Bridging Loan Rates

Find The Best Deal

Whether you’re buying a new property, funding a renovation, or bridging a gap until your next sale, our guide to bridging loan rates will help you make an informed decision. Explore competitive rates, understand what affects them, and discover how to get the best deal tailored to your needs.

What are bridging loan rates?

Bridging loan rates typically range from 0.5% to 1.5% per month, depending on various factors like loan size, property type, and your financial profile. Unlike traditional mortgages, these rates are calculated monthly due to the short-term nature of a bridging loan, which usually last from a few weeks to 12 months. This structure allows flexibility for borrowers needing quick funds, with the option to repay early, mostly without penalties.

For example, a loan with a 0.7% monthly rate translates to an annual equivalent of around 8.4%, though you’ll rarely pay this full amount since bridging loans are designed for short-term use. Our goal at bridgingfinance.com is to connect you with lenders offering rates starting from as low as 0.5% per month.

Factors that influence bridging loan rates

To secure the best rate, it’s important to understand what lenders consider:

• Loan-to-value (LTV) ratio: The lower the LTV (the loan amount compared to the property’s value), the lower the rate. For instance, an LTV below 60% often attracts rates closer to 0.5%, while higher LTVs may push rates toward 1%.
• Property type: Residential properties typically secure lower rates than commercial or mixed-use properties due to perceived lower risk.
• Exit strategy: A clear plan to repay the loan, like selling a property or refinancing, reassures lenders and can reduce rates.
• Credit profile: While bridging loans are less dependent on credit scores than mortgages, a strong credit history can still lower your rate.
• Loan size and term: Larger loans or shorter terms may qualify for better rates, as lenders see them as lower risk or quicker to recover.
• Location: Properties in urban areas may secure lower rates compared to rural ones, reflecting market demand.

By working with bridgingfinance.com, you gain access to lenders who assess these factors to offer you the most competitive rates available.

Typical costs beyond interest rates

Bridging loans like traditional mortgages come with additional costs that impact the total expense. Here’s what to expect:

• Arrangement fee: Usually 1-2% of the loan amount, covering setup costs. Some lenders offer deals with no arrangement fees for larger loans.
• Valuation fee: Required to assess the property’s market value, typically ranging from £300 to £1,000, depending on the property’s size and location.
• Legal fees: Both you and the lender will incur legal costs, often starting at £500, to finalise the loan agreement.
• Exit fee: Many modern bridging loans, especially those we use, have no exit fees, saving you money when repaying early.

Our online bridging loan calculator lets you input these factors to estimate your total costs, ensuring transparency before you apply.

Why choose us for your bridge loan?

We make finding the right bridging loan simple and stress-free:

• Market-leading rates: Access loans with rates from 0.5% per month through our network of trusted FCA-regulated lenders.
• Fast approvals: Get a decision in principle within hours and funds in as little as 3 days for urgent needs.
• Tailored solutions: Whether you’re a homeowner, investor, or developer, we match you with loans that fit your unique circumstances.
• No upfront fees: Start your application with no obligation and full transparency on costs.
• Expert guidance: Our team provides free advice to help you understand rates, fees, and repayment options.

How to get the best bridging loan rate

Follow these steps to secure a competitive rate:

1. Compare lenders: Use our platform to compare rates from multiple lenders instantly.
2. Lower your LTV: Offer more equity or additional security to reduce the loan-to-value ratio.
3. Prepare your exit strategy: Show lenders a clear repayment plan, like a property sale or refinance, to qualify for lower rates.
4. Check your credit: While not always critical, improving your credit score can help.
5. Work with a broker: Our experts at bridgingfinance.com negotiate on your behalf to unlock exclusive deals.

Example bridging loan rates

Here’s a quick look at sample costs for a £100,000 loan over 6 months:

Rate: 0.6% per month

• Monthly interest: £600
• Total interest: £3,600
• Arrangement fee (2%): £2,000
• Total cost (excluding legal/valuation fees): £5,600

Rate: 1% per month

• Monthly interest: £1,000
• Total interest: £6,000
• Arrangement fee (2%): £2,000
• Total cost (excluding legal/valuation fees): £8,000

These examples highlight how even small rate differences impact costs. Use our calculator to get a personalised quote today.

Ready to find your bridging loan?

At bridgingfinance.com, we’re committed to helping you secure a bridging loan with the lowest possible rate. Whether you’re bridging a property purchase, funding a renovation, or seizing an investment opportunity, our quick and transparent process ensures you get funds when you need them.

Get started now with our free bridging loan calculator or contact our team for a no-obligation quote. Let us help you bridge the gap to your next big move!