{"id":319,"date":"2026-06-17T10:35:37","date_gmt":"2026-06-17T10:35:37","guid":{"rendered":"https:\/\/blog.ponte.finance\/?p=319"},"modified":"2026-06-17T11:41:05","modified_gmt":"2026-06-17T11:41:05","slug":"bridging-loan-rates-costs-in-the-uk-2026-full-breakdown","status":"publish","type":"post","link":"https:\/\/ponte.finance\/blog\/bridging-loan-rates-costs-in-the-uk-2026-full-breakdown\/","title":{"rendered":"Bridging Loan Rates & Costs in the UK : Full Breakdown"},"content":{"rendered":"

In short:<\/strong> Bridging loan rates in the UK are quoted as a monthly<\/em> interest rate, typically in the region of 0.6%\u20131.5% per month depending on loan-to-value, asset type and charge. The headline rate is only part of the picture \u2014 arrangement, valuation, legal and exit fees all feed into the true cost, so the right comparison is total cost over the term, not the rate alone.<\/p>\n

Bridging is priced differently from a mortgage, and that catches many borrowers out. A mortgage is quoted annually; a bridge is quoted monthly, because it is designed to be held for months, not decades. Understanding the full cost structure is the difference between a bridge that works commercially and one that quietly erodes your margin.<\/p>\n

How are bridging loan rates quoted?<\/h2>\n

Rates are expressed as a monthly percentage<\/strong>. A loan at 0.85% per month on \u00a3200,000 costs roughly \u00a31,700 in interest each month it runs. The longer you hold the loan, the more the monthly figure compounds into your total cost \u2014 which is why a credible, fast exit<\/a> matters as much as the rate itself.<\/p>\n

What is LTV, and why does it drive your rate?<\/h2>\n

Loan-to-value (LTV)<\/strong> is the loan as a percentage of the property’s value. A \u00a3140,000 loan on a \u00a3200,000 property is 70% LTV. It is the single biggest factor in your pricing because it defines the lender’s risk:<\/p>\n\n\n\n\n\n\n\n
LTV band<\/th>\nLender risk<\/th>\nEffect on pricing<\/th>\n<\/tr>\n<\/thead>\n
Up to 60%<\/td>\nLower<\/td>\nMost competitive rates<\/td>\n<\/tr>\n
60\u201370%<\/td>\nModerate<\/td>\nStandard market pricing<\/td>\n<\/tr>\n
70\u201380%+<\/td>\nHigher<\/td>\nHigher rates; fewer lenders<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Lower LTV means more of your own equity is in the deal, so the lender prices the loan more keenly. If you can reduce the loan amount or add security, you move into a better band.<\/p>\n

The full cost breakdown<\/h2>\n

A monthly rate alone never tells you what a bridge costs. These are the components to total up:<\/p>\n\n\n\n\n\n\n\n\n\n\n
Cost<\/th>\nTypical basis<\/th>\nNotes<\/th>\n<\/tr>\n<\/thead>\n
Monthly interest<\/td>\n~0.6%\u20131.5% \/ month<\/td>\nDriven by LTV, asset, charge<\/td>\n<\/tr>\n
Arrangement fee<\/td>\n~1%\u20132% of loan<\/td>\nOften added to the facility<\/td>\n<\/tr>\n
Valuation fee<\/td>\nProperty-dependent<\/td>\nDesktop valuations reduce cost<\/td>\n<\/tr>\n
Legal fees<\/td>\nLender + borrower side<\/td>\nEfficient panels keep this lean<\/td>\n<\/tr>\n
Exit fee<\/td>\n0%\u20131% (if applicable)<\/td>\nNot charged by every lender<\/td>\n<\/tr>\n
Broker fee<\/td>\nVaries<\/td>\nWhere a broker packages the deal<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

How interest is charged: retained, rolled or serviced<\/h3>\n