Bridging finance remains one of the most flexible tools for property investors and developers in 2025. Whether used to secure auction purchases, fund refurbishments, or unlock equity between sales, the ability to move fast and borrow without the red tape of traditional banks has made it a preferred route for many.
However, one major question still divides borrowers: should you apply for a bridging loan as a limited company or in your personal name?
Both options have advantages, but your choice can significantly impact tax efficiency, risk exposure, and long-term financial planning. Here we break down the key differences to help you decide which approach makes sense for your goals.
Understanding how bridging loans work
A bridging loan is a short-term funding option designed to “bridge” a financial gap, often between buying one property and selling another. These loans are also widely used for refurbishment, development, or auction purchases where time is critical.
At Goldhill Finance, borrowers can access flexible bridging solutions ranging from £10,000 to £500,000, with terms from 1 month to 2 years. Funding is available against 1st, 2nd, and 3rd charges, meaning you can secure finance even when an existing mortgage is in place.
Goldhill offers a fast process with no upfront fees, no exit fees, and no proof of income required. With lending decisions within 4 hours and funds released to solicitors within days, investors can act quickly when opportunities arise.
Limited company bridging loans explained
A limited company bridging loan is taken out in the name of a registered business, usually a Special Purpose Vehicle (SPV) set up specifically for property investment.
Key benefits of limited company bridging:
- Tax efficiency
When property is owned within a company, profits are subject to corporation tax, which currently stands lower than higher-rate personal income tax. This can make reinvestment and long-term portfolio growth more tax efficient. - Ring-fenced liability
Operating through a company can separate your personal finances from your property investments. Often, the company becomes legally responsible for the loan, offering a layer of protection for personal assets. - Easier portfolio scaling
Many professional investors prefer to buy through a company structure because it simplifies accounting, makes it easier to manage multiple properties, and can attract lender confidence when expanding a portfolio. - Interest relief
Limited companies can typically offset the full amount of mortgage interest as a business expense. Restricted relief for individual borrowers can make company ownership financially advantageous. - Flexible ownership structure
A company can have multiple shareholders and directors, making it easier to share investment costs and profits among partners or family members.
However, there are also drawbacks. Incorporation involves administrative and legal responsibilities, including annual filings with Companies House, corporation tax returns, and potentially higher professional fees for accountants and solicitors.
Personal bridging loans explained
A personal bridging loan is taken out in your individual name and secured against property that you own or plan to buy.
Key benefits of personal bridging:
- Simplicity
Applying as an individual is often more straightforward. There is no need to set up a company, file separate accounts, or manage additional legal paperwork. - Faster underwriting
Because the borrower is an individual, lenders can assess the risk profile more quickly, especially when using providers like Goldhill Finance, who deliver lending decisions within 4 hours. - Lower setup costs
Without company formation fees, accountancy costs, or corporate compliance obligations, personal bridging can be more cost-effective for one-off projects or smaller loans. - Suitable for residential bridging
If you are buying a home to live in rather than an investment property, a personal bridging loan is usually the only appropriate option.
However, personal borrowing exposes you to direct liability. If the loan defaults, your credit and assets are at risk. Additionally, tax implications can be heavier, especially for higher-rate taxpayers, since profits from property sales are taxed as income or capital gains rather than through corporation tax.
Comparing tax implications
One of the biggest deciding factors between personal and company bridging is taxation.
- Personal ownership: profits are taxed under income or capital gains tax. If you are a higher-rate taxpayer, this can significantly reduce your take-home profit.
- Limited company ownership: profits are taxed under corporation tax, and dividends can be drawn later. This structure provides enhanced control over the timing and method of profit distribution, thereby enhancing long-term tax planning.
However, withdrawing profits from the company as dividends will still attract personal tax, so the benefit depends on your overall strategy and income level.
How lenders assess each option
While some high-street banks are cautious about lending to companies, specialist bridging lenders like Goldhill Finance are highly experienced in structuring loans for both personal and corporate borrowers.
For limited companies, lenders typically review:
- Company registration details (usually an SPV for property)
- Director guarantees
- Property value and exit strategy
For individuals, lenders focus on:
- Personal credit history
- Property value and security
- Exit plan (sale, refinance, or completion of development)
Goldhill simplifies this process by removing many traditional hurdles. Their loans require no proof of income, making them accessible for investors who might have irregular earnings or complex financial structures.
When a limited company is the better route
You may benefit from a company structure if:
- You plan to build or hold a property portfolio long-term
- You are a higher-rate taxpayer and want to reduce your overall tax burden
- You expect to reinvest profits into further projects
- You want to protect your personal finances and keep property risks separate
This setup is especially effective for professional developers, landlords, and investors managing multiple projects a year.
When personal bridging makes more sense
Applying in your own name may be the right choice if:
- You are completing a single transaction, such as a quick sale or refurbishment
- The property will be your main residence
- You prefer a simpler structure with minimal paperwork
- You want to access funding quickly without setting up a company
For many first-time investors or homeowners, personal bridging can provide the flexibility and speed needed to complete a purchase efficiently.
Which is more cost-effective?
While company loans may save tax in the long term, they can involve higher setup costs and ongoing obligations. Personal loans may appear cheaper upfront but could be less efficient over time if profits are significant.
Ultimately, the most cost-effective route depends on your goals. An investor buying, refurbishing, and selling multiple properties in a year might benefit from a company structure. A homeowner bridging between sales might prefer the simplicity of personal lending.
Expert support from Goldhill Finance
Choosing between a limited company and personal bridging loan should never be a guess. Goldhill Finance provides personalised guidance to help borrowers choose the best route based on their circumstances.
With flexible terms, no upfront or exit fees, and funds released within days, Goldhill’s process is built for both seasoned developers and first-time buyers who need reliable short-term finance.
Whether you are borrowing £10,000 or £500,000, Goldhill’s team guarantees transparent advice and prompt decisions to ensure you never miss opportunities.
Final thoughts
In 2025, both limited company and personal bridging loans have their place. The right route depends on your tax position, risk tolerance, and long-term investment goals. By working with an experienced lender like Goldhill Finance, you can access tailored funding with speed, flexibility, and confidence.