Chapter 8 of 10 · Moving home · 1 of 4
Bridging loans in Ireland: the April 2026 rule change and what they cost
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
Bridging finance for movers: the April 2026 exemption from the 3.5x income limit, typical terms, costs, risks and which lenders offer it.
Check before you hire: a mortgage advisor should be on the register kept by the Central Bank of Ireland. Central Bank register
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
A bridging loan covers the gap when you buy a new home before your old one has sold. It is short, it is secured on the old home, and it is paid off from the sale. Since 8 April 2026 it has been easier to get, because the Central Bank changed its rules.
This guide explains the change, how a bridging loan works, what it costs month by month, the risks, and who offers it. The how much can I borrow tool shows your mover limit, which a bridging loan now sits outside.
A worked example first
Deirdre and Conor own a home worth €450,000 with €150,000 left on the mortgage. They earn €100,000 between them. They want to buy a house for €550,000, and they have not sold yet.
- Their new mortgage limit as movers is 3.5 times income: €350,000.
- The deposit on the new home is 10%: €55,000, from savings.
- That leaves €145,000 of the price to find until the old home sells.
A bridging loan of €145,000, secured on the old home, covers it. When the old home sells, the €450,000 clears the old mortgage of €150,000 and the bridging loan of €145,000, with about €155,000 left after costs.
Before 8 April 2026, the bridging loan counted in the income limit. €350,000 plus €145,000 is €495,000, which is nearly 5 times their income. The rules would have blocked it.
From 8 April 2026, the bridging loan is left out of the income limit. The new mortgage of €350,000 is 3.5 times income on its own. The deal fits.
What a bridging loan is
A bridging loan is a short-term loan that bridges the time between two events: buying the new home and selling the old one. It is secured on the old home, which means the lender can sell that home if the loan is not repaid.
Most bridging loans are interest only. You pay the interest each month and the whole loan at the end, from the sale money. Some lenders roll the interest up, so you pay nothing monthly and the interest is added to the loan and cleared from the sale.
It is a loan for people who already own a home and are moving. It is not for first-time buyers.
The April 2026 rule change
The Central Bank's mortgage measures limit what a lender can lend. For a second or subsequent buyer, the loan-to-income limit is 3.5 times gross income. Gross income is pay before tax. The loan-to-value limit is 90% of the price.
Until April 2026, a bridging loan counted as part of the borrowing against the income limit. A mover who needed a bridge often could not get one, because the new mortgage plus the bridge went over 3.5 times income.
On 8 April 2026, the Central Bank amended the measures. A bridging loan secured on the borrower's own home is now left out of the loan-to-income limit, for up to 18 months. The loan-to-value limit still applies to the new mortgage. The amendment is S.I. 141/2026. The changes page records it.
What the change does not do: it does not make a lender lend. Each lender still runs its own tests, including whether you can pay the interest on the bridge and the new mortgage at the same time.
Typical terms
| Term | What is typical |
|---|---|
| Length | 6 to 12 months from most lenders; up to 18 months under the Central Bank's exemption |
| Security | A charge on the old home, sometimes on both homes |
| Repayment | Interest only each month, or interest rolled up; the loan cleared on the sale |
| Amount | Up to a share of the old home's value, less the mortgage on it |
| Condition | Often sale agreed on the old home, or a plan the lender accepts |
Lenders differ. Some only bridge for existing mortgage customers. Some want the old home sale agreed before they lend. Ask for the terms in writing before you rely on them.
What it costs, month by month
The rate on a bridging loan is higher than a standard mortgage rate. Each lender sets its own. The figures below use 6% only to show the sum; your lender's rate may differ.
| Bridging loan | Interest a month at 6% | Interest over 6 months | Interest over 12 months |
|---|---|---|---|
| €100,000 | €500 | €3,000 | €6,000 |
| €145,000 | €725 | €4,350 | €8,700 |
| €200,000 | €1,000 | €6,000 | €12,000 |
The sum is the loan times the rate, divided by 12. On top of the interest:
- An arrangement fee, which some lenders charge as a percentage of the loan.
- A valuation of the old home, about €185.
- Your solicitor's work on the extra charge, on top of the sale and purchase fees.
- The old mortgage's repayments, which continue until the sale.
- The new mortgage's repayments, from the day you draw it down.
Add them all up for the months you expect the bridge to last, then add some months in case the sale is slow. That is the cost of buying first. The lender must give you the rate, the fees and the total in writing before you sign.
The risks
The old home takes longer to sell. Every extra month is another month of interest, on top of two mortgages. If the bridge runs out, the lender can ask for repayment, and the Central Bank's exemption ends at 18 months.
The old home sells for less. If the sale falls short of the old mortgage plus the bridge, the shortfall is still owed. Price the old home with care, and read the cost of selling figures before you commit.
Rates on the bridge. Bridging rates are often variable. A rise during the bridge raises the monthly cost.
Rolled-up interest grows. If you pay nothing monthly, the interest is added to the loan each month, and the next month's interest is charged on the bigger figure.
If the numbers go wrong, talk to the lender early. MABS, the free money advice service, helps with mortgage difficulty. The money help page lists the free routes.
Who offers bridging loans
Bridging is a small market in Ireland. In general:
- Some of the main lenders offer it to existing customers who are moving, usually with the old home sale agreed.
- Some specialist lenders offer bridging at higher rates with fewer conditions.
- Credit unions do not usually bridge, but some offer a short loan for a deposit.
The list changes. A broker (on the Central Bank's register) or a mortgage advisor can tell you who is bridging now and on what terms. Before you deal with any lender, check it on the Central Bank's register.
The alternatives
- Both deals on one day. A linked closing avoids a bridge entirely, because the sale money arrives the same day the purchase needs it. The selling and buying at the same time guide explains the day.
- Sell first and rent. Two moves, no bridge, a known figure.
- A short loan for the deposit only. If the only gap is the 10% deposit at contracts, a smaller personal loan can cover it until closing day.
- A longer closing date. Agree a closing date on the purchase that gives your sale time to complete.
The trading up guide puts the whole move together, from equity to fees.
Where this leaves you
Check your mover limit on the how much can I borrow tool, and work out the bridge you would need from the price less the mortgage and the deposit. The moving home journey puts the steps in order. To find out who is bridging now and on what terms, get quotes from a broker through the form.
Questions people ask
What is a bridging loan?
A short loan that covers the gap between buying a new home and selling your old one. It is secured on the old home and paid off from the sale. You usually pay interest only each month until then.
What changed for bridging loans in April 2026?
From 8 April 2026, a bridging loan secured on your own home no longer counts in the Central Bank's loan-to-income limit, for up to 18 months. Before that, the bridging loan was added to your new mortgage against the 3.5 times income limit for a mover.
How much does a bridging loan cost in Ireland?
The rate is higher than a standard mortgage and each lender sets its own. On €150,000 at 6%, used here only to show the sum, the interest is €750 a month. Add an arrangement fee, a valuation and legal costs. The lender must give you the figures in writing.
Which banks do bridging loans in Ireland?
Bridging is offered by some of the main lenders to existing customers who are moving, and by some specialist lenders. The list changes. A mortgage broker on the Central Bank's register can tell you who offers it now. Check any lender on the Central Bank's register.
How long can a bridging loan last?
The Central Bank's exemption covers up to 18 months. Lenders set their own terms within that, often 6 to 12 months, with the loan repaid in full when the old home sells.