26 June 2025 | Written by Mercantile Trust
Can I Borrow a Bridging Loan with a Limited Company?
Bridging loans have become a flexible short-term financing solution for investors and developers, especially when speed is crucial. But can a limited company access this kind of funding? The short answer is: Yes, absolutely. In fact, bridging loans through limited companies are increasingly common in the UK property market. Here's what you need to know.
What is a Bridging Loan?
A bridging loan is a short-term finance solution typically used to 'bridge the gap' between buying a new property and selling an existing one. They're popular for:
- Property purchases at auction
- Renovations or refurbishments
- Preventing a property chain from collapsing
- Fast purchases where traditional mortgages may take too long
Bridging loans can be arranged relatively quickly—often within days—making them ideal when time is of the essence.
Can a Limited Company Apply for a Bridging Loan?
Yes, limited companies (Ltd) can apply for bridging loans, and lenders often offer products specifically tailored for this type of borrower.
This setup is common among property investors and developers who operate through a company structure for tax efficiency, liability protection, or portfolio management.
Benefits of Using a Limited Company for a Bridging Loan:
- Tax Efficiency: Corporation tax is generally lower than income tax for higher-rate taxpayers, making this route more profitable for long-term investors.
- Asset Protection: A limited company structure separates personal and business finances, offering liability protection.
- Flexible Lending Criteria: Lenders often assess the company’s investment potential, assets, and director background rather than just personal income.
- Portfolio Growth: It can be easier to scale a property portfolio through a company than as an individual.
What Do Lenders Look For?
When lending to a limited company, providers typically consider:
- The experience of the company directors
- The exit strategy (e.g. refinance or sale of the property)
- The company’s financials or projected income
- The value and condition of the property used as security
Often, lenders require a personal guarantee from directors, especially if the company is newly formed or has limited trading history.
How to Apply with Us:
- Contact our expert team – As a direct lender, we provide tailored solutions based on your specific needs.
- We may request documents such as company accounts, director identification, and a clear exit strategy.
- Property valuation – We may also need to carry out a property valuation as part of the process.
Final Thoughts
Borrowing a bridging loan through a limited company is not only possible—it's a well-trodden path in UK property investment. With the right advice, structure, and exit strategy, a bridging loan with limited company can offer the speed and flexibility needed to seize property opportunities.
Need help exploring your options? Speak to our expert team, they can guide you through every step—from structuring your company to securing fast finance.
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Bridging loans are a short-term financing option, designed to "bridge" the gap between a financial need whilst long-term finance is being arranged.
