From Victorian terraces in Hastings Old Town to flats along the St Leonards seafront, the area is attracting buyers, developers and investors. But when it comes to funding property purchases or improvements, the choice between a bridging loan and a remortgage can be confusing. This guide explains the differences, when each option makes sense, and how local property factors affect lender appetite in Hastings.
What Is a Bridging Loan?
A bridging loan is short-term finance, usually 3–18 months, designed to “bridge” a gap. It’s often used when speed is critical or a property doesn’t meet standard mortgage criteria. Bridging loans are interest-only and repaid through sale or refinance.
When Bridging Works Well
- Auction purchases: With 28-day completions, bridging offers the speed you need
- Unmortgageable property: Homes needing major repairs (roof, kitchen, bathroom, EPC upgrades)
- Chain breaks: Securing a new home before selling your current one
- Development projects: Refurbs, conversions or extensions
What Is a Remortgage?
A remortgage is switching your current mortgage to a new product, either with your existing lender or a new one. Unlike bridging, it’s longer-term and generally cheaper. It suits homeowners with mortgageable properties who want stability or to release equity.
When Remortgaging Fits Best
- Fixed rate ending: Avoiding higher Standard Variable Rates (SVRs)
- Capital raising: Funding home improvements or consolidating debts
- Better deal: Securing lower rates if your loan-to-value (LTV) has improved
- Predictability: Locking in stable monthly payments
Key Differences Between Bridging and Remortgaging
| Feature | Bridging Loan | Remortgage |
|---|---|---|
| Purpose | Short-term, quick access to funds | Long-term, stability and affordability |
| Timescale | Days/weeks to arrange; 3–18 month terms | 4–12 weeks to arrange; 2–5+ year terms |
| Repayment | Repaid via sale or refinance | Monthly mortgage payments |
| Rates | Higher (quoted monthly, e.g. 0.6–1.2%) | Lower (quoted annually, e.g. 4–6%) |
| Property condition | Can fund unmortgageable homes | Requires mortgageable condition |
Hastings Property Considerations
Local stock often influences which option is realistic:
- Seafront flats: Check cladding, service charges and lease terms — issues may make them “unmortgageable” until fixed
- Victorian terraces: Many require EPC upgrades, damp work or roof repairs before lenders accept them
- Regeneration zones in St Leonards: Attractive for capital growth, but lender appetite varies
Worked Example: Auction Flat in St Leonards
Price: £120,000 at auction. Needs £25,000 in works (kitchen, bathroom, damp proofing). A bridging loan covers purchase and works. After refurb, a remortgage at £180,000 valuation repays the bridge and leaves long-term finance in place.
Worked Example: Family House in Hastings
Current mortgage: £180,000. Value: £300,000. Homeowner wants to raise £40,000 for an extension. A remortgage to 75% LTV (£225,000) releases funds at residential rates, cheaper than bridging.
Costs to Compare
- Bridging: Arrangement fee (1–2%), monthly interest, exit fee, valuation, legal costs
- Remortgage: Arrangement fee (flat or %), valuation, legal costs (sometimes free with incentives)
Always calculate the total cost over your expected timescale.
Bridging vs. Remortgage FAQs
Can I get a bridging loan as a first-time buyer?
Yes, though lenders are stricter on experience and exit plans.
How fast can bridging complete?
Sometimes in under 2 weeks — ideal for auctions and chain breaks.
Can I remortgage before my deal ends?
Yes, but early repayment charges (ERCs) may apply. Compare the cost of waiting versus switching early.
Which is cheaper?
Remortgages are almost always cheaper. Bridging suits short-term, time-critical cases.
Can I use bridging for development?
Yes — many lenders offer specific Bridging & Development products designed for heavy refurbishments.
Next Steps
If you’re buying in Hastings or St Leonards, the right funding choice depends on your property and goals. Explore our Bridging & Development Loans and Remortgages pages for more detail. Or request a callback and we’ll connect you with an FCA-regulated adviser to structure the most suitable route.