Rate Indexes / Bridging Loans
UK Bridging Loan Rate Index 2026
Bridging loan rates are typically quoted as monthly interest rates rather than annual APR, reflecting their short-term nature. This index shows typical monthly rates, arrangement fees, and LTV limits from Spark Finance's bridging lender panel. Total cost of a bridging loan includes interest, arrangement fee, legal fees, and exit fee where applicable.
Key Facts - Bridging Loans
0.45% to 0.75%
0.75% to 1.25%
0.85% to 1.5%
1% to 2% of loan
Up to 75% (some to 80%)
Up to 70% combined
1 to 18 months
24 to 72 hours typically
5 to 15 working days typical
Indicative Rate Ranges
Rates are indicative only. Your actual rate depends on credit profile, trading history, loan size, security offered, and the lender's current appetite. These ranges do not constitute a quote or guarantee.
| Category | Indicative Rate | Notes |
|---|---|---|
| Residential first charge (prime, LTV < 60%) | 0.45% to 0.65% per month | Clean exit, clean credit, prime property |
| Residential first charge (standard, LTV 60-75%) | 0.65% to 0.95% per month | Standard UK residential property |
| Commercial/semi-commercial first charge | 0.75% to 1.25% per month | Mixed-use or pure commercial property |
| Second charge residential | 0.85% to 1.35% per month | Subject to first charge lender consent |
| Development exit finance | 0.6% to 0.9% per month | Completed units pending sales or refinance |
| Adverse credit / specialist | 0.95% to 1.5% per month | CCJs, defaults, or non-standard property |
Eligibility Factors
- Exit strategy - lenders require a credible, documented exit (sale, refinance, or other)
- Security - residential, commercial, or land; condition and marketability assessed
- LTV - loan as a percentage of open market value or GDV
- Credit history - adverse credit accepted by specialist lenders at higher rates
- Experience - for development or refurbishment projects, track record matters
- Location and property type - prime UK locations attract better rates
- Timeframe - how long the loan is needed and whether the exit is realistic
Lender Types
- Specialist bridging lenders (Together, Precise, Shawbrook)
- Private credit funds
- Development finance specialists
- Challenger bank bridging divisions
- Family office and private capital sources
Frequently Asked Questions
What is a typical bridging loan interest rate in the UK?
UK bridging loan rates are typically quoted monthly. First charge residential bridging rates typically range from 0.45% to 1.25% per month depending on LTV, property type, and credit profile. At 0.75% per month, a 6-month bridging loan of £500,000 would cost £22,500 in interest alone, before arrangement fees and legal costs. Always calculate the total cost of the loan, not just the monthly rate.
What fees are charged on a bridging loan?
In addition to monthly interest, typical bridging loan fees include: an arrangement fee (usually 1-2% of the loan amount), legal fees for the lender's solicitor (typically £1,000 to £2,500), valuation fee (£500 to £2,000+), and sometimes an exit fee (0.5-1% of loan). Some lenders roll all fees into the loan so there is nothing to pay upfront. Total fees on a £500,000 bridging loan can typically be £5,000 to £15,000.
What is the maximum LTV for a bridging loan?
Most bridging lenders will lend up to 70-75% of open market value (OMV) on a first charge basis for residential property. Some specialist lenders will consider up to 80% in certain circumstances. Second charge bridging is typically limited to 70% combined LTV (first and second charge combined). Commercial property typically attracts lower maximum LTVs of 60-70%.
Methodology
Bridging loan rate data is compiled from terms issued through the Spark Finance broker panel. Monthly rates and arrangement fees represent the 10th and 90th percentile of initial terms received. Total cost of borrowing (TCB) should always be calculated including all fees. Data updated quarterly.
Source notes
- Spark Finance broker panel - 250+ UK specialist lenders
- Applications processed June 2024 to June 2026
- Monthly rates do not include arrangement fees, legal fees, or exit fees
- Spark Finance is a credit broker, not a lender
- FCA Authorised, FRN 958123