Bridging Loan Extension & Default Rates 2026 — Updated October 2026
- Default rate vs contract rate
- Often doubleDefault rate vs contract rate
- Typical extension fee
- 1%+Typical extension fee
- Average term
- 12 monthsAverage term
- Last updated
- October 2026Last updated
If a bridge runs past its term, lenders can charge default interest — often around double the contracted rate — plus fees. Most lenders will extend a loan with a credible exit, but the cheapest fix is refinancing before the term ends.
Bridging Loan Extension & Default Rates — October 2026
Swipe the table sideways to see every column.
| Situation | Typical cost |
|---|---|
| Agreed extension before expiry | Extension fee c.1% of the loan; rate may be re-priced |
| Loan expires with no agreement | Default interest, often around 2× the contract rate |
| Refinance to a new bridge | New arrangement fee, often cheaper than default |
What a bridging loan overrun costs: worked example
- Interest at the contract rate (0.8% a month)
- £6,426
- Interest at a 1.6% default rate
- £12,902
- Extension fee
- £4,000
£400,000 bridge at 0.8% a month overruns by 2 months
Terms the same working day — no upfront fees on loans over £1m
The figures above are indicative and describe the best case. Send your own scenario and we will come back the same working day with terms from the lenders that actually fit it.
- Enquiry type
- Bridging Loan
- About
- Bridging Extension Rates
No upfront fees on loans over £1m.
Enough detail to price it is the amount, the security, the purpose and how you plan to repay. The rest we can fill in on a call.
Whole of market · 130+ lenders · FCA 814533 · Same working day response
Rate context and outlook
Bank Rate is 3.75% after the 17 September hold, with three MPC votes for a rise and the next decision on 5 November. Bridging pricing follows lender funding costs and swap rates rather than Bank Rate directly.
The latest Bridging Trends average was 0.81% per month, with average LTV of 55% and completion in 46 days. We expect standard-band pricing to hold in the 0.65%–0.95% range through Q4 2026, with upward pressure on the most competitive prime products if swap rates stay high.
Reviewed by David Doulton, Director, Doulton Bridging Finance — over 20 years in property finance. Last reviewed 1 October 2026. Doulton Money Ltd t/a Doulton Bridging Finance, FCA No. 814533.
Frequently asked questions
When should I raise an extension?
At least two months before expiry.
Can I refinance to another lender?
Yes — a refinance bridge is common where the exit is delayed.
Will an overrun affect my credit file?
It can if the lender records a default; agreeing an extension before expiry avoids this.
Can the lender repossess?
In the last resort, yes — which is why a back-up exit matters.
How much does a refinance bridge cost?
A new arrangement fee of 1%–2% plus legal and valuation, often less than two months of default interest.
How quickly can a bridging loan complete?
Typically 2–4 weeks; the latest market average is 46 days. Urgent cases with clean title and a quick valuation can complete in 7–10 working days.
What fees come on top of the interest rate?
An arrangement fee of 1%–2%, valuation of about £500–£1,500, legal fees of £1,500–£3,000 for both sides, and on some products an exit fee of up to 1%.
Can the interest be rolled up?
Yes. Most bridges roll interest into the loan and repay it at the end, so there are no monthly payments; serviced and retained interest are also available.
What exit strategies do lenders accept?
A sale, a refinance to a mortgage, or other funds such as an inheritance or business sale. The stronger the evidence, the better the rate.
Can I get a bridging loan with bad credit?
Often, yes. Lenders focus on the property and exit; recent defaults or CCJs usually move you up a pricing band rather than rule you out.
Is a bridging loan regulated?
Only when it is secured on a home you or your family live in or will live in. Investment and business bridges are unregulated.
Where this applies
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Independent whole-of-market advice · FCA No. 814533