Bridging Loan Rates in the UK – Compare Best Deals for 2025
Welcome to UK Property Finance, your trusted partner for securing competitive bridging loan rates in the UK. Whether you’re buying a new property, funding a renovation, or bridging a financial gap, our expert brokers connect you with tailored bridging finance solutions starting from 0.55% per month. Use our bridging loan calculator for an instant quote and discover how we can help you achieve your property goals fast.
What are bridging loan rates?
Bridging loan rates typically range from 0.55% to 1.5% per month, depending on factors such as loan size, property type, and your financial profile. Unlike traditional mortgages, bridging loans are short-term (usually 1–12 months) and charge interest monthly, making them ideal for quick property transactions or urgent funding needs.
At UK Property Finance, we work with a panel of trusted lenders to secure you the lowest bridging loan rates available, with terms that suit your circumstances. Rates can be fixed or variable, and interest is usually rolled up into the loan, meaning no monthly payments, just one lump-sum repayment when your exit strategy (e.g., property sale or refinance) is complete.
Current bridging loan rates for 2025
Here’s an overview of typical bridging loan rates based on common scenarios:
| Loan Type | Monthly Rate | Loan Term | LTV (Loan-to-Value) | Best For |
| Residential Bridging | 0.55%–0.85% | 1–12 months | Up to 75% | Homebuyers, property investors |
| Commercial Bridging | 0.75%–1.2% | 3–18 months | Up to 70% | Business owners, developers |
| Auction Finance | 0.65%–1.0% | 1–6 months | Up to 75% | Auction property purchases |
| Refurbishment Bridging | 0.7%–1.5% | 6–24 months | Up to 70% | Property renovations, flips |
Rates are indicative and subject to individual circumstances. Contact us for a personalised quote.
Factors that affect bridging loan rates
Understanding what influences your bridging loan rate can help you secure the best deal. Key factors include:
- Loan-to-value (LTV) ratio: Lower LTVs (e.g., borrowing less against the property’s value) often attracts lower rates.
- Property type: Residential properties typically have lower rates than commercial or mixed-use properties.
- Credit profile: While bridging loans are more flexible than mortgages, a strong credit history can reduce rates.
- Exit strategy: A clear repayment plan (e.g., selling a property or refinancing) reassures lenders, potentially lowering rates.
- Loan amount: Larger loans (e.g., £500,000+) may qualify for better rates due to economies of scale.
- Market conditions: Rates can fluctuate based on the Bank of England base rate and lender competition.
Our team at UK Property Finance negotiates with lenders to ensure you get the most competitive rate for your needs.
Bridging loan costs beyond interest rates
When budgeting for a bridging loan, consider additional costs:
- Arrangement fee: Typically 1–2% of the loan amount, covering setup costs.
- Valuation fee: £200–£1,000+ to determine the market value of the security.
- Legal fees: Both your own and the lender’s legal costs, usually £500–£2,000.
- Exit fee: Some lenders charge 1% or more upon repayment, although the majority of our deals have no exit fees.
- Broker fee: At UK Property Finance, we’re transparent about any fees, ensuring no surprises.
Use our bridging loan calculator to estimate your total borrowing costs, including interest and fees.
Example bridging loan repayment costs
Here’s a sample calculation for a £100,000 bridging loan over 12 months at 0.55% per month:
- Monthly Interest: £550
- Total Interest (12 months): £6,600
- Arrangement Fee (2%): £2,000
- Valuation Fee: £500
- Legal Fees: £1,000
- Total Cost: £10,100 (assuming no exit fee)
This is an example. Your costs will vary based on loan terms and lender. Get a free quote today!
Why choose UK Property Finance for bridging loans?
- Market-leading rates: Access rates from 55% per month through our extensive lender network.
- Fast funding: Loans arranged in as little as 3 days for urgent needs.
- Tailored solutions: From £20,000 to £millions, we cater to all property types and circumstances.
- Expert guidance: Our FCA-regulated brokers provide unbiased advice to save you time and money.
- Application fees – no application fees
- Rated excellent: 5-star reviews on Trustpilot for our transparent, client-focused service.
Contact UK Property Finance today
Ready to secure a competitive bridging loan? Our expert team is here to guide you every step of the way. Whether you’re a homeowner, investor, or developer, we’ll find the best bridging loan rates to suit your needs. Use our bridging loan calculator.