Bridging Loan Interest Rates London

Find the right rate for your bridging loan London finance options designed to meet your timeline and budget.

Competitive London Bridging Loan Rates from 0.44% PCM

1st Charge BTL

0.59% pcm up to 55% LTV
0.59% pcm up to 65% LTV
0.64% pcm up to 75% LTV
0.83% pcm up to 80% LTV
0.99% pcm up to 75% LTV with adverse credit

2nd & 3rd Charges

0.89% pcm up to 65%
1.1% pcm up to 75%
1.15% pcm up to 65% (no valuation required, or no 1st charge lender consent)
Formal offers following valuation

Commercial & Semi-Commercial

0.75% pcm up to 55% LTV
0.85% pcm up to 65% LTV
0.95% pcm up to 75% LTV

Development Finance

2% arrangement fee, rates from 0.71% pcm
Up to 70% of Gross Development Value and 100% of development costs, with up to 70% of purchase price

Our Lowest Development Finance Rates (Subject to Project Assessment)

PP	LTGDV	Min Loan	LTC	Arrangement Fee	Annual Interest Rate	Exit
70%	60%	£3m	80%	1%	6.5%	1.5%
70%	65%	£2m	80%	2.25%	8.0%	2%
70%	70%	£1m	85%	1.5%	10%	1.25%

Rates are indicative and subject to full assessment of the scheme, security, and exit.

What Do These Rates Include? (Terms & Conditions summary)

2% lender's arrangement fee
Interest: can be deducted from the loan or paid monthly
Legal fees: typically £3,000–£5,000 combined, both sides (varies by lender and loan size)
Valuation fees: from £400, depending on lender and property; AVM available up to 75% LTV
Admin fee: £495
Loan terms: 1 to 24 months
Quick funding: funds released in as little as 5 working days with our private lenders, subject to valuation access and your solicitor acting promptly

Fast Non-Status Bridging Loans

For quick decisions, lenders typically require:

Your name and address
Security property address
Purchase price or current valuation
Loan amount required

Lending decisions are based on property location, condition, and open market value. Most lenders will also require:

Solicitor fees (yours and theirs)
Formal documents (ID and proof of address)
For lenders offering the lowest rates: income, expenditure, and possibly past experience in property investment or development

Let’s talk about how we can help you…

Whether you’re looking for fast funding or need expert advice, we’re here to help. Reach out to us today and get started with a simple, hassle-free enquiry. Just click below to begin!

How to Secure the Lowest Bridging Loan Interest Rates in London

When you consider a bridging loan, especially for the short-term until the long-term solution is in place, the most important factor is the rate of interest. Fast, non-status bridging loan rates depend on the type of loan, how much you want to borrow, and the term. Rates typically run from 0.59% to 1.5% pcm over 1 to 24 months, and may be extended in certain circumstances.

Bridging loan lenders in the UK accept a wide range of property as security — houses, flats, shops, offices, commercial units, farmland and more. The loan can be secured against one property or several, held as first charge, second charge, commercial or semi-commercial. Below, we break down our rates by loan type. We arrange rates across residential investment, commercial, and semi-commercial bridging.

Understanding Bridging Loan Interest Rates: What You Need to Know

When you’re buying a property, it helps to understand bridging loan rates in case you need short-term finance to complete the purchase. But what can a bridging loan be used for? Here are some of the options.

Our bridging rates start from 0.59% pcm up to 55% LTV and rise with LTV and risk, up to around 1.5% pcm at 75% LTV. You can estimate your borrowing with our bridging loan calculator, and for larger schemes see our property development finance. Bridging can be secured against a range of assets including residential investment, commercial, and land.

what is the average interest rate on a bridge loan?

The average bridging loan interest rate in the UK is around 0.59% to 1% per calendar month for standard, lower-LTV cases, rising with higher LTV, adverse credit, or unusual security. Your exact rate depends on the property, the loan-to-value, and your exit strategy.

Key Factors That Influence Bridging Loan Interest Rates

Bridging Finance 4U works with a number of lending partners across the UK to source competitive bridging loan rates. Because rate is often the deciding factor, and lenders compete to offer the sharpest terms, the bridging rate you’re offered can also depend on other factors:

Which factors affect bridging loan interest rates the most?

