Bridging Loan Rates

The total cost depends on your loan amount, interest rate, term length, and fees. As a rough guide, expect total costs of 8–12% of the loan amount for a typical 6–12 month facility including interest, arrangement fee, exit fee, valuation, and legal costs. Use our calculator for figures specific to your deal.

Bridging loan rates are almost always quoted monthly, not annually. So 0.65% a month equates to 7.8% per annum. This is different from mortgages which quote annual rates. Always check whether a rate is monthly or annual when comparing.

Interest is often rolled up, so there are often no monthly payments, though some lenders let you pay monthly. Rolled-up interest accrues during the term and is repaid as a lump sum when you exit the loan, keeping your cash free for the project.

Yes. Where there is an early repayment charge, it is usually three months' interest; very occasionally six; some loans have none. We always clarify this before you commit.

Bridging loans are short-term, arranged quickly, and carry different risk profiles to long-term mortgages. You're paying for speed and flexibility — not a 25-year commitment. When you factor in the short duration and the ability to act on time-sensitive opportunities, the total cost is often far less than the cost of missing the deal entirely.

The rates on this page are indicative starting points. Your actual rate depends on LTV, property type, credit history, exit strategy, loan size, and whether it's an open or closed bridge. To find out, speak to us — we'll give you indicative terms within 4 hours on straightforward deals, often quicker.

It depends on the property and the LTV. Low-leverage deals on standard residential may qualify for a desktop valuation (an estimate of value made from records and data, without a visit to the property): typically nil to about £100, plus VAT. Most bridging deals require a full RICS Red Book valuation (up to about £2,000, plus VAT; more on larger or complex loans, depending on the property). We'll tell you what to expect before you commit.

UK bridging rates in 2026 start from 0.50% a month (first charge, under 50% loan-to-value, straightforward cases) and rise with LTV, security type, regulated vs unregulated, and borrower profile. Clean residential cases at low-to-mid LTV price keenly at the lower end; commercial, second-charge, adverse-credit or high-LTV cases price higher. Bridging interest is quoted monthly because the term is short — comparing the monthly rate against an annual mortgage rate is misleading.

For a clean first-charge residential bridge under 50% loan-to-value with a clear exit, bridging rates start from 0.50% a month. Rates rise with loan-to-value, and specialist cases — commercial, second-charge, adverse credit, high-LTV — are priced higher or case by case; the rate table on this page shows today's published rates by LTV band. But the headline monthly rate is only part of the picture: a slightly higher rate with no exit fee and no minimum-term penalty often beats a lower rate with stacked fees. Always compare the total cost of borrowing over your expected term, not the headline rate alone.

On a £500,000 bridging loan over 9 months at 0.76% a month, the average published rate across 42 lenders, as at 25 October 2026, interest rolls up to £34,200. Bridging rates start from 0.50% a month (first charge, under 50% loan-to-value, straightforward cases); development exit is priced case by case. Add a 1% arrangement fee (£5,000; lender fees are typically 1–2%), valuation (£2,500), legal fees for both sides (£4,000) and our 1% fee (£5,000), and the total cost of borrowing is £50,700, about 10% of the loan. Use our calculator at /calculator/ to model the full cost for your own figures.

Yes. Bridging terms are most commonly 12 to 24 months; some lenders go to 36 months. Heavy refurbishment, land with planning and land without planning often use the longer end of that range where the deal justifies it. The longer the term, the more rolled-up interest accrues, so most borrowers plan to exit well inside the maximum term.