The average UK bridging loan term is 12 months

The average UK bridging loan term is 12 months, but most are repaid within 6–8 months. Most specialist lenders charge no early repayment charges for settling ahead of schedule.

Bridging finance is a short-term, asset-backed loan designed to span the gap between a purchase and a long-term exit. While facilities can be arranged for up to 24 months, the industry standard term is 12 months. This provides a comfortable buffer for developers executing light to heavy refurbishments, allowing time for works, sign-offs, and subsequent conveyancing.

Crucially, because bridging interest rates are high (typically 10-15% per annum), borrowers are incentivized to exit the facility as rapidly as possible. Reputable bridging lenders do not enforce Early Repayment Charges (ERCs) or minimum interest periods beyond the first month. If a developer secures a 12-month facility with retained interest but completes and refinances the project in 6 months, the lender will rebate the unused 6 months of retained interest. This makes bridging highly cost-effective when deployed efficiently.