Bridging Loan Rates 2026 — Updated October 2026
- Prime residential, sub-55% LTV — best case only
- From 0.55%/monthPrime residential, sub-55% LTV — best case only
- Typical range for standard deals
- 0.65%–0.95%Typical range for standard deals
- BoE base rate (held 17 Sep 2026)
- 3.75%BoE base rate (held 17 Sep 2026)
- Last updated
- October 2026Last updated
UK bridging loan rates start from 0.55% per month for prime residential cases (under 55% LTV, clean credit, confirmed exit) and run to 1.5%+ for complex or high-LTV cases. The latest market average is 0.81% per month (Bridging Trends). Most real cases price between 0.65% and 0.95%.
Bridging Loan Rates by Band — October 2026
Swipe the table sideways to see every column.
| Band | Rate (per month) | Typical scenario | Annual equivalent (approx) |
|---|---|---|---|
| Prime | 0.55%–0.65% | Sub-55% LTV, prime London/SE residential, exchanged sale exit, clean credit. Best possible scenario. | 6.6%–7.8% |
| Prime–Standard | 0.65%–0.75% | Sub-65% LTV, prime/good residential, clear evidenced exit (mortgage offer or sold STC), clean credit. | 7.8%–9.0% |
| Standard | 0.75%–0.95% | Standard residential or light commercial, 65%–75% LTV, good credit, clear but not locked exit. | 9.0%–11.4% |
| Complex | 0.95%–1.50% | Adverse credit, non-standard security, 75%–80% LTV, development land, commercial conversions. | 11.4%–18.0% |
| Commercial bridging | 0.75%–2.00% | Office, retail, industrial, mixed-use, semi-commercial — rate varies by asset quality and LTV. | 9.0%–24.0% |
| Second charge / mezzanine | 1.20%–2.50% | Second charge position, stretched LTV above 75%, subordinated to senior debt. | 14.4%–30.0% |
What determines your rate
Loan to value (LTV)
The single biggest rate driver. Sub-60% unlocks the sharpest pricing. Above 70%–75% moves into specialist territory where fewer lenders compete and rates step up.
Property type and condition
Standard freehold residential attracts the widest lender pool and lowest rates. HMOs, semi-commercial, and development sites narrow the pool. Condition matters — uninhabitable properties are priced at a premium.
Exit strategy
A confirmed exit (exchanged sale contract, issued mortgage offer) can reduce the rate versus an open bridge where exit is plausible but not evidenced. Tell your broker your exit before anything goes to a lender.
Credit profile
Clean credit accesses the prime band. County court judgements, defaults, or recent missed payments push into the standard or complex band regardless of LTV.
Loan size
Above £1m, lenders compete more aggressively. Below £100,000, rates run proportionally higher. The sharpest pricing sits broadly in the £150,000–£3m range on a clean deal.
Borrower experience
First-time bridging borrowers typically pay more. Experienced investors with a track record — especially repeat lender relationships — access better pricing.
Worked cost example
- Rate
- 0.75%/month (standard-prime band)
- Arrangement fee (2%)
- £10,000
- Monthly interest (rolled)
- £3,750/month
- Total interest (6 months, compounded)
- £22,926
- Exit fee (1%)
- £5,000
- Legal and valuation fees (approx)
- £2,500
- TOTAL COST OF BORROWING
- approximately £40,426
- As % of loan
- 8.1% — equivalent to a gross annual cost of 16.2%
Scenario: £500,000 bridging loan, 65% LTV (£769,000 property), prime residential, 6-month term, sold STC exit
This illustrates why comparing monthly rate alone is misleading. Total cost is what matters.
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.
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- Bridging Loan
- About
- Bridging 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.
Light vs Heavy Refurbishment Rates
| Type | Rate Range (pm) | Max LTV | Definition |
|---|---|---|---|
| [Light refurbishment](/light-refurbishment-bridging) | 0.65% – 0.90% | 75% | Cosmetic works, no structural changes, no planning required |
| Medium refurbishment | 0.80% – 1.10% | 70% | Some structural works, permitted development |
| [Heavy refurbishment](/heavy-refurbishment-bridging) | 0.95% – 1.40% | 65–70% | Full structural works, planning permission, change of use |
Residential vs Commercial Bridging Rates
| Security Type | Indicative Rate (pm) | Max LTV | Notes |
|---|---|---|---|
| Residential property | 0.55% – 1.00% | 75% | Best rates, most lenders |
| Semi-commercial / mixed use | 0.75% – 1.20% | 65–70% | Fewer lenders, split valuations |
| Commercial property | 0.75% – 1.40% | 60–65% | Sector matters; industrial better than retail |
| [Land](/land-bridging-loan) (with planning) | 0.90% – 1.35% | 55–60% | Planning consent essential for most lenders |
| Land (without planning) | 1.10% – 1.50% | 45–55% | Specialist lenders only |
What Is Driving Rate Changes in 2026?
| Lender Competition | The bridging market has seen strong competition between established and newer lenders throughout 2026, particularly at lower LTV tiers. This competitive pressure has kept rates keen for quality deals. |
|---|---|
| Investor Appetite | Institutional investor appetite for bridging loan portfolios has remained strong. This provides lenders with reliable funding at reasonable cost, which is passed on in the rates they offer to borrowers. |
| Deal Volume and Quality | A robust pipeline of quality deals from experienced borrowers with clear exits encourages lenders to price competitively. Lenders want to deploy capital, particularly at sub-70% LTV where their risk is well covered. |
How to Get the Best Bridging Rate Today
- 1
Keep your LTV as low as possible
LTV is the single biggest rate driver. If you can bring additional equity or reduce the loan size, you may move into a meaningfully cheaper pricing tier. A drop from 70% to 65% LTV can save 0.10–0.15%/mo.
