What are land bridging loans?

Land bridging loans, also known as land acquisition loans, are a type of short-term financing used to purchase land with the intent of developing or reselling the property. This type of loan is often used by property developers, property investors, and individuals looking to build their own home on a piece of land.

The terms of a land bridging loan can vary depending on the lender, but typically range from 3 months to 18 months. The loan is secured against the land being purchased, and the lender will typically require a first or second charge on the property as collateral.

What are the benefits of land bridging loans?

One of the main benefits of land bridging loans is the speed at which they can be obtained. Like commercial bridging loans, land bridging loans can be secured within a matter of days, providing borrowers with quick access to capital. This can be particularly helpful for property developers or investors who need to act quickly to secure a piece of land before it is sold to someone else.

Another benefit of land bridging loans is the flexibility they offer. Traditional lenders may be hesitant to provide financing for land purchases, as they are considered to be a higher risk investment due to their lack of income-generating potential. However, land bridging lenders may be more willing to provide financing based on the value of the land and the potential for development or resale. This can be particularly helpful for property developers or investors who may not have a strong credit history or who may be looking to purchase land that is not eligible for traditional financing.

What are the drawbacks of land bridging loans?

It is important to note that land bridging loans often come with higher interest rates and fees than traditional loans. This is due to the increased risk that lenders take on by providing short-term financing with less stringent credit requirements. As such, borrowers should carefully consider the costs and risks associated with a bridging loan before deciding to pursue this type of financing.

Another factor to consider when applying for a land bridging loan is the potential timeline for development or resale of the property. Bridging loans are intended to be short-term financing options, so borrowers should have a clear plan in place for how they will repay the loan within the agreed upon timeframe. This may include securing traditional financing once the land has been developed or resold, or arranging for a sale or refinancing of another property.

How are land bridging loans useful?

Overall, land bridging loans can be a valuable financing option for property developers, property investors, and individuals looking to build their own home on a piece of land. However, it is important to carefully consider the costs and risks associated with this type of financing before making a decision. Working with a reputable lender who is experienced in providing bridging loans for land purchases can help ensure that borrowers are able to secure the financing they need while minimizing their risk.

Are you looking for a land bridging loan? Our sister partner could help. Call our freephone number above to find out more.

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Our flexible approach


We are proud to be a lender who can deliver loans at a fast approach, to consumers. We make this possible by carrying out our own legal checks, in house for loans under 100k, within hours. We can offer automated valuations, which are available to produce financial solutions in an instant.

Mercantile Trust regularly help their customers carry out renovations with heavy refurbishment loans, by providing finance fast.

No minimum income

At Mercantile Trust, we put our customers at the forefront of what we do.

We offer top slicing, where we can use your personal income when carrying out affordability calculations. If your rental income does not cover your mortgage repayments, we will top up the remaining amount that you cannot cover so you are able to get the loan you require.

No Exit Fees

We want you to be in control of your finance.
With no early repayment or exit fees, Mercantile Trust will strive to find a loan to meet your financial requirements.

Our bridging loan criteria

We aim to help absolutely everyone, however there are certain criteria that must be met in order to make a successful application:

  • Unregulated bridging applications only
  • Rates from 0.99%
  • Up to 75% loan to value
  • Most property constructions accepted
  • No personal income requirement
  • No exit fees
  • Minimum property value £75k
  • Minimum advance £25k max £500k
  • Confirmation of exit required
  • Minimum of one buy to let or residential property required
  • Serviced and rolled interest available
  • No ERC (Early Repayment Charge)
  • First and second charge available