Bridging Finance

Best Bridging Loan Rates

Understanding what drives bridging loan pricing and how to secure the most competitive rates. We search 130+ lenders to find the best deal for your situation.

Rate Guide

What determines your bridging loan rate?

Bridging loan rates vary significantly depending on several factors. Understanding what drives pricing helps you make informed decisions and position your application for the best possible terms.

At Doulton Bridging Finance, we search our panel of 130+ specialist lenders to find the most competitive rates for your specific circumstances. We look beyond the headline rate to assess the total cost of borrowing, including arrangement fees, exit fees, legal costs, and valuation charges.

Indicative Rate Guide

Prime residential, low LTVFrom 0.49% pm

Standard residential, moderate LTVFrom 0.59% pm

Commercial or semi-commercialFrom 0.65% pm

Adverse credit or complex casesFrom 0.75% pm

Second charge bridgingFrom 0.85% pm

Land or development sitesFrom 0.70% pm

Rates are indicative and subject to individual assessment. Your actual rate may differ based on the specifics of your case.

Key Factors

Six factors that affect your rate

Loan-to-Value (LTV)

The lower your LTV, the better the rate. Borrowing 50% of a property's value will attract significantly cheaper pricing than borrowing at 75%. If you can put more equity in, rates improve.

Property Type

Standard residential properties attract the lowest rates. Commercial, semi-commercial, land, and non-standard construction properties carry higher pricing due to perceived lender risk.

Exit Strategy

A clear, credible exit strategy is the single most important factor. Sale with an accepted offer or a remortgage with an agreement in principle will secure the best terms.

Credit History

Clean credit histories unlock the most competitive rates. Adverse credit is not a barrier to lending, but it will typically push rates higher. The severity and recency of issues matter.

Loan Size and Term

Larger loans often attract better rates as lenders compete harder for premium business. Shorter terms can also improve pricing as lenders face less duration risk.

First vs Second Charge

First charge bridging loans are cheaper than second charges. If there is an existing mortgage on the property, the bridging loan sits behind it, increasing risk and cost for the lender.

The Process

How we find you the best rate

Tell Us About Your Deal

Share the property details, loan amount, and your exit strategy. The more information we have, the more accurately we can identify the best rates available to you.

We Search 130+ Lenders

Our team compares rates and terms across our full panel. We do not just find the cheapest headline rate - we assess the total cost including fees, terms, and flexibility.

Receive Your Options

We present a shortlist of the best deals, clearly explaining the rates, fees, and terms of each so you can make an informed decision with full transparency.

We Handle Everything

Once you choose, we manage the application, valuation, and legal process through to completion. Our goal is to get you funded quickly at the best possible rate.

Find out what rate you qualify for

Get a personalised rate quote based on your specific deal. Our team searches 130+ lenders to find the most competitive terms available.

Get a Quote Compare Rates

FAQs

Frequently asked questions

What is a bridging loan and when is it used?

A bridging loan is a short-term property-secured facility, usually 1-24 months, used to 'bridge' a funding gap - for example between buying a new property and selling an existing one, completing an auction purchase within 28 days, breaking a property chain, or funding works before refinancing onto a mortgage.

How much can I borrow on a bridging loan?

We arrange bridging from £25,000 up to £100m+. Typical LTVs are up to 75% on residential, 70% on commercial, and up to 80% on larger prime deals. Second-charge bridging is available up to around 65% LTV.

How fast can a bridging loan complete?

Straightforward cases can complete in 5-10 working days. Complex security, multiple parties, or additional diligence typically adds 1-2 weeks. Valuation and legal turnaround - not lender underwriting - usually drive the overall timeline.

What exit strategies do lenders accept?

The most common exits are (1) sale of the security property or another asset, (2) refinance onto a mortgage, and (3) receipt of expected funds (probate, business cash flow, drawdown of other finance). Lenders stress-test the exit alongside the loan.

What are typical bridging rates and fees?

Rates currently start from around 0.49% per month and rise based on risk, LTV and property type. Expect arrangement fees of 1-2%, valuation fees of £300-£1,500, and legal fees of £1,500-£3,000. Interest can be serviced monthly, retained upfront, or rolled up.

Related finance

Explore related pages

Other Doulton specialisms and lenders that commonly fit alongside this one. We always compare the full 130+ lender panel before recommending a deal.