Typically offered with a 12-month term, bridging loans often come with no early repayment charges beyond the first three months of interest, depending on the lender. Interest payments are usually "rolled up," meaning they are added to the loan balance and repaid in full at the end of the term, which can help ease cash flow during the loan period. However, rolled-up interest contributes to the lender's maximum loan-to-value (LTV) limit, which generally falls between 70-75% of the property's value.

Lenders primarily focus on two key factors when assessing a bridging loan application: the value of the property being used as security and the proposed repayment strategy, known as the "exit plan." Whether the loan is repaid through property sale, a remortgage, or a combination of both, demonstrating a clear and viable repayment plan is essential. Bridging loans are versatile and can be used for a variety of purposes, from facilitating a time-sensitive property purchase to financing renovations on a property that doesn’t qualify for a standard mortgage.