In this section we explain how borrowers can identify genuine bridging loan deals and compare the true overall cost of their different options, rather than relying on headline interest rates alone.
We start by outlining the most competitive bridging loan deals currently available for regulated and unregulated residential bridging loans. We also include the options for heavy refurbishment loans.
Also provided is a quick guide to available interest rates for semi-commercial and commercial property, and land.
Overall, this page helps borrowers understand how to spot a genuinely competitive bridging loan, avoid misleading promotions and compare lenders on a true like-for-like cost basis.
For bridging loans from £50,000 to £1.5 million, secured against residential property, the best all-round plans that we arrange most often now start from the rates and terms below.
| Residential bridging loan rates | ||
|---|---|---|
| LTV | Regulated loans | Unregulated loans |
| 50% | 0.51% | 0.59% |
| 60% | 0.52% | 0.61% |
| 65% | 0.52% | 0.65% |
| 70% | 0.54% | 0.67% |
| 75% | 0.58% | 0.71% |
For detailed quotes please use our instant bridging loan calculator or call us anytime.
What are the starting rates and maximum Loan to Values for some of the largest regulated bridging lenders
| Regulated Lender | Lowest Rate | Minimum Loan | Max LTV |
|---|---|---|---|
| UTB | 0.51% | £50k | 75% |
| Precise | 0.53% | £50k | 75% |
| Octopus | 0.55% | £50k | 70% |
| MHBS | 0.57% | £200k | 70% |
| Glenhawk | 0.58% | £250k | 75% |
| Stream | 0.59% | £150k | 75% |
| Greenfield | 0.69% | £75k | 75% |
| West One | 0.75% | £75k | 70% |
| Together Personal Finance | 0.77% | £50k | 70% |
The table takes account of any exclusive deals (that we are aware of) that each lender offers. It is not a complete list of regulated lenders.
For heavy refurbishment loans, rates are usually a little higher:
| Regulated Lender | Lowest Rate | Minimum Loan | Max LTV |
|---|---|---|---|
| UTB | 0.51% | £50k | 75% |
| Precise | 0.53% | £50k | 75% |
| Octopus | 0.55% | £50k | 70% |
| MHBS | 0.57% | £200k | 70% |
| Glenhawk | 0.58% | £250k | 75% |
| Stream | 0.59% | £150k | 75% |
| Greenfield | 0.69% | £75k | 75% |
| West One | 0.75% | £75k | 70% |
| Together Personal Finance | 0.77% | £50k | 70% |
For loans above £1.5 million, there are more specialist lenders who are able to offer even lower interest rates than the standard residential bridging products mentioned above. Please contact us for further details regarding large bridging loans.
Where borrowers have a poor credit history, options are still available. Depending on the amount, severity, and recency of the adverse credit, the monthly rate may be higher than the standard rates above.
For applicants with significant CCJs, arrears, repossessions, IVAs, or bankruptcies, this increase may typically be 0.05% to 0.25% per month on top of the rates already mentioned, depending on individual circumstances. Therefore, substantial adverse credit with a high LTV of 70% to 75% could mean an interest rate of around 0.85% to 0.90% per month.
There are very limited, bridging facilities that can lend up to 85% of market value. Bridging options may be available on a case by case basis, but they do become much more limited as loan to values increase past 75% of Open Market Value.
Semi-commercial properties combine both residential and commercial elements, such as a shop with a flat above.
Typical semi-commercial bridging terms include:
Fully commercial bridging loans generally start from around:
Other common features include:
Bridging loans against land usually come with lower maximum LTVs.
Typical starting rates are:
Other points to note:
When looking for bridging finance, it is important to focus on genuine deals rather than headline rates that are simply designed to attract enquiries, then don’t deliver.
The lowest advertised rate is not always the cheapest option. Once arrangement fees, broker fees, valuation costs, legal fees, exit fees, minimum interest periods, and the way interest is calculated are taken into account, a deal that looks cheap at first glance can prove expensive overall.
“If you want to find the best bridging loan, the key is not simply to look for the lowest rate, it is to compare the true total cost of each option”
This guide explains how to identify genuine bridging loan deals, avoid misleading promotions, and compare options properly. Making sure that:
Please note: Rates, fees, and criteria can change regularly, so the figures on this page should be treated as indicative and confirmed before application.
Some lenders advertise very low monthly rates, such as 0.35% or 0.38% per month. These products may exist, but the attractive rate may only apply for the first six months. After that, the rate can rise sharply, for example to 1.25% per month for the remainder of the term.
These products also usually carry an exit fee, for example 1.25%, which can more than wipe out any savings made if the loan is repaid before the higher rate kicks in.
Always check whether the advertised rate is the actual monthly rate, or a margin above a base rate.
