The bridging loan for buying new-build: how it works, 2026

Published on September 14, 2026 · Financing

Family preparing financing for their new-build purchase

You have found the ideal new-build home, but your current property has not yet sold? This is a very common situation, and it can quickly become a financial headache. How do you finance a new purchase when your capital is still tied up in your current residence? The answer is a bridging loan. Used well, this tool stops you letting a fine new-build opportunity slip away. Poorly managed, it can create unnecessary pressure. In this 2026 guide, we explain concretely how a bridging loan works for new-build, its advantages, its limits, and the points to watch before committing.

What exactly is a bridging loan?

A bridging loan is a short-term credit that acts as a "bridge" between buying your new home and selling your old one. The bank advances you part of the estimated value of your current property, allowing you to buy without waiting for the sale to be signed.

In practice, the bank estimates the value of your property, then lends you a percentage of that value. Once your old property is sold, you repay the bridging loan from the sale proceeds. During the interim period, you generally repay only the interest (or nothing at all in some so-called "dry bridging" formulas with a full repayment holiday).

Bridging loans and buying new-build: an important particularity

Buying new-build changes the picture on one essential point: the timetable. Unlike a purchase of an older property where you move in quickly, a new home bought under VEFA (Vente en l'État Futur d'Achèvement, off-plan sale) is paid for through successive instalment calls, as construction progresses. Delivery may take place 12, 18 or 24 months after reservation.

This timing can be an asset: you have more time to sell your current property under good conditions, without selling at a discount. A JL HOME adviser can help you align the backward schedule between instalment calls and the forecast sale.

How is the amount of a bridging loan calculated?

The amount advanced by the bank is never equal to 100 % of the value of your property. The bank applies a discount to protect itself against the risk that the property sells for less or more slowly than expected. In practice, the advance generally falls within a prudent range of the estimated value. The exact percentage depends on your profile, your bank and the nature of the property being sold.

Important: these percentages vary from one institution to another and change according to the current lending context. Do not rely on any fixed figures found online: obtain a personalised simulation.

An example to understand the principle

Imagine a property valued at 300 000 € and an outstanding loan balance of 50 000 € on your current mortgage. After applying the bank's discount, the bank calculates the amount it can advance to you, from which it deducts the outstanding loan balance. The remaining available amount constitutes your deposit for the new-build purchase. Depending on the price of the property you are targeting, a conventional complementary loan may top up the financing.

This reasoning must always be checked with a professional, as it depends on your debt-to-income ratio (capped at 35 % including insurance) and your residual income.

The different types of bridging loan

There are several formats, and choosing the right one depends on your situation:

The standalone bridging loan

It is used when the price of the new-build property is lower than or equal to the amount you will receive from the sale. You then do not need a complementary loan: the bridging loan is sufficient.

The linked (or paired) bridging loan

This is the most common case for new builds: the price of the new property is higher than the value of your current property. The bank then combines the bridging loan with a conventional amortising mortgage to finance the difference.

The bridging loan with a full or partial deferral

Partial deferral: you repay only the interest during the bridging period.
Full deferral: you repay neither capital nor interest for the duration of the bridging period, the whole amount being settled on sale. This option is more comfortable for cash flow but often more costly overall.

Duration and cost: points to watch

A bridging loan is a short-term credit: its term is generally limited, with a possible renewal subject to conditions. The main risk is failing to sell your property within the allotted time. To avoid this:

Have your property valued realistically by several professionals. An overly optimistic price lengthens the time it takes to sell.
Plan the marketing of your property as soon as you reserve your new-build home.
Allow a safety margin in your budget in case the sale is slower.

On cost, bear in mind that interest on the bridging loan accrues throughout the interim period. The longer the sale drags on, the higher the bill. This is why the timing flexibility offered by VEFA is a real advantage: it gives you the time to sell at the right price.

The advantages of new build for your bridging-loan project

Beyond timing, buying new offers concrete financial benefits. Reduced notary fees (of the order of 2 to 3 % for new build, compared with 7 to 8 % for older property) lighten your overall outlay. You also benefit from homes built to the latest energy standards, with no works to plan. Depending on your project and area, other schemes may exist (PTZ for a main residence, reduced VAT subject to conditions in certain areas). These schemes are subject to precise criteria: an adviser at JL HOME checks your eligibility on a case-by-case basis.

How do you secure your project?

A bridging loan is not a product to be taken lightly. The key to a successful project comes down to three words: anticipation, valuation, support. A well-prepared arrangement turns a constraint (sell then buy) into an opportunity (buy the ideal property without letting it go).

At JL HOME, our advisers help you align the timetable of your VEFA with the sale of your current property, assess your borrowing capacity and choose the most suitable format.

➡️ Want to see your financing clearly? Book an appointment with an JL HOME adviser or start your simulation to build a tailored plan, suited to 2026.

In short, a bridging loan is a powerful tool for buying new without waiting for the sale of your current home. Provided you value your property realistically, align the timetable carefully and surround yourself with professionals, it opens the door to your future home with peace of mind.

Frequently asked questions

Can a bridging loan be combined with a PTZ for a new-build home?

Combining the two is possible depending on your circumstances, as the PTZ funds your main residence subject to income and area conditions. The exact arrangement depends on your profile: ask a JL HOME adviser to check your eligibility and run a dedicated simulation.

What happens if I don't sell my property in time?

A bridging loan has a limited term, with a possible extension subject to conditions. If the sale is delayed, interest continues to accrue. It is therefore essential to estimate your property realistically and to plan to put it on the market as soon as you reserve.

Is a bridging loan more advantageous for a new-build purchase than for a resale property?

A new build offers a timing advantage: a VEFA is paid through staged payments spread over the construction period, which leaves more time to sell at a good price. Reduced notarial fees on new builds also ease the overall outlay.

How much can the bank lend me?

The bank applies a discount to the estimated value of your property as a safeguard. The percentage varies by institution, your profile and the lending context. No debt ratio above 35% including insurance is accepted. Request a personalised simulation.

What is a bridging loan for a new build?

A bridging loan is a short-term credit (generally 12 to 24 months) that allows you to buy a new home before selling your current property. The bank advances part of the estimated value of the property to be sold, which is repaid in full once the sale is completed.

What percentage of the property's value does the bank advance with a bridging loan?

The bank applies a safety discount: it generally advances between 70% and 80% of the estimated value of the property to be sold. This percentage depends on the quality of the property, its liquidity and whether a preliminary sale agreement has already been signed.

What is the maximum term of a bridging loan?

A bridging loan has a standard term of 12 months, generally renewable once, giving a maximum of 24 months. This term is particularly suited to a VEFA new-build purchase, where completion often takes place 12 to 24 months after the reservation.

Why is a bridging loan advantageous for a VEFA purchase?

In a VEFA new-build purchase, the price is paid through staged payments spread over the whole construction period. This extended schedule leaves more time to sell your current property at a good price, without having to sell it cheaply, unlike a resale purchase where you move in immediately.

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