A Guide To Bridging Loan Rates & Fees

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Home » Bridging Loans » Bridging Loan Rates & Fees


Bridging loan rates are lower than ever and with more and more entrants to the market, competition amongst lenders continues to grow. Bridging finance interest rates can vary widely depending on your situation, with several factors affecting the cost of bridging finance, such as the type of security and the loan to value requested.

Read on to learn more about available rates and, for more information, head over to our guides section or browse our available product options. If you’d prefer to speak with an expert simply fill in the form.


To give an accurate picture, bridge loan rates must be broken down by the type of security offered. Commercial property rates are higher than those secured against residential, and loans against land tend to command the highest rates.

Regardless of the type of security offered, our team of specialist brokers are on hand to help you secure the lowest rates.

Residential bridging finance rates start from 0.44%, although this rate is only available for applications secured against residential property and up to a maximum of 55% Loan to Value (LTV). Due to the individual pricing of loans and the number of lenders out there, it is hard to quote an average rate. In general, most loans will fall between 0.44% and 1.25% per month.

SecurityMax LTVRates From
Residential (Unregulated)80%0.44%
Residential (Regulated)70%0.49%
Land with Planning65%0.75%
Land Without Planning50%1.00%

Commercial bridging lenders tend to price each loan on risk, they will look at the type of property, location and you as the client. The best commercial bridging rates usually start at around 0.65% per month.

As a guide, an interest rate of 1% per month is a good benchmark. For a riskier deal, such as an unusual property or a client with heavy adverse credit, rates will be around 1% – 1.75% per month.

Finally, loans against land will usually be priced between 0.9%-1.25% per month. As each application is judged on its own merits, we do sometimes secure lower than standard rates if the risk is low for the lender.

To talk through your situation and find out exactly what rate you can expect to pay, call us now on 01922 620008.


Bridging finance applications are usually subject to several different fees, which can become confusing. They can usually be broken down into the following:

Lender Arrangement Fee

This fee is payable to the lender for arranging the loan. Often, this fee is added to the loan, meaning you don’t have to pay the money upfront. Some lenders will take part of the arrangement fee on offer to signal commitment from the applicant. Lender arrangement fees are usually between 1-2% of the loan amount.

Broker Fee

This is payable to your broker for arranging the finance. Most brokers charge a fee of 1% or more on completion of the loan, this can often be added to or deducted from the loan. At ABC Finance Ltd we don’t usually charge broker fees for arranging bridging finance.

Broker Administration Fee

Brokers often charge an upfront fee for processing your application. This can’t be added to the loan and must be paid upfront. We never charge upfront fees for processing your application.

Valuation Fee

The valuation fee is payable for the undertaking of a basic survey of the security property. The report is usually quite basic and covers only the value of the property, some structural and demand issues and whether the property is suitable security for the loan. The fee is usually payable early in the application process. We always try to ensure the lender is otherwise happy with the application before asking for the valuation fee to be paid.

Legal Fees

Lenders usually require separate legal representation, which is paid for by the applicant. Some lenders will accept dual representation (use of the same solicitor for both sides), which can save time and money.

Exit Fee

Some lenders charge an exit fee, usually either equal to one month’s interest, or 1-2%. Exit fees are charged on repayment of the loan and are usually added to the redemption figure.

Factors That Affect Bridging Loan Rates

There are several factors that affect the bridging loan rate charged, including the following:

  • Type of property used as security
  • Loan to value
  • Purpose of the loan
  • Whether the loan is first or second charge
  • Location of the security
  • Loan size
  • Condition of the security property
  • Term
  • Credit history

Always Look at Total Cost – Not Just Interest Rate

Bridging loans will often be advertised with ‘rates from…’ – this will generally be a low headline rate. Although there is an element of salesmanship to this tactic, it is the only viable approach due to the wide range of products on offer and the bespoke pricing structure of bridging finance lenders.

To be sure of finding the best deal, you would have to compare options from various lenders either yourself or through a broker. Obviously, contacting every lender yourself would be time-consuming, meaning you could discuss your needs with only a few lenders. Therefore, many people engage an experienced broker to do the legwork for them.

Securing a low-interest rate tends to be the #1 request by clients looking for bridging finance, but it is important to see the bigger picture.

The difference in fees charged by different lenders can be vast. Many lenders will charge additional fees for things such as fund management, redemption or administrative fees. If you’re determined to save money, a comparison of all costs, not just the interest rate, is crucial.


About The Author

This content was produced by our Commercial Lending Director, Gary Hemming. Gary has over 15 years’ experience in financial services and specialises in bridging loans, commercial mortgages, development finance and business loans. He is widely respected in his field and regularly provides expert commentary for specialist trade publications, specialist business press as well as local and national press.

Gary Hemming CeMAP CeFA CeRGI CSP  -  
Commercial Lending Director

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