- 2
Have a clear, evidenced exit strategy
A sale agreed (with a buyer named and solicitors instructed) or a mortgage in principle in hand gives lenders confidence to price more keenly. Speculative exits - "we will sell it eventually" - attract higher rates to compensate for uncertainty.
- 3
Maintain clean credit
CCJs, defaults, and recent missed payments push you into higher-priced tiers. If your credit has issues, some lenders specialise in adverse credit bridging - but you will pay a premium of 0.20–0.50%/mo for it.
- 4
Use a specialist whole-of-market broker
A broker with direct relationships across 130+ lenders can match your deal to the lender most likely to price it keenly. Many lenders offer preferential rates for business submitted through brokers they know and trust. Going direct to a single lender rarely achieves the market's best price.
- 5
Package your application well
A well-packaged submission - clear property details, confirmed exit, professional valuation, and relevant financial information - gets to the front of a lender's underwriting queue and reduces the risk of late-stage queries that delay drawdown and increase cost.
Frequently asked questions
What is a good bridging loan rate in 2026?
A rate of 0.65%–0.75% per month is strong in 2026 for a standard residential deal at 65%–70% LTV with a clear exit. Prime deals at sub-60% LTV with a confirmed exit can access 0.55%–0.65% — the latest market average is 0.81%/month (Bridging Trends). Anything above 1% per month should prompt a conversation about whether the deal structure can be improved — lower LTV, better exit evidence, or a different lender — before proceeding.
Why is my rate higher than the "from" rates I see advertised?
Advertised "from" rates (0.55%/month) apply only in the best possible scenario: sub-55% LTV, prime residential property in a liquid location, a confirmed exit (exchanged sale or issued mortgage offer), and clean credit. Most real-world deals land in the 0.65%–0.95% range once actual deal characteristics are assessed. The "from" rate is a floor, not an average.
What fees are charged on top of the interest rate?
The main fees are: arrangement fee (typically 1%–2% of the loan), exit fee (0%–1% on some lenders), legal fees (your solicitor plus lender's solicitor, typically £1,500–£3,000 combined), and valuation (typically £500–£1,500 depending on property). Some lenders offer "no exit fee" products but offset this with a slightly higher rate. Always model the total cost — not just the monthly rate.
Can I negotiate my bridging loan rate?
Yes — bridging rates are more negotiable than standard mortgages, particularly on larger loans and with experienced borrowers. A specialist broker negotiates on your behalf across multiple lenders simultaneously. On a £1m+ loan, 0.1%/month difference over 6 months is £6,000 — the negotiation is worth having.
How quickly do bridging rates change?
Bridging rates can change weekly, particularly in volatile swap rate environments. A rate agreed in principle can change before a formal offer is issued if market conditions move. Most lenders hold a rate for 24–48 hours from a formal DIP. Once a formal offer is issued, the rate is locked for the offer validity period — typically 30–90 days.
Are bridging loan rates quoted monthly or annually?
Rates are quoted monthly. To compare with annual products, multiply by 12 - though note this is a simplification; rolled-up interest compounds. A 0.75% monthly rate is approximately 9% annually on a simple basis, but the effective cost will depend on how long you actually hold the loan.
Is there a difference between retained and rolled-up interest?
Yes. Retained interest is deducted upfront from the loan advance - you receive less cash but pay no monthly payments. Rolled-up interest is added to the loan balance and paid at exit - you receive the full advance but the loan grows. Retained is simpler for planning purposes; rolled-up preserves cash flow.
What is a second charge bridging loan and does it cost more?
A second charge bridge sits behind an existing mortgage on the same property. It is higher risk for the lender (lower priority in the event of sale) so rates are typically 0.15–0.30% per month higher than equivalent first charge lending. The first charge lender's consent is usually required.
How does the arrangement fee affect the total cost?
A typical arrangement fee of 1–2% of the loan significantly increases the effective cost on short-term loans. On a 3-month bridge, a 2% fee adds approximately 0.67% per month to the effective rate. Always calculate the total cost of funds - rate plus all fees - rather than comparing headline rates alone.
Is it better to go directly to a bridging lender or use a broker?
For most borrowers, a specialist broker achieves a better outcome than going direct. Brokers know each lender's appetite and credit criteria, can match your deal to the most suitable lender, often access exclusive or preferential rates, and manage the process from enquiry to drawdown - including any complications that arise during underwriting.
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.
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Independent whole-of-market advice · FCA No. 814533