Comparison
Bridging Loan vs Remortgage — Which Is Right for You?
Remortgaging means replacing your existing mortgage with a new one — usually to release equity, secure a better rate, or change lender. It's the cheapest way to raise capital against a property where time isn't an issue. Bridging is short-term finance you take alongside your existing mortgage, used when speed or flexibility is more important than absolute cost.
The right choice usually comes down to two questions: (1) does your existing mortgage have early repayment charges if you switch? and (2) how fast do you need the money?
Head-to-head — Bridging vs Remortgage
| Bridging Loan | Remortgage | |
|---|---|---|
| Typical rate | 0.55–1.5% per month | 4–6% APR per year |
| Term | 1–24 months | 25–35 years |
| Speed | 2–12 weeks | 8–16 weeks |
| ERCs to existing lender | Avoids them — existing mortgage stays | Often 1–5% if breaking a fixed rate |
| Affordability | Light — exit-driven | Strict — full income assessment |
| Capital release ceiling | Up to 75% LTV combined | Up to 85–90% on residential remortgages |
| Cost over 12 months | Higher monthly cost; lower cost over loan life if exited at 12 months | Lower monthly cost; cheapest over a 5+ year hold |
| Right for | Time-critical capital raises, ERC avoidance | Long-term capital release, rate switching |
Pick a bridging loan when
- Your existing mortgage has steep ERCs that would cost more than 12 months of bridging interest
- You need the capital in 4–6 weeks, not 12+
- You'll repay or refinance within 24 months (e.g., from a property sale)
- Affordability has changed and you can't pass a remortgage stress test
- The capital is for a property transaction with a tight deadline
Pick a remortgage when
- Your existing fixed rate is ending or has ended (no ERCs)
- You're holding the property long-term and want the cheapest borrowing
- You can comfortably afford the new monthly payment under stress-test rules
- Speed isn't critical (you have 3+ months)
- You want to switch to a better long-term rate while raising capital
Worked example
You own a £600,000 home with a £300,000 mortgage at 2.4% with 18 months remaining on the fix and ERCs of 3%. You need £100,000 for an investment property purchase, completing in 6 weeks.
Remortgage option: switch to a new £400,000 mortgage. ERCs on existing mortgage: £9,000. New rate at, say, 5%. Won't complete in 6 weeks — you'd lose the investment property.
Bridging option: take a £100,000 second charge bridge alongside the existing mortgage. 12 months at 0.85%/mo retained = ~£10,200 interest + 2% fee (£2,000) = £12,200. Existing 2.4% mortgage stays in place, ERCs avoided. Investment property purchase completes on time.
When the existing mortgage's fix ends in 18 months, remortgage to consolidate both balances at the prevailing rate. Total cost of bridging route over 18 months: ~£12,200. Cost of remortgaging now plus losing the investment opportunity: ~£9,000 ERCs plus the lost deal — easily £30k+ in opportunity cost.
Common questions
Can I do a remortgage and a bridging loan at the same time?
Yes — bridging sits as a second charge behind your existing first-charge mortgage. You don't need to disturb the existing mortgage at all. This is exactly why bridging is useful when your existing mortgage has favourable terms (low rate, ERCs that would penalise switching) you want to preserve.
Is bridging cheaper than paying ERCs to remortgage early?
Often, yes. ERCs of 3-5% on a £300,000 mortgage = £9,000-£15,000 paid immediately to the existing lender. A 12-month bridge for the capital you need might cost £8,000-£12,000 in interest and fees. Add the loss of a low fixed rate you'd have to give up, and bridging usually wins on the maths.
How fast can a remortgage actually complete?
8–16 weeks end to end is normal. Specialist re-mortgage products with simpler underwriting can complete in 6 weeks. Anything faster than that is rare. If you need money in under 6 weeks, bridging is almost always the only option.
Bridging the right fit?
We'll match your scenario against seven specialist lenders. Rates from 0.55% per month, no broker fee.