UK Bridging Loan Rates 2026
Bridging loan rates start from 0.44% per month for low-LTV, clean cases. Most deals land between 0.72% and 1.2% depending on the loan size, property type, exit strategy, and how much equity is in the deal. The current market average sits at around 0.72% per month.
That monthly figure is not the whole cost. Arrangement fees, exit fees, legal costs, and valuation all add to the total. A six-month bridge at 0.72% on £500,000 costs considerably more than £21,600 in interest once everything else is factored in.
This page sets out current rates across LTV bands, real cost examples with full fee breakdowns, and exactly what lenders look at when they price a deal.
Current Bridging Loan Rates UK
Bridging finance is always quoted monthly. Here is how rates sit across LTV bands at current market levels.
| LTV | Monthly Rate | Annual Equivalent |
|---|---|---|
| Up to 50% | 0.44% – 0.55% | 5.3% – 6.6% |
| Up to 65% | 0.55% – 0.75% | 6.6% – 9.0% |
| Up to 75% | 0.75% – 0.95% | 9.0% – 11.4% |
| Up to 80% | 0.95% – 1.20% | 11.4% – 14.4% |
| Above 80% | 1.20%+ | 14.4%+ |
The annual equivalent is included for reference – but it is not how lenders think about pricing and it is not how you should think about cost. Bridging is a short-term product. The question is what the facility costs across the months it runs, not what it would cost if it ran for a year.
The current market average of 0.72% per month reflects Q1 2026 data. Most borrowers will land somewhere in the 0.65% to 0.95% range depending on the deal profile.
Interest can be structured in three ways. Rolled-up interest accumulates during the term and is repaid in full at the end alongside the loan. Retained interest is deducted from the loan upfront based on an estimated term. Serviced interest is paid monthly and is typically only available on regulated cases. Which structure works best depends on your cashflow position and exit timeline – worth discussing with a broker before any application goes in.
Example Bridging Loan Costs
The monthly rate is only part of what you will pay. Here are two real scenarios with full cost breakdowns.
£250,000 loan – 65% LTV
- 6 months at 0.72%
- Interest (rolled-up): £10,800
- Arrangement fee (2%): £5,000
- Exit fee (1%): £2,500
- Legal and valuation: £2,000
- Total estimated cost: £20,300 – 8.1% of the loan
£500,000 loan – 70% LTV
- 9 months at 0.85%
- Interest (rolled-up): £38,250
- Arrangement fee (2%): £10,000
- Exit fee (1%): £5,000
- Legal and valuation: £3,500
- Total estimated cost: £56,750 – 11.4% of the loan
A few things to notice in both scenarios. The arrangement fee alone adds a significant chunk to the total – and it is charged on the loan amount, not the interest. Exit fees are not universal but common enough to factor in from the start. Legal costs vary but rarely come in under £1,500 on a clean case.
The other variable nobody plans for is time. Model the cost at your expected exit. Then model it at three months longer. If the numbers only work in the best case, the deal structure needs more thought before anything goes to a lender. Use our bridging loan calculator to run your own scenarios before you speak to anyone.
What Affects Your Bridging Loan Rate
LTV. The single biggest driver. Every step up in LTV adds more risk for lenders and cost for the borrower. At 60% you are a different proposition to 80% – more lenders, more competition, sharper pricing. Drop below 65% and the best rates in the market open up. Push above 75% and the pool narrows considerably. For a full breakdown of when 75% LTV is achievable and what it depends on, see our page on the maximum LTV available on a UK bridging loan.
Exit Strategy. A confirmed sale with contracts exchanged is the cleanest exit available. A refinance with heads of terms signed is close behind. An open-ended exit – an intention to exit without evidence – is priced to reflect the uncertainty. Lenders do not take your word for it. They want to see the exit, not hear about it. For a full breakdown of how lenders assess exit options, see our page on how bridging loan exit strategies affect LTV and rate.
Borrower Experience. First-time bridging borrowers pay more. Experienced investors with a track record of completed deals – especially those who have used the same lender before – access better pricing. Most lenders reserve their sharpest rates for repeat borrowers with clean histories. If this is your first bridge, that is not a reason to avoid it, but it is a reason to be realistic about where your rate will land.
Property Type. Standard residential attracts the lowest rates and the widest lender choice. Step into HMOs, semi-commercial, short-term rentals, or development sites and the options narrow. Commercial bridging typically runs between 0.75% and 2% per month depending on asset type and complexity.
Loan Size. Above £1 million, lenders compete hard. Below £100,000, rates tend to run proportionally higher. The sweet spot for the sharpest rates is broadly £150,000 to £3 million on a clean deal.
Credit History. Bridging is asset-led, which means a CCJ or missed payment will not automatically close the door. But it will narrow your options and push the rate up. Recent adverse credit has more impact than older issues – lenders look at the history, not the single incident.
Open vs Closed Bridging Loans
A closed bridge has a fixed repayment date – contracts exchanged on a sale, or a refinance offer already in place. The lender knows when they are getting paid back. That certainty is priced in – closed bridges typically run 0.1% to 0.2% per month cheaper than equivalent open deals.
An open bridge has no fixed repayment date. You set a maximum term – usually up to 12 months – but the exact exit date is not confirmed. Most purchase, refurbishment, and development deals start as open bridges. So do most auction finance and chain break cases, which often convert to closed once contracts are exchanged.
If you have a clear view of your exit – even if the date is not locked in – tell your broker before anything goes to a lender. It changes how the deal is presented and can affect the rate you are offered.
First Charge vs Second Charge Bridging
A first charge bridging loan means the lender holds primary security over the property. No other lender sits ahead of them in the repayment queue. That is the lowest risk position available and it is priced accordingly – first charge is the most competitively priced bridging product in the market.