For example, a lender may quote 0.45% plus base. In that case, you may need to confirm which base rate they are using. It may be the Bank of England base rate, but some lenders use their own internal base rate, which will likely be higher again.
With the Bank of England base rate currently at 3.75% pa, this adds 0.31% to the 0.45% rate mentioned above, meaning their actual rate is currently 0.76% per month.
Some lenders advertise rates that are rarely, or in practice never, available. Instead, they may offer a higher rate later in the process, either when issuing terms or near the end of the transaction.
If this happens late in the process, the borrower may feel pressured to proceed because time and money have already been spent. That is why it is important to look beyond the headline rate and assess the credibility of the whole deal being offered.
To compare bridging loans correctly, you need to compare them on a like-for-like basis.
Because bridging finance is usually short-term, a monthly interest rate is often the easiest way to compare options. However, the monthly rate should never be viewed in isolation.
If just comparing the rate, need to consider if the interest is being paid monthly, or is rolled up or retained.
Then the simplest way is to use a spreadsheet or our bridging loan calculators, Roll Up Calculator and Retained Interest Calculator, to see the true costs.
You should also always compare:
When comparing bridging loan options, the first step is to identify which lenders can provide the amount you need within the timeframe required.
Once you have your options, the next step is to compare the total cost of each facility, rather than focusing solely on the interest rate.
With bridging finance, the cheapest option is not always the one with the lowest monthly rate. Arrangement fees, broker fees, valuation costs, legal fees, exit fees, minimum interest periods, and the way the interest is calculated can all have a major impact on the overall cost.
The most reliable way to identify the best value is to calculate the full cost of each loan and compare the options side by side.
This is important not only for finding the cheapest facility, but also for deciding whether the bridging finance option actually makes commercial sense. Once the full finance costs are included, a project that originally looked profitable may no longer make financial sense.
Equally, where bridging is being used to buy before sale, there are situations where accepting a slightly lower offer on a property may cost less overall than paying for a bridging loan and holding out for a higher price.
To understand the true cost of a bridging loan, it helps to break each option down into the following 5 categories.
These are the costs required to get the loan to a point where it is ready to drawdown.
They can include:
This category is important because some lenders are relatively inexpensive to set up, especially where indemnity policies, AVMs or desktop valuations can be used.
Other loan plans may cost more to get a loan offer in place, but have lower costs once the loan is drawn down.
As bridging is often arranged as a back-up plan, many are never actually drawn. Knowing the set-up cost can therefore be important when deciding which option to proceed with, especially if the likelihood of having to draw down the loan is low.
These are the costs payable only if the loan actually completes and funds are released.
They may include:
Drawdown can be one of the most expensive parts of the transaction, so it is important to understand how lenders differ at this stage.
Once set-up and drawdown costs have been accounted for, it’s a good idea to work out how much the loan will cost if it runs the full loan term.
This may include:
This, when added to 1. Set-up costs and 2. Drawdown costs, gives you the maximum cost of the loan if it runs all the way to maturity.
This is often the most useful comparison.
You may expect to repay the loan before the full term is reached. If so, calculate the total cost up to your anticipated repayment date.
This should include:
It is sensible to run this calculation against more than one possible repayment date.
We certainly advise considering what happens if things do not go to plan, exit is delayed and the loan runs past its original term.
Additional costs may then include:
You should also check:
The best bridging loan is the one that offers the lowest total cost, that has clear pricing, realistic underwriting, and terms that fit with the borrower’s exit strategy.
A low headline rate is appealing, but only if it is genuinely available and not accompanied with extra fees and hidden costs elsewhere in the agreement.
A good way to compare bridging finance offers is to calculate the full cost of each option from start to finish, and then assess them on a like-for-like basis.
There are some really competitive lenders, but also some very expensive ones. If going direct to any lender or using a broker, check that the terms you have been offered are in line with the figures mentioned earlier on this page, and if they are more expensive, question why, and continue looking for some more bridging options.
Last updated: 05 May 2026 | © KIS Bridging Loans 2024 | Privacy Notice | Complaints Policy
We would like to hear from anyone who has had a bad experience, having taken out a bridging loan or an unregulated first charge loan.
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Please contact us if:
We are interested in knowing more about:
Borrowers with longer term loans – if you still have, or had, and old unregulated secured loan agreement taken out before the credit crunch in 2008, where the 13 year record low interest rates from 2009 to 2022 were not passed on. In other words if you had a loan that was not on a fixed rate taken out in 2008 or before, where the repayments or interest charges did not reduce despite the reduction in interest rates. Bank of England base rate was 5.25% in February 2008, 12 months later it was 1.0%, then dropped further, remaining under 1.0% for 13 years.
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Please use the form below or email ugly@kisfinance.co.uk in confidence, and tell us what happened and include as much detail as you can. Alternatively send your contact details and ask us to call you.