Bridging Loan Rates 2026 — Updated September 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 30 July 2026)
- 3.75%BoE base rate (held 30 July 2026)
- Last updated
- September 2026Last updated
UK bridging loan rates in 2026 start from 0.55% per month for prime residential cases (sub-55% LTV, clean credit, confirmed exit) and run to 1.5%+ per month for complex or high-LTV scenarios. The advertised "from" rate applies only in the best possible circumstances. Most real-world cases price between 0.65% and 0.95% per month — the average secured in Q1 2026 was 0.82%/month (MT Finance / Bridging Trends data). This guide explains where you are likely to land — and why.
Bridging Loan Rates by Band — September 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)
- £23,044
- Exit fee (1%)
- £5,000
- Legal and valuation fees (approx)
- £2,500
- TOTAL COST OF BORROWING
- approximately £40,544
- 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.
Get a rate for your own case
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 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.
Rate context and outlook
The Bank of England held its base rate at 3.75% on 30 July 2026 — the fifth consecutive hold — in a divided 6-3 vote. Three Monetary Policy Committee members (Megan Greene, Catherine Mann, and Huw Pill) voted to raise the rate to 4.0%, citing concern about persistent energy price inflation from the Middle East conflict. The next decision is on 17 September 2026. Markets price a 72% probability of hold (SONIA futures, 17 August 2026), but the growing hawkish minority has raised the tail risk of a rate increase.
Bridging rates are set by swap rates and lender funding costs rather than the BoE base rate directly. Elevated swap rates from Middle East energy price pressures have kept standard band bridging rates sticky in the 0.70%–0.90% range through Q3 2026. The July 2026 MPC vote was 6-3 to hold, with three members (Greene, Mann, Pill) voting to raise rates — the most hawkish MPC split since the tightening cycle ended. This removes the near-term expectation of rate cuts that was present in August, and the Middle East energy price pressures continue to keep swap rates elevated. Bridging rates are expected to remain sticky in the standard 0.65%–0.95% band through Q4 2026.
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 average rate secured in Q1 2026 was 0.82%/month (Bridging Trends). Anything above 1% per month should prompt a conversation about whether the deal structure can be improved — higher 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.
Where this applies
Talk to us about
Get a personalised rate comparison for your case
Independent whole-of-market advice · FCA No. 814533