continues to rise

Bridge lending has increased by almost 50% since the Bank of England began raising the base rate at the end of 2021.

The latest change on 23 March 2023 brought the base rate up to 4.25%. The next date set to determine the base rate is on 11 May 2023.

As a result of the increases, borrowing money has become more expensive and more difficult to secure. Securing a traditional mortgage in the current climate seems particularly daunting and a bridge loan could be a great alternative.

Bridging finance is a type of short-term funding that helps individuals or businesses to bridge the gap in order to:-

a) Buy a property;

b) Raise capital;

c) Fund development works;

d) Refinance.

One of the main advantages of bridging finance is the speed at which funds can be obtained. JPC has worked on transactions where funds were released in 1 day and we are very experienced with all forms of bridging finance.

Another advantage of bridging finance is the flexibility it provides. Unlike traditional forms of lending, bridging finance can be tailored to the specific needs of the borrower such as better repayment terms and the ability to borrow larger sums of money.

Typically, bridging finance is secured against property or other assets and/or via personal guarantees. This can be a complex legal process. JPC can assist various parties involved to ensure everything is properly documented and that the loan is a success. JPC regularly assists and advises both lenders and borrowers in bridging loan transactions.


If you are either:

a) A borrower thinking of obtaining a bridge loan in the UK property market; or

b) A lender looking to grow and expand your funding lines;

please get in touch with us to discuss.

At JPC we have a team of highly experienced property lawyers who specialise in raising finance on residential and commercial property transactions in the UK. We can guide you through these options and help you choose what is best for you.

Whether you are looking to start a bridging loan transaction, or need a second opinion please contact Ginevra Beltrame by email gbeltrame@jpclaw.co.uk or telephone:020 7581 7591or on connect with her on LinkedIn.


All articles on this website do not necessarily cover every aspect of a topic and are designed for information purposes. Reliance should not be placed on their contents without specific legal and financial advice first being taken.

Back to latest news