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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- About
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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
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.
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