Commercial-to-Residential Conversion Rates 2026 — Updated October 2026
- Conversion bridging
- From 0.85%/moConversion bridging
- Of GDV
- Up to 65%–70%Of GDV
- Typical term
- 12–18 monthsTypical term
- Last updated
- October 2026Last updated
Converting offices, shops or barns into homes is funded with heavy refurbishment bridging or light development finance. In October 2026 rates start from about 0.85% a month, with lenders advancing against the finished value (GDV) and releasing works money in stages.
Commercial to Residential Conversion Rates — October 2026
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| Route | Indicative rate | Leverage |
|---|---|---|
| Permitted development, simple scheme | 0.85%–1.10%/mo | up to 65% GDV |
| Full planning, heavier works | 0.95%–1.20%/mo | up to 70% GDV |
| Development finance (larger schemes) | from 8.8%–9.5% p.a. | 60%–65% LTGDV |
What conversion bridging costs: worked example
- Interest
- £108,134
- Arrangement fee (2%)
- £18,000
- Exit fee (1%)
- £9,000
- Total
- c.£135,134
£900,000 for 12 months at 0.95% a month, rolled
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
- Conversion 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
Can I get finance under permitted development rights?
Yes, once prior approval is granted; lenders check it carefully.
Is the loan based on purchase price or GDV?
Day-one funds are based on current value; works funding and the overall cap on GDV.
What exit do lenders expect?
Unit sales or a refinance to buy-to-let or a development exit bridge.
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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Independent whole-of-market advice · FCA No. 814533