Written by Justin, Principal · 28 October 2026 · Our guides are researched and drafted with digital tools, then written and approved by Justin, Principal, from his own experience.

A £200,000 bridging loan for 12 months costs £19,100 to £30,400 on our October 2026 figures, before VAT on valuation and legal fees and before any exit fee.

You have seen "from 0.50% a month" and fixed that number in your head. Then the quote arrives with six more lines. The menu price is not the bill.

The 30-second version

The rate is one line. Standard bridging starts from 0.50% a month (first charge, under 50% loan-to-value, straightforward cases, as at 29 October 2026). Our completed bridging deals over the last 12 months averaged around 0.85% a month, most of them complex cases.
The rest is fees: lender arrangement, exit, valuation, legal and ours.
The catch: a minimum interest period, covered below.
How long: typically 5 to 7 working days; some deals take longer, up to around 14, with the valuation usually the slowest step.

Every fee, on a £200,000 loan for 12 months

Interest is simple and rolled up, so there are often no monthly payments.

Cost	What to expect	Amount
Interest	The standard rate, or our completed-deal average	£12,000 to £20,400
Lender arrangement fee	Typically 1-2% (1% used here)	£2,000
Exit fee	Up to 1%; some lenders charge none	£0 to £2,000
Valuation	Desktop nil to about £100; full up to about £2,000	£100 to £2,000
Lender's legal fees	About £1,500 to £2,000	£1,500 to £2,000
Your solicitor	Usually about the same or slightly less	£1,500 to £2,000
Our fee	Generally 1% of the gross loan, due on completion	£2,000

Illustrative. Valuation and legal fees carry VAT at 20%. The £19,100 low end uses 0.50%, a £100 desktop valuation and £1,500 legal fees each side, with no exit fee. The £30,400 high end uses 0.85%, a £2,000 valuation and £2,000 legal fees each side, also with no exit fee.

On loans larger than £200,000, an illustrative valuation costs £500 to £3,000 or more plus VAT, and legal fees £1,500 to £5,000 or more on each side plus VAT. On complex cases we may also charge an application fee, agreed with you in writing first. We put every fee in writing before you commit.

Same £200,000 loan, 6, 9 or 12 months

The same two figures: 0.50% a month (standard bridging: first charge, under 50% loan-to-value, straightforward cases, as at 29 October 2026) and about 0.85% a month (our completed deals, 12 months to October 2026, mostly complex cases).

£200,000, simple interest, rolled up	6 months	9 months	12 months
Interest at 0.50% a month	£6,000	£9,000	£12,000
Interest at 0.85% a month	£10,200	£15,300	£20,400
Lender arrangement fee, 1% (same in both)	£2,000	£2,000	£2,000
Our fee, 1% (same in both)	£2,000	£2,000	£2,000
Total at 0.50%, before valuation and legal costs	£10,000	£13,000	£16,000
Total at 0.85%, before valuation and legal costs	£14,200	£19,300	£24,400

Illustrative. Rates as dated above; every case is priced individually.

The fees stay the same whatever the term. Interest is what grows: at 0.50% it adds £1,000 a month, at 0.85% £1,700. From 6 to 12 months the total rises by £6,000 at the lower figure and £10,200 at the higher, and every pound of that is interest. So the rate headline tells you the monthly cost; the term, and the minimum interest period below, tell you the total.

The cost to check first: early repayment

In my experience, this is the cost borrowers underestimate most. Many expect to pay only for the weeks they use. Repay after six weeks and they assume six weeks' interest.

One example: a £250,000 bridge in Salford, June 2025, at 0.9% a month. The three-month minimum was £6,750. Six weeks of interest would have been about £3,100. Shared with the client's permission.

Where there is 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.

Bridge, compare or ask?

Your situation	Your next move
The quote shows only a rate	Ask for the total cost over your expected term
You may repay early	Ask for the minimum interest period in writing
Two quotes, different rates	Compare the total at your expected term
Valuation and legal costs not listed	Add £3,100 to £6,000 on £200,000, plus VAT

Before you sign

Is there an exit fee, and what percentage?
Is every fee in writing?

In my experience, it pays to weigh the whole job: how long the exit will take, what the costs add up to and whether there is an exit fee. Rates, fees, minimum interest periods, exit fees and conditions can be negotiated.

Start here

Tell us the property, the price and your timeline. We will cost it with every fee in. It is a confidential, no-obligation chat.

More: How much does a bridging loan cost? The full guide · Rates · Calculator · Valuation types · How long does a bridging loan take?

We arrange unregulated business and investment loans, for business or investment purposes only - never secured on a home you or your family live in. A loan on such a home is regulated lending and belongs with an FCA-authorised mortgage adviser. Funding Developers Limited is not authorised or regulated by the Financial Conduct Authority.

All the Fees on a Bridging Loan: What You'll Really Pay