Bridging Loan Interest Rates UK
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Below is a quick guide to bridging loan rates by security type:
| Bridging loan type | Maximum LTV | Rates From |
|---|---|---|
| Regulated bridging loans | 75% | 0.55% per month |
| Unregulated bridging loans | 90% | 0.35% per month |
| Semi-commercial | 75% | 0.7% per month |
| Commercial bridging loans | 70% | 0.75% per month |
| Development exit finance | 80% | 0.35% per month |
| Land | 65% | 0.96% per month |
| Property refurbishment finance | 90% | 0.35% per month |
Average Interest Rates for 2026
As may be clear from the above table, average interest rates must be looked at through the lens of the type of bridging loan you require.
Here is a breakdown:
Average rates for regulated bridging in 2026
While rates for these loans start at 0.55% per month, the average rate that borrowers end up paying is 0.7%. This is down to a variety of factors, which we will explain in the next section.
It is important to understand average rates as well as the best rates, as this will give you a better understanding of the market and your likely costs.
Average rates for unregulated bridging in 2026
Unregulated bridging rates start from an excellent 0.35%, but the average borrower pays, a still historically low, 0.7% per month for this type of loan.
Again, the strongest applications can still benefit from lower rates, but it’s important to offer a balanced insight into realistic bridging loan costs.
Average rates for semi-commercial loans in 2026
Semi-commercial borrowing comes in with slightly higher average rates than residential borrowing, with the average rate being 0.85%.
This is down to the fact that semi-commercial property is slightly less liquid than residential, hence the slight increase in pricing due to the slightly higher risk to the lender.
Average commercial bridging rates in 2026
Commercial borrowing costs an average of 0.95% per month in 2026. This follows the same theory as semi-commercial property loans.
Average development exit finance rates in 2026
Development exit finance is used to refinance development finance facilities to release equity and allow time for the properties to sell.
Average rates are around 0.7% per month, although this is highly variable. Larger loans and those at a low loan to value tend to cost less, while those used to release the maximum equity tend to come in at a slightly higher rate.
Average rates for bridging on land in 2026
Bridging loan rates for loans secured against land cost an average of 1.05% per month in 2026.
Land is a higher risk proposition for lenders as it is less liquid, with a lower number of viable buyers should a quick sale be required.
That said, a land acquisition can be highly profitable, so the cost of borrowing is often counteracted by the potential of the transaction.
Average property refurbishment finance rates in 2026
Property refurbishment is another highly profitable transaction type. Average rates for this type of loan are 0.7% per month. Many borrowers do qualify for rates below this level however, with the market leading 0.35% per month rate being available all the way up to 80% LTV.
Factors That Influence Your Rate
The key factors that impact your rate are:
Loan size
Each lender has their own minimum and maximum loan size. For any very small loans, the choice of lender may be slightly limited and result in a higher interest rate.
Larger loans over £1,000,000 tend to be much more competitive, with lenders often lowering rates to try to win the loan.
The rates quoted in this article are based on an average loan, between £75,000 and £1,000,000.
Loan to value
Loan to value is directly linked to risk for a lender, and is therefore a key driver in determining the interest rate that they charge.
Higher loan to value will mean higher risk and a higher interest rate. Conversely, loans below 50% loan to value tend to secure the best deals.
Security location
Properties in locations that are less liquid, with little predictable demand may see their choice of lender decrease and their interest rate increase.
Security type
As mentioned above, the type of property used as security for the loan is a key driver in pricing.
Exit strategy
Exit strategy – how you plan to repay the loan can also impact pricing. Where the exit is straightforward, such as sale of the security property or refinance to a new loan, almost all lenders will be comfortable.
For more obscure approaches, such as the sale of another property or cashing in an external investment, some lenders may be uncomfortable, leaving you with less choice.
Speed required
Where a loan must be completed extremely quickly, this may impact your interest rate. This is because not every lender can complete loans in tight deadlines, again, leaving you with a reduced pool of lenders to choose from.
