Bridging Loan Explained

A bridging loan is short-term borrowing that covers a gap — most often between buying a new home and selling your existing one.

It's worth being clear that this isn't a forces benefit. Bridging loans come from commercial lenders, so they carry interest and fees like any other borrowing, and the rates are usually higher because the term is short.

They're normally secured against property, and they're built to be repaid quickly. That makes the exit plan the important part: you need to know how and when you're clearing it before you take one on.

If you're buying on leaving service, look at Forces Help to Buy first. It's interest-free and it's yours by entitlement rather than by application to a lender.

Who is eligible?

That's the lender's call, not the MoD's. Most want a clear exit plan — usually a property sale or a mortgage offer already agreed — plus your income, credit history and the value of whatever secures the loan.

A military pension counts as stable income, which helps. So does equity in your current home or a decent deposit on the new one.

Before going down this route, check what the MoD already offers. Forces Help to Buy is an interest-free advance of up to £25,000 towards a property while you're still serving, and it replaced the older Long Service Advance of Pay. If you have an outstanding LSAP balance, that caps what you can take under FHTB.

An entitlement you already have beats a commercial loan you have to qualify for, so it's worth exhausting that first.

What benefits does this provide?

  • Financial Support: Provides immediate funds to cover living expenses, education, or business start-up costs during the transition from military to civilian life.
  • Flexibility: Terms are set case by case, so the amount and length can be matched to the gap you are actually covering.
  • Low-Interest Rates: Often features competitive interest rates compared to traditional loans, making it a cost-effective option for veterans.
  • Quick Approval Process: Streamlined application and approval process ensures timely access to funds when needed most.
  • No Collateral Required: Typically does not require collateral, reducing the risk for veterans who may not have significant assets.
  • Credit Score Consideration: Takes into account the unique financial situations of veterans, offering options even for those with less-than-perfect credit scores.
  • Support Services: May include access to financial counselling and support services to help veterans manage their finances and plan for the future.

How do I apply?

  • Research Lenders: Identify financial institutions or lenders that offer bridging loans specifically for military service leavers.
  • Check Eligibility: Ensure you meet the lender's criteria, which may include proof of military service, credit score, and income verification.
  • Gather Documentation: Prepare necessary documents such as identification, proof of service, financial statements, and details of the property involved.
  • Complete Application: Fill out the lender's application form, providing accurate and complete information.
  • Submit Application: Send your completed application along with all required documents to the lender.
  • Await Approval: The lender will review your application and may request additional information or documentation.
  • Review Terms: If approved, carefully review the loan terms, including interest rates, fees, and repayment schedule.
  • Sign Agreement: Once satisfied with the terms, sign the loan agreement to finalise the process.
  • Receive Funds: Upon signing, the lender will disburse the loan funds as agreed.

Common questions

What is a bridging loan?

A short-term loan that covers the gap before longer-term money arrives, most often between buying a new home and selling an existing one.

Do the armed forces offer a bridging loan?

No. A bridging loan is a commercial product from a lender rather than an MoD entitlement, so it carries interest and fees like any other borrowing.

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Last reviewed 26 August 2026 by Brittany Belt, Co-founder and COO