Loan to Value: The Loan Value ratio describes the size of the loan you take out compared to the value of the property offered as security. When the borrower offers a greater value of equity, the risk to the lender decreases. Lower interest rates can be achieved through lower LTV value.
Type of Property: The bridging loan can be divided mainly based on the type of property offered for security: residential, semi-commercial and commercial. Since residential property offers the best security, the interest rates are usually lower than commercial property. Commercial and semi-commercial properties are a bit risky as the values can drop drastically in a short time.
Condition and Location of Property: Our lender panel offers short-term bridging against a wide range of property, including cases other lenders turn down. We arrange finance across the UK, though the monthly rate varies with the condition and location of the property.
Loan Term: The time duration for which you required funds also influences the rate of interest. The loan term can last up to 12 months, but in some cases, it may last up to 24 months where required.

How Bridging Loan Rates Work

When you’re buying a property, it can help to understand bridging loan rates in case you need short-term finance to complete the purchase. But what can a bridging loan be used for? Here are some of the options.

Uninhabitable Property

Some properties are uninhabitable and need significant work. If bought at auction, there’s usually a 28-day completion window, but a traditional mortgage often can’t be secured until the refurbishment is done. Bridging gives you the time to purchase the property, carry out the works, and then refinance onto a longer-term mortgage once it’s mortgageable.

How can property developers in London get the best bridging loan rates?

Bridging can be useful when a property developer wants to buy a property and land and then build. Splitting the title makes a traditional mortgage hard to obtain until the work is complete, so short-term finance bridges the gap. Bridging loan quotes vary, so it pays to work out what you need. The more information you give us up front, the better we can help.

It’s worth comparing rates across lenders, understanding fixed versus variable rates, and evaluating the terms of each loan against your circumstances to secure the most competitive rate. Bridging with adverse credit can be harder, as it carries more risk for the lender, but options are available.

Japanese Knotweed

Japanese knotweed can make a property difficult to mortgage. Mainstream lenders will often decline an application where knotweed is identified on or near the land, or will require evidence that it is being dealt with before they will lend. A bridging loan can give a buyer time to put a professional treatment plan in place, usually backed by an insurance-backed guarantee, and then refinance onto a standard mortgage once lenders are satisfied.

How can you find affordable bridging loan interest rates?

Bridging loan interest rates vary depending on the property, the loan to value, the strength of the exit and the lender’s view of the case. Interest is only part of the picture.

Borrowers should also budget for a lender arrangement fee of 2% of the gross loan, legal fees of typically £3,000 to £5,000, valuation fees, an administration fee of £495, and a telegraphic transfer charge levied by the lender.

An exit fee of 0% to 1% may apply on redemption, and a broker fee of 0% to 1% may be charged depending on the complexity of the case.

As a specialist bridging broker we compare terms across our lender panel so the total cost of borrowing, not just the headline rate, is what gets assessed. All figures should be confirmed in your illustration before you proceed.

Bridging Loan Interest Rates - FAQ's

What are current bridging loan interest rates in the UK?

Rates on our lender panel start from 0.59% per month. That is a starting figure, not a rate everyone will be offered. The rate you are quoted depends on the loan to value, the property type, the strength and credibility of your exit, your experience as a borrower and your credit profile. Most standard cases price above the entry rate.

Bridging interest is quoted monthly rather than annually because these are short-term facilities, typically running for a few months up to 24 months.

What is a representative example of a bridging loan?

Representative example: a gross loan of £250,000 secured against a property valued at £500,000 (50% LTV) over a 12 month term at 0.59% per month. Interest is retained at £17,700. A lender arrangement fee of 2% of the gross loan applies at £5,000. Legal fees are estimated at £3,000, a valuation fee of £600, an administration fee of £495 and a telegraphic transfer charge as levied by the lender. Total amount repayable at redemption is £250,000 plus any exit fee, which ranges from 0% to 1% of the gross loan.

Figures are illustrative. Your own quotation will be based on the actual property, term and lender.

How is bridging loan interest charged?

There are three common methods:

Retained — the interest for the full term is deducted from the gross loan at drawdown, so there are no monthly payments. Most common.
Rolled up — interest accrues each month and is settled in full at redemption.
Serviced — interest is paid monthly from income, which increases the net amount you receive on day one.

Where a facility is redeemed early, most lenders on our panel charge interest only for the months used, subject to a minimum interest period of one month.

