Chain Break Bridging Rates 2026 — Updated October 2026
- closed bridge, sale exchanged
- From 0.55%/moclosed bridge, sale exchanged
- typical open bridge
- 0.65%–0.90%typical open bridge
- share of bridging now regulated
- 48%share of bridging now regulated
- Last updated
- October 2026Last updated
Chain break bridging lets you complete your purchase before your sale does. In October 2026 rates start from 0.55% a month when your sale has exchanged (a closed bridge) and typically run 0.65%–0.90% when the sale is agreed but not exchanged. Chain breaks are now joint-largest use of bridging (18% of loans), and most are regulated because the property is your home.
Chain Break Bridging Loan Rates — October 2026
Swipe the table sideways to see every column.
| Scenario | Rate per month | Notes |
|---|---|---|
| Closed bridge — sale exchanged | 0.55%–0.75% | Exit date fixed; cheapest option |
| Open bridge — sale agreed | 0.65%–0.90% | Lender checks buyer, price and chain |
| Open bridge — not yet on market | 0.80%–1.10% | Valuation and marketing plan scrutinised |
| Regulated (your home) | usually +0.10%–0.25% | Full affordability and FCA process |
What moves chain break finance rates
Exit evidence
An exchanged contract beats a memorandum of sale.
Combined LTV
Your combined LTV across both properties.
Security on one or both homes
Whether the loan is secured on one or both homes.
Time to complete
Time to complete — regulated cases take longer.
What a chain break bridging loan costs: worked example
- Interest (6 months, rolled)
- £16,048
- Arrangement fee 2%
- £7,000
- Legal and valuation
- c.£2,500
- Total
- c.£25,548
£350,000 for 6 months at 0.75% a month, interest rolled.
Exchanging your sale first could move you to the closed-bridge band and save around £2,000.
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
- Chain Break 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.
Frequently asked questions
Is a chain break loan regulated?
Yes if it is secured on a home you or your family live in, or will live in. Regulated bridging takes longer and needs full affordability checks.
Can I borrow against both properties?
Yes. Many lenders take security over the new and old home, which lowers combined LTV and the rate.
What if my sale falls through?
Lenders expect a back-up exit, usually a remortgage. Agree it before you borrow.
How much can I borrow on a chain break bridge?
Usually up to 70%–75% of the combined value of the properties secured, including rolled-up interest and fees.
Is a chain break loan cheaper than losing the purchase?
Often. On the example above the bridge costs about £25,500; losing a purchase can mean abortive legal and survey costs, a higher price elsewhere, or both.
Do I need a mortgage offer on the new home?
Not always. If the bridge will be repaid from your sale, the lender focuses on that sale and your equity.
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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Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Think carefully before securing other debts against your home.
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Independent whole-of-market advice · FCA No. 814533