Interest Rates
Bridging Rates in 2026: What You Will Actually Pay a Month
Written by Justin, Principal · · Our guides are researched and drafted with digital tools, then written and approved by Justin, Principal, from his own experience.
First published 7 April 2026 · Updated
Bridging rates start from 0.50% a month (standard bridging: first charge, under 50% loan-to-value, straightforward cases; our lender data), as at 29 October 2026. Our completed deals over the 12 months to October 2026 averaged around 0.85% a month, most of them complex cases. Today's dated figures are on our rates page.
Two quotes land in your inbox. One has the lower rate. The other has the lower bill. They are not always the same quote.
The 30-second version
- Where it starts: from 0.50% a month on a straightforward first-charge loan under 50% loan-to-value.
- The catch: the rate is one line on the bill. Fees and exit charges can outweigh a small rate gap.
- What to do: compare quotes by total cost over your term.
What has changed since April
This post first ran on 7 April 2026. Since then, the Q2 2026 average across Bridging Trends contributors was 0.81% a month, against 0.82% in Q1 (Bridging Trends Q2 2026, published 25 August 2026; reported by Mortgage Solutions and MPA). Their average loan-to-value was 55%. The figure covers those contributors' own completed loans, regulated and unregulated, and rates vary with loan-to-value and the property.
Which rate is yours?
| Your deal | What it means for the rate | What to do next |
|---|---|---|
| Straightforward, under 50% LTV, clear exit | The standard from-rate is the starting point | Ask for the total cost, not just the rate |
| A complex case | Priced above the from-rate, case by case | Ask what is driving the rate |
| Two quotes, different rates | The lower rate may not be the lower cost | Add up fees and exit charges for your term |
The rate is not the whole cost
Illustrative. £200,000 for 12 months, interest rolled up.
| Cost | At 0.50% a month | At 0.85% a month |
|---|---|---|
| Interest | £12,000 | £20,400 |
| Lender arrangement fee, 1% | £2,000 | £2,000 |
| Our fee, generally 1% of the gross loan, due on completion | £2,000 | £2,000 |
| Total before valuation and legal fees | £16,000 | £24,400 |
Lender fees are typically 1-2%, and an exit fee of 0-1% applies where the lender charges one. A valuation (nil to about £2,000 on a loan this size) and both sets of legal fees (about £1,500 to £2,000 each) come on top, plus VAT. An application fee is possible on complex cases, agreed in writing first. We put every fee in writing before you commit.
The surprise: the rate is only part of the cost
Take £200,000 over nine months, interest rolled up. At 0.50% a month (our from-rate, as at 29 October 2026) the interest is £9,000; at 0.85% a month (our completed-deal average over the 12 months to October 2026, mostly complex cases) it is £15,300. Now add lender fees, which are typically 1-2%, and an exit fee of 0-1% where the lender charges one. A 2% lender fee and a 1% exit fee on the lower rate bring the cost to £15,000. A 1% lender fee and no exit fee on the higher rate bring it to £17,300. The two rates do not describe the same kind of deal, so this is not a like-for-like comparison. It shows how far the fees move the total. Our fee, valuation and legal costs are the same in both and are left out.
Where a loan has an early repayment charge, it is usually three months' interest; very occasionally six; some loans have none. Often the lender charges a minimum of three months' interest, due even if you repay within six weeks. In my view, three months is the most worth accepting, weighed against how long your exit will take, the other costs and any exit fee.
Before you compare quotes
- What monthly rate, and at what loan-to-value?
- What are the lender's arrangement and exit fees?
- Is there an early repayment charge, and for how long?
- What will the valuation and both solicitors cost?
- Is every fee, including ours, in writing?
Start here
Tell us the property, the price, the loan-to-value and your exit. We will cost it for you. It is a confidential, no-obligation chat.
More: Bridging loans overview · Calculator: compare total cost · Bridging loan costs explained
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