What fees apply on top of the interest rate?

Lender arrangement fee — 2% of the gross loan
Legal fees — typically £3,000 to £5,000, covering both your own and the lender's legal costs
Valuation fee — around £600 on a property of £500,000, varying with value and property type, and not always required where an automated valuation is acceptable
Administration fee — £495
Telegraphic transfer fee — charged by the lender at their prevailing rate
Exit fee — 0% to 1% of the gross loan, depending on the lender and product
Broker fee — 0% to 1%, depending on the complexity of the case, disclosed to you in writing before you commit

The total cost of borrowing matters more than the headline rate. A lower monthly rate with heavy fees can work out more expensive than a slightly higher rate with a cleaner fee structure.

What loan to value can I borrow at?

Prime cases are typically capped at 65% LTV, standard cases at 75% and re-bridge cases at 70%. Where an automated valuation model is used in place of a physical valuation, lending is capped at 75%.

Higher gearing is possible on specific auction purchases where the property is being bought below open market value. In those cases some lenders will consider up to 80% of the open market value at 0.995% per month, which can cover the full purchase price where the discount is large enough.

Does the exit route affect the rate I am offered?

Significantly. Bridging lenders price on how confident they are of being repaid on time. A sale already under offer, or a refinance with a mortgage offer in principle already in place, prices better than an open-ended intention to sell.

Cases with a weak or unevidenced exit either price higher or are declined. Before we approach lenders we will want to understand how the facility gets repaid and what evidence supports it.

Are rates higher if I have adverse credit?

Usually, yes. Bridging is asset-led, so defaults, CCJs, arrears and even discharged bankruptcy do not automatically rule out a facility, but they narrow the lender panel and typically move the rate up and the LTV down.

The security and the exit carry more weight than the credit file. See bad credit bridging loans for more detail.

How much can I borrow?

We arrange facilities from £25,000 to £50 million. Larger loans are not necessarily cheaper per pound borrowed, but above around £500,000 a different set of lenders comes into play, including private banks and specialist commercial desks. See large bridging loans.

What rates apply to refurbishment and development cases?

Refurbishment facilities are typically capped at 75% net on day one and 70% of gross development value, rising to 80% where the borrower is funding the works themselves. Pricing depends on the scale of the works, whether planning is in place and the borrower's track record.

Heavier schemes are usually better suited to development finance than to a straight bridge.

How quickly can a bridging loan complete?

A decision in principle can usually be issued the same day. Completion with a private lender can be achieved in around five working days where the legals and valuation move quickly. Most cases complete in two to four weeks.

The usual delays are legal, not lender-side. Missing title documents, unresponsive solicitors and outstanding searches account for most overruns. See quick bridging loans.

Do you charge to get a quote?

No. Indicative terms and a decision in principle are free and carry no obligation. Where a broker fee applies to a case it is disclosed in writing before you commit to anything, and it ranges from 0% to 1% depending on complexity.

How many lenders do you compare?

We work with around 20 core lenders and have access to around 50 more, including private lenders and family offices that do not deal directly with the public. Our directors have around 20 years of experience in the bridging market between them.

We are a specialist bridging broker, not a lender. We do not lend our own money and we are not tied to any single funder.

Are bridging loans regulated?

Some are and some are not. A bridging loan secured against a property you or an immediate family member live in, or intend to live in, is generally a regulated mortgage contract. Loans secured against investment property, commercial premises or land are generally unregulated.

Bridging Finance 4U arranges non-regulated bridging finance only. We hold no FCA permissions and we do not arrange regulated mortgage contracts. Where a case falls within the regulated perimeter we refer it to a regulated firm under an introducer arrangement.

What happens if I cannot repay at the end of the term?

Speak to us as early as possible, ideally well before the term end. Depending on the lender and the circumstances an extension may be available, usually at a higher rate, or the facility may be refinanced onto a term product such as a bridge to let mortgage.

Where no repayment is made and no extension is agreed, default interest applies and the lender can take steps to recover the debt, including possession and sale of the security. Your property may be repossessed if you do not keep up repayments on a loan secured against it.

Ready to Discuss Your Bridging Requirement?

Tell us about the property, the amount you need and how the loan will be repaid, and we will come back with indicative terms from our lender panel. A decision in principle can usually be issued the same day, with no fee and no obligation.