Buy before you sell bridging loan
A buy-before-you-sell bridging loan funds your next home before your current one has sold, using equity in one or both properties. It covers a timing gap; it does not replace a long-term mortgage. Because you will live in the new home, it is usually a regulated loan with a maximum 12-month term, so the sale of your current home has to be realistic within that window.
Last reviewed: 20 October 2026 · By Pasecom Group Ltd editorial team
BridgingLoans.online is an independent UK introducer operated by PASECOM GROUP LTD (company 17139327, ICO ZC117546). We do not lend and we do not advise. Nothing on this page is a quote, an MCOB illustration or an offer of credit.
How does buying before selling work?
The bridge uses equity in your existing home, the new property or both so you can exchange or complete before your sale completes. The usual exit is the net proceeds of selling the current home; some borrowers repay part from the sale and keep a long-term mortgage on the new home for the rest. A valuation of your current home is not a guarantee of the sale price, and the sale is the main risk to plan for.
People use this route to secure a home they do not want to lose, to avoid renting between moves, to downsize on their own timetable, or because their own buyer is slow. If a chain has already collapsed, read chain-breaking finance as well.
What are the main structures?
| Structure | When it is used | What to check |
|---|---|---|
| Bridge for the deposit only | You have a mortgage offer for the new home but need the deposit from the old one | The mortgage lender’s view of the bridge; two charges |
| Bridge for the full purchase | You plan to repay mostly from the sale | Combined gross LTV; sale price and timing |
| Bridge secured on both homes | Equity sits mostly in the current home | Existing lender’s consent or repayment; legal costs on two titles |
Your solicitor should set out exactly what is due at exchange and at completion. Do not assume the bridge replaces a deposit pound for pound: existing mortgages, the purchase price, stamp duty and fees all sit in the same picture.
Is it regulated?
Usually. A loan secured on a home you or a close family member live in or will live in is generally a regulated mortgage contract, with affordability checks, regulated advice and normally a 12-month maximum term. Classification depends on the security, who occupies it, the borrower and the purpose, so it is not automatic — ask the broker which applies. BridgingLoans.online is an introducer, not an FCA-authorised broker and not a lender. We pass a complete pack to an FCA-regulated broker and do not recommend a product. See regulated bridging loans.
Worked example: moving before your sale
Suppose your current home is worth £450,000 with a £70,000 mortgage, the new home costs £500,000, and you need £420,000 for up to nine months while your home sells: £70,000 to repay the existing mortgage and £350,000 towards the new home, with the other £150,000 of the price coming from savings. The lender takes charges over both homes. Using this site’s teaching defaults:
| Line | Amount |
|---|---|
| Combined value of both homes | £950,000 |
| Net funds needed | £420,000 |
| Arrangement fee (2% of net, added to the loan) | £8,400 |
| Interest base (net + fee) | £428,400 |
| Monthly interest at 0.85% | £3,641.40 |
| Total interest (9 months, simple retained) | £32,772.60 |
| Gross facility | £461,172.60 |
| Net LTV | 44.2% |
| Gross LTV | 48.5% |
| Total cost of credit (fee + interest) | £41,172.60 |
Indicative educational example using this site’s calculator method: fee = net × 2%; interest = (net + fee) × 0.85% × months; gross = net + fee + interest. The 0.85% a month and 2% fee are teaching defaults, not our rates and not a quote. Valuation, legal and broker costs are not included.
When your home sells, the proceeds — after agent and legal fees — go towards the gross balance of £461,172.60. On a £450,000 sale that leaves around £11,172.60 still owed before costs, which a new long-term mortgage on the new home, or your own cash, would need to repay. If the sale price is lower than planned, the gap grows. The regulated broker’s illustration will show your real figures; try other terms in the calculator.
How will the lender judge my sale price?
The lender’s valuer will value your current home, and the lender may also consider how quickly it is likely to sell. Agents’ asking prices are often above the eventual sale price, so lenders tend to work from the valuation and may apply a margin for selling costs. If the plan only works at the top of the agent’s range, it is fragile. Running the numbers at a lower sale price before you commit shows how much room you really have.
If your sale has exchanged, the bridge may be closed, with a known completion date. If your home is not yet under offer, or is under offer but not exchanged, the bridge is open and still has a long-stop date. Lenders are more cautious with open regulated bridges because the 12-month limit is real. See open vs closed bridging loans.
What if my sale falls through?
Interest continues and an extension is not automatic. Fallback options might include re-marketing at a different price, refinancing, selling another asset or adding cash. Tell the lender early. If the sale price ends up lower than modelled, you may need extra funds to repay. Because both properties may be at risk, it is worth agreeing in advance — with your partner and adviser — the price at which you would accept an offer.
What should I prepare?
- An estate agent’s marketing appraisal and any offers received on your current home.
- Your current mortgage statement and any early repayment charge.
- Details of the new home and the agreed price and dates.
- Income and outgoings for the affordability assessment.
- Whether you plan to keep a mortgage on the new home after the sale.
Related: timescales and costs and fees.
Buying in Scotland? Missives replace exchange, and the 8% Additional Dwelling Supplement can be due on the new home until the old one sells, so the cash you need up front is higher. See bridging loans in Scotland.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
Indicative estimate only. Not a quote, illustration under MCOB, or offer of credit. BridgingLoans.online is a trading name of PASECOM GROUP LTD (company 17139327, ICO ZC117546), an introducer, not a lender. Email hello@bridgingloans.online.
Last reviewed: 20 October 2026.
FAQs
Can I buy a house before selling mine?
Possibly, if there is enough equity across the properties and a credible plan to repay. Owning a home alone is not enough; the lender tests the sale price and timing.
Can a bridging loan fund an exchange deposit?
Sometimes, depending on the lender, security and legal structure. Your solicitor must confirm what is due at exchange and completion.
Is buy-before-you-sell always regulated?
Not automatically. Classification depends on the security, who lives in it, the borrower and the purpose. Where you will live in the home, it usually is.
Can I keep my existing mortgage?
Sometimes. The bridging lender will assess all charges and may need consent for a second charge, or may repay the existing mortgage as part of the structure.
What happens if my home takes longer than 12 months to sell?
A regulated bridge is usually capped at 12 months. If the sale is late you may need an extension, a refinance or another repayment source, none of which is guaranteed.
Should I accept a lower offer to clear the bridge?
Only you can decide, ideally with your broker. Every extra month adds interest, so a slightly lower but secure sale can cost less overall than holding out. Compare the price difference with the extra interest and fees before you choose.
Next step
Use the calculator for an indicative starting point, then enquire if you want an introduction.