Mercantile Trust Logo Mercantile Trust Logo
  • Products
    • Bridging Loans
    • First Charge Bridging Loans
    • Second Charge Bridging Loans
    • Light Refurbishment Bridging Loans
    • Auction Bridging Finance
    • All Bridging Loans
    • Buy to Let Mortgages
    • First Charge Buy to Let Mortgages
    • Second Charge Buy to Let Mortgages
    • Holiday Let Mortgages
    • HMO Mortgages
    • MUFBs Mortgages
    • Student Buy to Let
    • All Buy to Let Mortgages
    • Business Loans
    • Home owner business loan
    • Buy to let business loan
    • All Business Loans

    Let's get started:

    New customers
    0800 032 3737
    Existing customers
    0800 980 6262
    Request a call back
    Make a payment
  • Existing Customers
    • Existing Customers Hub
    • Make a payment
    • Tariff of Fees
    • Product Guide

    Let's get started:

    New customers
    0800 032 3737
    Existing customers
    0800 980 6262
    Request a call back
    Make a payment
  • Intermediaries
    • Intermediaries Hub
    • Intermediary Portal
    • Intermediary Registration
    • Product criteria and Calculators

    Let's get started:

    Intermediary enquiries
    0800 032 5282
    Request a call back
    Make a payment
  • About us
    • About Us
    • About Us
    • Meet our team
    • Women in Finance Charter
    • Resources
    • Blog
    • Product Guide
    • Get in touch
    • Contact us

    Let's get started:

    New customers
    0800 032 3737
    Existing customers
    0800 980 6262
    Request a call back
    Make a payment
New clients
0800 032 3737
Existing clients
0800 980 6262
Request a call back
Make a payment
Contact us
Contact us

1 January 0001 | Bridging loans

Can I Borrow a Bridging Loan with a Limited Company?

Bridging loans
Man Working In His Office

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.

Share:


Keep Reading

Man Working In His Office
Bridging loans
26 June 2025
Can I Borrow a Bridging Loan with a Limited Company?

Need fast property finance? Limited companies can access bridging loans quickly—ideal for auctions, refurbishments, or time-sensitive deals.

Read More
Lady Looking At Her Laptop
Buy To Let
Bridging Loans
13 May 2025
How many applicants can you have on a Buy-to-Let or Bridging Loan in the UK?

When applying for a buy-to-let or bridging loan in the UK, the number of applicants allowed can impact how you structure your deal.

Read More
Young Woman And Man Working With Tablet
Buy To Let
First Charge Buy To Let
7 May 2025
First Charge Buy-to-Let Mortgages: A complete guide for property investors

This guide outlines the key concepts, eligibility criteria, lending process, and considerations associated with first charge BTL lending.

Read More
A Man On A Couch With Laptop (3)
Buy To Let
4 April 2025
From rental income to capital growth: Why Buy to Let is a winning strategy for landlords

Thinking about investing in property? Buy to Let remains one of the most reliable and rewarding strategies for landlords looking to grow their wealth.

Read More
Young Girl And Boy In A Small Cafe (1)
Homeowner Business Loans
Product Guides
26 March 2025
A complete guide to Homeowner Business Loans

Ready to unlock the power of your home equity? Read our guide to learn how!

Read More
Bunch Of Young People With Boxes
Product Guides
HMO Mortgages
17 March 2025
HMO Mortgages: The ultimate guide for landlords

Thinking about investing in an HMO property? This guide covers everything you need to know about HMO mortgages!

Read More
Orange House
Product Guides
Buy To Let
11 March 2025
Product Guide | Buy to Let Mortgages

First-time investor or seasoned landlord? Learn how buy-to-let mortgages work to make smart decisions and boost your rental income.

Read More
Light Home Renovation (1)
Product Guides
Second Charge
10 February 2025
Second Charge Loans explained: How they work & when to use one

This guide explores how second charge loans work, their benefits, risks, and who they’re best suited for.

Read More
Family Home
Product Guides
Holiday Let Mortgages
21 January 2025
Product Guide | Understanding Holiday Let Mortgages

This guide explains what holiday let mortgages are, how they work, and how you can make the most of them to maximise your investment potential.

Read More
Floor Plan
Product Guides
Bridging Loans
16 December 2024
How bridging offers flexibility

Bridging loans are a short-term financing option, designed to "bridge" the gap between a financial need whilst long-term finance is being arranged.

Read More
Two Contractor Disscusing A Plan
Product Guides
Bridging Loans
10 December 2024
Can you get a bridging loan if you are a contractor?

As a contractor, you may need a short-term finance solution to quickly access funds. Bridging loans can be a great way to achieve this

Read More
Pulteney Bridge
Product Guides
Bridging Loans
3 December 2024
Product guide | Common ways to use a bridging loan

What are the common ways to use a bridging loan? In this article, we explain everything you need to know.

Read More

Join our newsletter

For monthly updates, expert insights, and the latest trends in lending.

2650
5/5
Feefo Logo
Gold Trusted Service Award 2025 Full Colour Landscape Transparent
Read all our customer reviews

Products Bridging Loan Buy to Let Mortgages Business Loans
Existing Customers Make payment Tariff of Fees
Intermediaries Intermediary Portal Intermediary Registration Product criteria and Calculators
About us About Us Meet our team Resources
Contact us Existing Customers New Customers
NACFB Light BDLA Member WIF Charter Mark FINAL PNG
Legal and privacy policy Terms of use Cookie Policy Manage Cookies

© 2025 Mercantile Trust. All rights reserved.
Postal address: Mercantile Trust Limited, Building 2, Axis, Rhodes Way, Watford, Hertfordshire, WD24 4YW.
Registered Office: 25-27 Surrey Street, Norwich, Norfolk, NR1 3NX. Mercantile Trust is registered in England No: 07023863.

Our loan products are not regulated by the Financial Conduct Authority.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.