Bridging Loan Rates by LTV — 60%, 70% and 75% Bands Explained

Why LTV Sets Your Bridging Rate

Loan-to-value is the ratio between what you want to borrow and what the security property is worth. Borrow £150,000 against a £250,000 property and your LTV is 60%. It is the single biggest factor in the rate a bridging lender will offer you — ahead of property type, loan size, and your credit history.

The reason is straightforward. A bridging lender's protection is the property. The more equity sitting underneath the loan, the more room there is for the sale or refinance to come in below expectations and still clear the debt. Lenders price that risk in bands, and the step between bands is larger than most borrowers expect.

Bridging rates are always quoted monthly rather than annually, because the finance is short-term — typically 1 to 24 months. To see live rates across our panel for a specific loan amount and property value, use the comparison table on our homepage. This guide explains what sits behind those numbers.

Bridging Loan Rates by LTV Band

Here is what you can realistically expect at each band as of August 2026:

Under 60% LTV: 0.55% to 0.75% per month. These are the headline rates available to borrowers with significant equity or large deposits. At this LTV, lenders face minimal risk and price accordingly. On a £250,000 bridge, this means monthly interest of £1,375 to £1,875.

60% to 70% LTV: 0.75% to 0.95% per month. Still competitive rates, but the increased LTV means slightly higher pricing. Most standard residential and commercial bridges fall into this bracket.

70% to 75% LTV: 0.75% to 1.0% per month. This is the maximum LTV for most mainstream bridging lenders. Rates increase to reflect the higher risk, but deals are still readily available for strong applications.

Above 75% LTV: 1.0% to 1.5% per month. Only specialist lenders operate at these LTVs, and they are typically reserved for exceptional circumstances — such as experienced developers with a proven track record or borrowers with very strong exit strategies.

What Else Moves Your Rate Within a Band

LTV sets the band. These factors decide where you land inside it. Property type matters — standard residential properties attract the lowest rates, while commercial, mixed-use, or development sites carry a premium due to the additional complexity and risk involved.

Your exit strategy is equally important. A bridging lender needs confidence that the loan will be repaid. A confirmed sale (with exchange of contracts) or a mortgage offer in principle from a mainstream lender is the strongest exit. A plan to 'sell on the open market' without a buyer lined up is weaker and may result in a higher rate.

Loan size plays a role too. Very small bridges (under £100,000) may attract higher rates because the lender's fixed costs represent a larger proportion of the deal. Conversely, large bridges (over £1 million) often benefit from preferential pricing.

The borrower's experience and track record can influence pricing on development and refurbishment bridges. An experienced developer with a history of successful projects may negotiate better terms than a first-time borrower.

Finally, speed matters. If you need completion at the faster end of the 2–12 week range, some lenders charge a premium for expedited processing. However, many specialist bridging lenders include fast turnaround as standard.

What Moving Down a Band Is Actually Worth

The gap between bands is worth putting numbers to, because borrowers routinely underestimate it. Take a £250,000 property and a 12-month term.

Borrow £180,000 and you are at 72% LTV — call it 0.95% per month. That is £1,710 a month, or £20,520 of interest across the year.

Borrow £168,000 instead and you are at 67% LTV, into the band below at around 0.85%. That is £1,428 a month, or £17,136 over the year. Borrowing £12,000 less saves £3,384 in interest — so the last £12,000 of that loan effectively costs you 28% to borrow.

That is why it is worth checking where your LTV falls before you fix the loan amount. If you are a little over a threshold and can cover the difference from savings or elsewhere, the arithmetic usually favours dropping below it. Our bridging loan calculator lets you test both figures side by side.

This section covers interest only. Arrangement fees, valuation, and legal costs sit on top, and our guide to bridging loan costs breaks every one of them down.

How to Move Into a Lower LTV Band

Put in more equity or a larger deposit. This is the blunt version, and it is the one that works — even a four-point move from 72% to 68% LTV can shift you into a lower band.

Challenge the valuation if it looks low. Your LTV is calculated against the lender's valuation, not the price you paid or what you think the property is worth. A valuation that comes in under expectations pushes you up a band through no fault of your own, and a surveyor will sometimes revisit it if you can evidence comparable local sales.

Add a second property as security. If you have equity elsewhere, some lenders will take a charge over both and calculate LTV across the combined value, which can drop you a band or two without you finding any more cash.

Have your exit strategy clearly documented before approaching lenders. If you're refinancing, get a mortgage Decision in Principle. If you're selling, get the property valued and ideally listed. A strong, credible exit de-risks the deal for the lender.

Compare multiple lenders — rates vary significantly across the market. A broker with access to a wide panel (like Bridging Loan Rates) can show you options you wouldn't find by approaching lenders directly. Many bridging lenders only work through intermediaries.

Consider the total cost, not just the monthly rate. A lender offering 0.55% may cost more overall than one offering 0.65% if you add on any exit fees or a longer minimum interest period — always compare the total charge for credit, not just the headline rate.

Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.