Compare bridging loan rates from specialist UK lenders

How do I get bridging loan advice?

Bridging loans move quickly, often completing in two to four weeks. Getting the right advice early ensures you compare the full market and avoid costly mistakes. Follow these steps to find the right deal for your situation.

1. Understand your timeline and exit strategy: Before approaching a broker, clarify when you need the funds, how long you need them for and how you plan to repay. Lenders assess every bridging application against a clear exit route, whether that is selling a property, refinancing onto a mortgage or using funds from another source. Having this mapped out from the start strengthens your application.
2. Speak to a specialist bridging broker: A broker with access to the whole bridging market can compare rates, fees and terms from dozens of lenders in a single search. Many specialist bridging lenders do not deal directly with the public, so using a broker gives you access to deals you would not find on your own. Read our full guide to bridging loans for more detail on what to expect from the process.
3. Gather your property and financial documents: Prepare a property valuation or estate agent details, proof of your exit strategy, photo ID, proof of address and details of any existing borrowing secured against the property. Having these ready from the outset speeds up the process significantly and avoids delays that cost you money in accrued interest.
4. Get a decision in principle: Your broker can arrange indicative terms from suitable lenders, confirming how much you can borrow, at what rate and on what conditions, before you commit to a full application or pay for a valuation.
5. Submit your application and complete: Once you are happy with the terms, your broker submits a full application. The lender instructs a valuation, solicitors handle the legal work and funds are released on completion. A well-prepared application can reach completion in two to three weeks.

What kind of bridging loan do I need?

The right bridging loan depends on your property, your timeline and how you plan to repay. Each situation calls for a different product, and choosing correctly from the outset can save you thousands in fees and interest.

If you are buying at auction

Auction purchases typically require completion within 28 days of the hammer falling. A closed bridging loan with a fixed repayment date works well here because lenders can price it competitively when the exit timeline is clear. You will need a valuation arranged quickly and your solicitor instructed before the auction. Many experienced auction buyers have their bridging finance agreed in principle before they bid. Our bridging loan guide explains the auction financing process in detail.

If you are breaking a property chain

When your onward purchase is at risk because your current property has not yet sold, a bridging loan lets you complete the purchase and repay when your sale goes through. This is one of the most common uses of residential bridging finance. You borrow against your current property or the new one, complete your purchase and repay the bridging loan from the sale proceeds once your buyer completes.

If you are renovating or converting a property

Light refurbishment bridging loans fund cosmetic upgrades such as new kitchens, bathrooms and redecorations. Heavy refurbishment or development finance covers structural work, extensions, loft conversions or change-of-use projects. The loan amount is typically based on the property's projected value after works are completed, known as the gross development value. See our development bridging loan guide for project-specific options and lender criteria.

If you need a regulated bridging loan for your home

If the property you are borrowing against is, or will be, your main residence, you need a regulated bridging loan. This provides additional consumer protections, including a 14-day reflection period after the offer is issued. Regulated bridging loans are generally available for terms of up to 12 months and are subject to affordability assessments similar to a standard mortgage.

If you are purchasing a commercial property

Commercial bridging loans cover offices, retail units, warehouses, mixed-use buildings and land purchases. These are unregulated products with loan-to-value ratios typically capped at 65% to 70%. Rates tend to be slightly higher than residential bridging because commercial property values can be more volatile. Compare commercial bridging loan options to see what is available for your project.

What types of bridging loan are there?

Bridging loans come in several forms, each suited to different circumstances. Understanding the key distinctions helps you and your broker narrow down the right product quickly.

Many borrowers find their situation does not fit neatly into a single category. A broker can help you identify the right combination of features for your circumstances. For example, an auction purchase of a property you intend to live in would require a closed, first charge, regulated bridging loan. Compare current bridging loan rates across these product types.

How much does a bridging loan cost?

Bridging loans involve several costs beyond the headline interest rate. Understanding the full picture before you apply helps you compare deals accurately and avoid surprises at completion.

The total cost of a bridging loan depends on how long you hold it. A £250,000 loan at 0.75% monthly interest with a 2% arrangement fee, £1,000 in legal fees and a 1% exit fee would cost approximately £21,750 over six months. Use our bridging loan calculator to estimate the total cost for your specific loan amount and expected term.

How can I find a better bridging loan deal?

The difference between a competitive bridging loan and an expensive one can amount to thousands of pounds, even on a short-term loan. These steps can help you secure a lower rate and reduce your overall costs.

1. Have a clear, documented exit strategy: Lenders price risk, and a solid exit route reduces theirs. If you are selling a property, having it already on the market or under offer can unlock lower rates. If you are refinancing, a decision in principle from a mortgage lender strengthens your application considerably and demonstrates to the bridging lender that your exit is credible.
2. Offer a lower loan-to-value ratio: Borrowing 60% of the property value rather than 75% can reduce your monthly interest rate by 0.2% to 0.4%. If you have additional property or assets to offer as supplementary security, this can bring your effective LTV down further and open up the most competitive pricing tiers.
3. Compare the total cost, not just the rate: A loan at 0.65% per month with a 2% arrangement fee and a 1.25% exit fee may cost more overall than a loan at 0.75% per month with a 1% arrangement fee and no exit fee. Always calculate the total cost of borrowing for your expected term before deciding. Compare bridging loan rates to see current market pricing across lenders.
4. Act quickly with your documentation: Bridging lenders reward borrowers who provide clean, complete documentation upfront. Delays add cost because interest accrues throughout the process, and a slow application can mean losing the property deal entirely, particularly for auction purchases.
5. Use a broker with whole-of-market access: A specialist bridging broker searches across the entire market, including lenders who do not advertise publicly or accept direct applications. This competition between lenders works in your favour on pricing, and an experienced broker can often negotiate fee reductions on your behalf.

How does a bridging loan work?

A bridging loan is short-term secured finance, typically lasting 1 to 18 months, that lets you borrow against property when you need funds quickly. Here is how the process works from initial enquiry through to repayment.

Step 1: Initial enquiry and indicative terms. You or your broker approaches bridging lenders with the details of the property, the amount you need, how long you need it for and your planned exit strategy. Within 24 to 48 hours, you receive indicative terms outlining the rate, fees and conditions. This stage is usually free and does not involve a credit check.

Step 2: Valuation and legal work. Once you accept the indicative terms, the lender instructs an independent valuation of the security property. Simultaneously, solicitors begin the legal work, including title checks and searches. For straightforward residential cases, this stage typically takes one to two weeks. Complex or commercial properties may take longer.

Step 3: Formal offer and completion. After the valuation confirms the property value and the legal checks are satisfactory, the lender issues a formal loan offer. Once you sign and your solicitor confirms everything is in order, funds are released. Many bridging loans complete within two to four weeks of the initial enquiry, though some lenders can fund in as little as five working days for urgent cases.

Step 4: Interest during the loan term. You pay interest on the borrowed amount for the duration of the loan. Interest can be structured in three ways: rolled up (added to the loan balance and paid at the end), retained (deducted from the loan advance at the start based on the expected term) or serviced monthly (paid each month like a standard mortgage payment). Our full bridging loan guide explains each interest structure in more detail, including which suits different borrower situations.

Step 5: Exit and repayment. You repay the loan in full, including any rolled-up interest and outstanding fees, by the agreed end date. The most common exit routes are selling the security property, refinancing onto a longer-term mortgage or using proceeds from another asset sale. A clean exit with no delays avoids extension fees or penalty charges that can significantly increase the total cost of borrowing.