A second charge loan sits behind an existing mortgage. The bridging lender is second in line if something goes wrong. That additional risk runs 0.1% to 0.3% per month higher than an equivalent first charge deal, and maximum LTV is typically lower.
If you own the property outright, first charge bridging is available. If there is an existing mortgage, you either take a second charge or refinance the existing debt into the bridge as part of the transaction. A bridging loan broker will tell you which route works for your deal before you approach any lender.
Regulated vs Unregulated Bridging
Most people do not think about this until a lender asks. It matters from the start because it determines which products exist for your deal and which lenders can touch it.
Regulated bridging applies when the loan is secured against a property you or a close family member lives in or intends to occupy. The FCA requires full affordability assessments. That adds time but it also adds protection. Rates sit between 0.5% and 0.85% per month on most regulated cases.
Unregulated bridging covers buy-to-let properties, commercial assets, land, HMOs, and development sites. No FCA affordability requirement. Lenders focus on asset value and exit quality, which is why unregulated cases move faster – typically five to ten working days on a clean application. Rates range from 0.44% to 1.5%+ per month depending on the deal.
The majority of UK bridging loans are unregulated. If you are unsure which applies to your situation, establish that with a broker before approaching any lender – it determines which products are available to you and which lenders can consider the case.
How to Get the Lowest Bridging Loan Rate
The rate you are offered is not fixed. It moves based on how the deal is structured and how it is presented. These are what actually make a difference.
Keep LTV below 70%. More equity means more lenders competing for the deal. Competition drives pricing down. If you can put more in to hit a lower LTV band, it almost always pays to do so.
Structure a closed loan where possible. A confirmed exit – contracts exchanged on a sale, or a signed refinance offer – earns better pricing than an open-ended position. If you have it, present it.
Use a whole-of-market broker. Lenders price differently and their appetite shifts without announcement. A broker with direct lender relationships knows who is competitive on your specific deal type right now – and creates competition between them. That rarely happens if you approach lenders directly.
Get documentation together early. Clean, complete documentation presented at the outset moves faster and signals competence. Gaps that surface mid-application create delays and occasionally kill deals. Title deeds, bank statements, exit evidence, and proof of identity should be ready before anything goes in.
Do not overstate the term. If you need four months, ask for four months. A shorter, focused timeline shows you know your deal. Lenders respond to that. Asking for twelve months when you expect to exit in four flags uncertainty and will push pricing up.
Conclusion
Bridging loan rates are not a fixed number. They are the result of how your deal is structured, how your exit is evidenced, and which lender you end up in front of.
Get the LTV right. Present a confirmed exit. Use a broker who knows the market and can create competition between lenders. Those three things have more impact on your rate than anything else.
The difference between the best and worst rate available on the same deal can run to 0.4% or 0.5% per month. On a £500,000 loan over nine months that is a meaningful number. It is worth getting right before anything goes to a lender.
Frequently Asked Questions
What is the average bridging loan rate in the UK?
Most deals land between 0.65% and 0.95% per month – the market average sits at around 0.72%. Clean cases at low LTV can be quoted from 0.44%.
High-LTV or complex deals run above 1.2%. The monthly rate is only part of the cost – always request the complete figure including fees.
Are bridging loans more expensive than mortgages?
Yes – and significantly so on an annualised basis. Standard mortgages run at 4% to 6% annually. Bridging annualises at 5.3% to 18%+.
You are paying for speed and flexibility, not long-term affordability. The comparison only makes sense if the deal requires it.
Can I get a bridging loan with bad credit?
In many cases yes – bridging is asset-led, not income-led. Security and exit are what matter to lenders – a CCJ or default will not automatically exclude you.
It will narrow your options and affect your rate, but it is not an automatic no.
What fees are charged on top of interest?
Arrangement fee (1% to 2%), exit fee (0.5% to 1%, not always charged), valuation, and legal fees for both sides. Always model the full cost, not just the monthly rate.
On a six-month bridge the fees can equal or exceed the interest.
How quickly can a bridging loan complete?
Five to ten working days on a clean case. Two to four weeks if it is complex. The most common cause of delay is documentation gaps discovered mid-application.
Having everything ready before you approach a lender removes most of the risk.
What is the maximum LTV available on a bridging loan?
Most lenders go to 75% to 80% on residential security. Some specialists reach 85% at rates above 1.2% per month.
100% bridging is only possible with additional cross-charged security against another asset.
Is bridging finance FCA regulated?
Only when secured against a property you or a family member occupies or intends to occupy.
Investment and commercial bridging sits outside FCA regulation. Your broker must be FCA-authorised regardless of which type applies to your deal.
Do all bridging lenders charge exit fees?
No – but most do. Certain lenders will give you a choice: a slightly higher rate with no exit fee, or a lower rate with one.
Ask your broker to model both so you can compare true total cost instead of just the headline rate alone.
Can expats get UK bridging finance?
Yes – many specialist lenders offer bridging to expats and non-UK residents. Solid security and a confirmed exit are the primary requirements.
Work with a broker who handles expat cases regularly – not every lender operates in this space.
Get Bridging Loan Terms Within 24 Hours
Most bridging enquiries we receive have already been to a lender. Some have been declined. Some are stuck mid-application. A few have been offered terms but are not sure if they are competitive.
All of them would have been better placed starting with a broker.
Commercial Finance Network is a whole-of-market broker working with property investors and businesses across the UK and internationally. We have direct relationships with over 200 bridging lenders – including specialist desks that do not deal with borrowers directly. Tell us your deal and we will come back with competitive terms, a full cost breakdown, and a clear recommendation. Usually within the same working day.
Call: +44 1494 622 111
Email: [email protected]
Commercial Finance Network is directly authorised and regulated by the Financial Conduct Authority.