- Typical range
- Around 0.5%–1.25% per month
- Quoted as
- Monthly, not APR, in most cases
- Key driver
- Loan-to-value and exit strength
- Rate type
- Fixed for the term is standard
Why bridging quotes rates monthly
Because bridging loans are short-term by design, the market has standardised on monthly rates for ease of comparison, though lenders must still disclose an APR for regulated products. A 0.75% monthly rate is not the same as 0.75% annually — multiply roughly by 12 to get a sense of the annualised cost, though compounding and fees mean it's not an exact conversion.
What moves the rate up or down
Loan-to-value is the biggest single factor: a 50% LTV bridge will price meaningfully sharper than a 75% LTV one. Security type matters too — a standard residential investment property is viewed more favourably than a specialist asset like a pub or a part-built development. A clear, credible exit (sale agreed, refinance in principle) also earns a better rate than a vague one.
Fixed vs variable bridging rates
The vast majority of bridging loans carry a fixed rate for the term, giving certainty over the total cost regardless of Bank of England movements. Some larger commercial bridges link to a base rate plus margin, which can work in your favour if rates fall during the term but adds uncertainty if they rise.
Negotiating the rate
Rate is rarely fixed in stone at first quote, particularly on larger loans or where you can offer additional security or a lower LTV. A whole-of-market broker approaching multiple lenders simultaneously creates competitive tension that a single direct application to one lender cannot.
Frequently asked
Is a lower monthly rate always the better deal?
Not necessarily — check whether it's offset by a higher arrangement fee or a shorter minimum term charge. Total cost over your expected term is the number that matters.
Do rates differ for commercial vs residential security?
Yes, typically. Commercial and semi-commercial security tends to price slightly higher than standard residential investment property, reflecting valuation and liquidity risk for the lender.
Can I fix my bridging rate for longer than the loan term?
Bridging rates are fixed for the agreed term only, usually up to 24 months. If you extend beyond that, expect the rate to be renegotiated at prevailing market pricing.
Does my credit history affect the bridging rate?
It plays a smaller role than with mainstream lending since bridging is asset-led, but a poor recent credit history or unresolved defaults can still push pricing up or narrow the lender panel available to you.
How quickly can I get an indicative rate?
A same-day or next-day indicative quote is typical once basic details of the property and exit are provided, with a fuller offer following after valuation.
Compare bridging rates properly
Speak to us on 0345 2690628 before accepting a single-lender quote.
Related reading
Situations this applies to
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