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Bridging Finance

Bridging Loan Rates & Costs Explained

Understand what actually makes up the cost of a bridging loan, so you can compare offers properly and budget with confidence.

Bridging Loan
Rates and costs

We have whole of the market access allowing us to find our customers the best possible deal.

Monthly interest rates from
0.55% per month
for loans under £1 million
0.49% per month
for loans over £1 million

What Makes Up the Cost of a Bridging Loan

Bridging loans are priced monthly rather than as an annual rate, which reflects their short-term nature — but that also means the headline rate is only part of the picture. The total cost typically includes the monthly interest rate, an arrangement fee (usually a percentage of the loan), valuation fees, legal costs for both you and the lender, and sometimes an exit fee.

We always talk you through the full cost breakdown for any offer before you commit, not just the headline rate, so there are no surprises later.

The Main Costs to Budget For

  • Monthly interest rate — can often be rolled up and paid at the end rather than monthly
  • Arrangement fee — typically charged as a percentage of the loan amount
  • Valuation fee — covers the lender's assessment of the security property
  • Legal fees — for your solicitor and often the lender's solicitor too
  • Exit fee — charged by some lenders when the loan is repaid, though not all

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