In the same way that you’re able to get a bridging loan to buy property, it’s also possible to take out this type of short-term bridging loan to purchase land. Land bridging loans prove exceptionally valuable for developers seeking immediate funds to secure investments, such as the purchase of land at auctions. These bridge loans can effectively facilitate the acquisition of land, whether it’s intended for commercial or residential purposes. In many cases, we see developers using bridging finance to purchase land and then apply for planning permission to build residential or commercial properties.

This type of loan offers quick access to funds, often within a matter of days. However, in exchange for this speed, clients typically incur a higher interest rate compared to other, more conventional financing options. Most lenders will require a substantial upfront deposit, and in some cases, they may request additional collateral, such as a residential property, to secure the loan. As these loans are structured as interest-only, lenders will also seek evidence of your exit strategy. In simpler terms, they want to know your plan for repaying the loan, which usually involves either selling the land or obtaining longer-term financing once your project reaches completion.