A fair question, and one I get often—“Bridging finance seems expensive, can I avoid it?”
Technically, yes—if you’re buying a property with cash. That’s the simplest way to sidestep a bridge loan, and for some investors, it’s a sensible approach. But if you’re financing the purchase, the conversation gets more nuanced.
Why Is Bridging Finance So Common?
Bridging loans are short-term finance solutions designed for properties that are unmortgageable in their current condition or where speed is essential. You might use one if:
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The property needs significant refurbishment
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You plan to flip the property
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Traditional lenders won’t approve a standard mortgage due to the condition
Yes, they come with higher rates and fees—but they’re built for speed, flexibility, and short-term use.
The Common Argument – “The Property’s Lettable, So Why Not a Standard Mortgage?”
I often hear:
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“It’s dated but still lettable, so why bother with a bridge?”
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“I can do the work in 2 weeks—surely the lender won’t know or care.”
It’s natural to think creatively, especially if you’re early in your property journey. I always encourage clients to ask these questions—it’s part of being informed and strategic.
But let’s be clear.
Can You Get Away With Using a Term Mortgage Instead of a Bridge?
Technically? Maybe.
Ethically and professionally? Absolutely not.
Any experienced broker should never recommend misleading a lender about your intentions. It’s not just poor practice—it’s a serious breach of lending terms, and the consequences can be significant.
The Risks of Skipping Bridging Finance Unethically
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Breach of mortgage terms – Lending under false pretenses can void your mortgage.
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Hunter Report – If you’re flagged here for misrepresentation, future borrowing becomes very difficult and expensive.
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Reputation Damage – Lenders and brokers won’t work with clients who cut corners.
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Forced Repayment – If discovered, you may be forced to repay the loan immediately.
As a broker, my responsibility is to protect your long-term interests. In cases where a client insists on hiding their true intent from a lender, I’ll walk away from the deal—and sometimes the client entirely.
What Should You Do Instead?
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Be transparent with your broker
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Let us evaluate whether a bridge loan or a standard mortgage is the most viable option
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Understand that the cost of bridging is often less than the long-term consequences of deception
Many lenders today offer creative bridging products and exit strategies. In some cases, we can even find hybrid solutions that reduce costs while still keeping you compliant.
Final Thought
Yes, bridging finance looks costly upfront, but it exists for a reason—and when used correctly, it’s a powerful tool in your investment strategy.
More importantly, honesty keeps the door open for future lending, portfolio growth, and stronger broker relationships. In property investment, cutting corners can cost you far more than any arrangement fee.
I could answer with the straight forward response of yes, by buying a property cash
this does of course negate the need for a bridging loan. Something I’ve always
considered being an option, should it be available to you and you are happy to
potentially tie up funds in a project.
However the real reason for this blog and the overwhelming reason I get asked this
is the difference in cost on a bridging loan versus a standard term Mortgage.
Ultimately why use a bridge when circumstances suggest, and with the clients view
on being ‘clever’ with what you tell a lender, a normal mortgage may be achievable.
Such comments as ‘The property is dated but lettable so why use a bridge when I
can refurbish on a standard term Mortgage?’ or ‘I’m doing work, but I can turn this
round in 2 weeks, surely a lender is not going to have an issue with that nor how will
they know?’
Perhaps trying to be a bit creative, and if you are looking at your first few
refurbishment projects, a reasonable question to ask. I would always prefer a client
asks these types of questions as it helps with my tailored recommendations to you
and helps ensure the right outcome. It’s what a good broker is there to do!
So, in keeping with being open and honest, the reality is that yes, whilst your plans
mean a bridging loan is the most suitable way forward, perhaps you may be able to
‘get away’ with proceeding on term Mortgage with the lenders unaware of your true
intents.
My first point here however is that any decent broker would absolutely not
recommend to proceed in this manner and (I would hope!) refuse to proceed. We are
here to look after you and make sure your property aspirations are met. Doing
anything not line with the terms laid out from a lender does potentially lead to much
more serious complications, especially when it is clear terms and conditions have
been so brazenly ignored.
From personal experience, in the more extreme case or perhaps it’s clear the client
is not being open with me, it’s been far easier to walk away from the business and
the client all together.
The point I always make is as a property investor you need both lenders and brokers
onside to help you achieve your goals. If you’re move is to do something untoward
this isn’t going to go down well and with things like the Hunter’s report, once your
name is on there, you will find borrowing will get very expensive, even perhaps not
be available.
As you can see then, should avoiding bridging finance be your plan and the only
realistic way doing so would be to be untoward, it certainly would be something I
would walk away from.
Perhaps a more serious tone to this blog but hopefully one that you’ll read and
understand that in order for a sustainable property portfolio to thrive, it goes without
saying, keeping lenders onside is always one of the highest priorities!
