Current bridging loan rates
In 2026, UK bridging loan rates typically range from 0.44% to 1.5% per month. The lowest rates are reserved for low-risk deals with strong LTVs, experienced borrowers, and clear exit strategies.
Unlike mortgages, bridging rates are almost always quoted monthly. To compare with annual rates, multiply by 12 — so 0.55% monthly equates to 6.6% annually.
What affects your bridging rate
- Loan-to-Value: Lower LTV = lower rate. Sub-60% LTV gets the best rates
- Property type: Standard residential is cheapest; commercial, land, and non-standard properties cost more
- Exit strategy: A strong exit (confirmed sale, mortgage offer) reduces risk and rate
- Speed required: Very fast completions (under 7 days) may attract a premium
- Borrower profile: Experience, credit history, and net worth all influence pricing
- Loan size: Very small or very large loans may attract different pricing
💡 Ask your broker for a 'total cost of borrowing' comparison rather than just comparing monthly rates. This gives the true picture including all fees.
Fixed vs variable bridging rates
Most bridging loans are fixed rate for the agreed term, giving certainty over costs. Some lenders offer variable rates linked to the Bank of England base rate, which can be cheaper initially but carry the risk of increases.
For short-term bridges (under 6 months), the difference between fixed and variable is usually minimal. For longer terms, a fixed rate provides more predictability.
How to get the lowest rate
The best bridging rates go to low-LTV, straightforward deals with strong exits. To improve your rate:
- Maximise your deposit or equity contribution
- Have your exit strategy confirmed (e.g., a mortgage offer in place)
- Use an experienced bridging broker who has volume relationships with lenders
- Be flexible on completion timing — rush jobs cost more
- Ensure your credit profile is as clean as possible
⚠️ Watch out for lenders who quote low headline rates but add high arrangement and exit fees. The cheapest rate on paper isn't always the cheapest loan in practice.
Compare total cost, not just rate
The cheapest monthly rate doesn't always mean the cheapest loan. Compare total costs including arrangement fees, exit fees, and legal costs. A broker can produce a true cost comparison. Get matched with a bridging broker through Nesto for free.