Bridging Loan Rates UK 2026 — What You'll Actually Pay

What Are Bridging Loan Rates in the UK Right Now?

As of March 2026, bridging loan rates in the UK start from around 0.44% per month for the most competitive deals — typically low-LTV residential bridges with strong exit strategies. The average rate across all bridging products sits between 0.55% and 0.85% per month, which translates to an annualised cost of roughly 6.6% to 10.2%.

Unlike traditional mortgages, bridging loan rates are always quoted monthly rather than annually. This is because bridging is short-term finance — typically 1 to 24 months — so a monthly figure gives you a clearer picture of the actual cost for the period you need the funds.

It's important to note that the headline monthly rate is only part of the total cost. Arrangement fees (typically 1–2% of the loan amount), valuation fees, and legal costs all add to the overall expense. When comparing bridging lenders, always look at the total cost of the bridge — not just the monthly rate.

Bridging Loan Rates by LTV

Loan-to-value ratio is the single biggest factor in determining your bridging rate. Here's what you can realistically expect in 2026:

Under 60% LTV: 0.44% to 0.55% 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 £1,100 to £1,375.

60% to 70% LTV: 0.55% to 0.75% 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 Affects Your Bridging Loan Rate?

Beyond LTV, several factors influence the rate you'll be offered. 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 in 5 days rather than 3 weeks, some lenders charge a premium for expedited processing. However, many specialist bridging lenders include fast completion as standard.

How to Calculate the Total Cost of a Bridging Loan

The total cost of a bridging loan includes the interest charges plus all fees. Here's a worked example:

Loan amount: £250,000. Monthly rate: 0.65%. Term: 12 months. Arrangement fee: 1.5%.

Monthly interest: £250,000 × 0.65% = £1,625. Total interest over 12 months: £1,625 × 12 = £19,500. Arrangement fee: £250,000 × 1.5% = £3,750. Total cost: £19,500 + £3,750 = £23,250. Total repayable: £250,000 + £23,250 = £273,250.

If the interest is 'rolled up' (added to the loan rather than paid monthly), you won't make monthly payments — the full amount including interest is repaid when the bridge completes. If the interest is 'serviced', you pay the £1,625 each month and only repay the original £250,000 at the end.

Our bridging loan calculator lets you adjust the loan amount, term, monthly rate, and arrangement fee to see the total cost for your specific deal.

How to Get the Best Bridging Rate

The most effective way to secure a competitive rate is to keep your LTV as low as possible. If you can put in more equity or a larger deposit, you'll access better pricing. Even moving from 72% to 68% LTV can shift you into a lower rate band.

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% with a 2% arrangement fee may cost more overall than one offering 0.65% with a 1% fee, especially on shorter-term bridges.

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