Commercial Bridging Loan Rates 2026 — Updated October 2026
- Prime commercial — best case
- From 0.75%/monthPrime commercial — best case
- Standard commercial range
- 0.95%–1.50%Standard commercial range
- Maximum for most commercial lenders
- Up to 70% LTVMaximum for most commercial lenders
- Last updated
- October 2026Last updated
Commercial bridging loan rates in 2026 run from 0.75% per month for prime commercial assets to 2.0%+ per month for complex or secondary assets. The range is wider than residential bridging because commercial property carries more variable risk — asset quality, covenant, location, and the exit (sale or refinance to commercial mortgage) all significantly affect where the rate lands.
Commercial Bridging Rates by Asset Type — October 2026
Swipe the table sideways to see every column.
| Asset type | Rate range (per month) | Max LTV | Notes |
|---|---|---|---|
| Prime office / retail (London/SE) | 0.75%–1.00% | 65%–70% | Strong tenant covenant, long unexpired lease. Prime location. |
| Standard office / retail | 0.95%–1.25% | 60%–65% | Good covenant, reasonable lease length. Regional locations. |
| Industrial / warehouse | 0.85%–1.15% | 65%–70% | Strong demand — industrial rates often compare favourably to retail. |
| Mixed-use (residential above commercial) | 0.95%–1.35% | 60%–65% | Assessed partly on residential and partly on commercial metrics. |
| Semi-commercial / retail parade | 1.00%–1.50% | 55%–65% | Multiple tenants, shorter leases — higher complexity. |
| Secondary / vacant commercial | 1.25%–2.00%+ | 50%–60% | Vacant possession or weak covenant significantly widens rate. |
| Land with commercial planning | 1.50%–2.50%+ | 50%–55% of GDV | Development land — priced on GDV basis not current value. |
What determines your rate
Asset quality and location
Prime, well-let commercial assets in liquid markets (London, major regional cities) access the sharpest rates. Secondary locations, vacant properties, and unusual asset types push rates up.
Tenant covenant and lease
A long-let property with a strong covenant (FTSE 100 tenant, government occupier) is significantly lower risk than a short lease or vacancy. Lenders assess unexpired lease term carefully.
Exit strategy
Commercial exits are typically a commercial mortgage refinance or a sale. Both require evidence — a mortgage in principle from a commercial lender or an agreed sale will improve the rate offered.
LTV
Commercial lenders cap LTV more conservatively than residential — 65%–70% is typically the ceiling. Above this, the rate steps up sharply or lenders decline.
Planning status
A change of use application or outstanding planning condition adds risk and cost. Resolved planning significantly improves pricing.
Worked cost example
- Rate
- 1.10%/month (standard commercial band)
- Arrangement fee (1.5%)
- £12,000
- Monthly interest (rolled)
- £8,800/month
- Total interest (9 months, compounded)
- £82,776
- Exit fee (1%)
- £8,000
- Legal and valuation fees (approx)
- £4,000
- TOTAL COST OF BORROWING
- approximately £106,776
Scenario: £800,000 commercial bridging loan on a retail unit, 60% LTV (£1.33m property), 9-month term, commercial mortgage refinance exit
As % of loan: 13.3% for 9 months — underscores why speed of exit matters significantly in commercial bridging.
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
- Commercial 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 commercial bridging loan more expensive than a residential bridge?
Yes — typically by 0.20%–0.50% per month on comparable deals. This reflects the lower liquidity of commercial assets compared to residential property, greater variability in value, and the more complex exit (commercial mortgage or sale to investment buyer versus residential mortgage or residential sale).
Can I bridge a mixed-use property?
Yes — mixed-use properties (retail or office below with residential flats above) are bridged regularly. The assessment typically considers both the residential and commercial components separately, with the overall rate reflecting the relative proportion and risk of each.
What is the maximum LTV for a commercial bridge?
Most specialist commercial bridging lenders cap at 65%–70% LTV for well-let commercial assets. Vacant or secondary assets typically see caps of 55%–65%. A second charge commercial bridge would sit above these thresholds and is priced accordingly.
Can I use a commercial bridge to buy land?
Yes — land bridges are available from specialist lenders. Land without planning permission is priced at the highest rates (2%+/month) and the most conservative LTV (typically 50% or less of current value). Land with planning permission in place is more fundable at better rates.
How long can a commercial bridge run?
Most commercial bridges are structured for 6–18 months. Some specialist lenders extend to 24 months for complex transactions. Longer-term commercial finance (3+ years) is more efficiently funded through a commercial mortgage.
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