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usBridging Loan Rates Guide 2026 - What UK Investors Pay
How much does bridging finance cost in 2026? Lendlord rates start from 0.75% per month, tiered by loan-to-value and term. This guide breaks down indicative UK bridging loan rates, every fee line, what moves your price, and a real worked example - so you can compare quotes on a like-for-like basis.
In 2026, UK bridging loan rates typically range from 0.75% to around 1.08% per month, depending on LTV and term. Lendlord is a direct bridging loans lender with Dynamic pricing, so shorter facilities and lower LTV generally mean a lower monthly rate and a lower total cost on exit.
How bridging loan rates are quoted in the UK
Unlike a mortgage APR, bridging is almost always priced as a monthly interest rate on the gross loan. A rate of 0.85% pm on a £200,000 bridge costs roughly £1,700 in interest each month while the loan is outstanding - before fees.
Three ways to pay that interest change your cash flow during the term:
| Option | Effect on rate | Best when |
|---|---|---|
| Retained | Deducted upfront from the advance | No monthly payments |
| Rolled-up | Accrues on the balance until exit | Maximise day-one cash |
| Serviced | Paid monthly from income | Rental or other cash flow |
The rate itself does not change between these options - only when you pay it.
Indicative Lendlord Dynamic rate tiers (2026)
Rates are tiered by loan-to-value (LTV) and term length. Lower LTV and shorter terms sit in a better band. The table below is indicative - your exact rate depends on the property, exit and deal structure.
Premium tier - LTV below 50%
| Term | Indicative rate p/m |
|---|---|
| Up to 3 months | From 0.75% |
| 4-6 months | From 0.85% |
| 7-9 months | From 0.92% |
| 10-18 months | From 0.98% |
Standard tier - LTV 50% to 65%
| Term | Indicative rate p/m |
|---|---|
| Up to 3 months | From 0.85% |
| 4-6 months | From 0.92% |
| 7-9 months | From 0.99% |
| 10-18 months | From 1.05% |
Maximum tier - LTV 65% to 75%
| Term | Indicative rate p/m |
|---|---|
| Up to 3 months | From 0.87% |
| 4-6 months | From 0.95% |
| 7-9 months | From 1.02% |
| 10-18 months | From 1.08% |
Indicative rates only. Lendlord lends up to 75% of market value, or up to 90% of purchase price on a below-market deal. Additional security can support higher leverage on selected cases. Use the bridging calculator for a personalised illustration.
What fees sit on top of the rate?
The monthly rate is only part of the picture. A full bridging quote should itemise every cost line:
- Arrangement fee - typically from 1.0% of the gross loan, often added to the facility
- Valuation fee - usually £250 to £750 plus VAT, depending on property type
- Legal fees - typically £750 to £1,500 plus VAT; dual representation can reduce total legals
- Admin and search fees - often £250 to £750 plus VAT combined
- Exit fee - common on some UK bridging products (often 1-2% of the loan); many Lendlord Dynamic bridges have £0 exit fee
As a direct lender, Lendlord charges no broker fees on investor applications.
What drives your bridging rate?
Two investors can both see "from 0.75% pm" and receive different numbers. The main pricing levers in 2026 are:
- Loan-to-value - lower LTV means lower risk and a better tier
- Term length - a 3-month bridge prices below an 18-month facility on Dynamic products
- Property type - residential is typically sharper than commercial or semi-commercial
- Condition and exit - unmortgageable stock with a clear refinance can still price well if the security and exit stack up
- Closed vs open bridge - a fixed, evidenced exit date can support keener pricing
"Investors who model gross loan, net loan and total cost - not just the headline rate - make better decisions. A 0.05% difference on the rate can be wiped out by a 2% arrangement fee or an exit charge."
Claire - Senior Bridging Specialist, LendlordDynamic bridging: why shorter terms cost less
Lendlord Dynamic bridging rewards speed. Finish ahead of schedule and you pay less overall:
- Lower monthly rate on shorter initial terms (see tiers above)
- Early redemption - repay when your exit completes and stop accruing interest
- No exit fee after three months on Dynamic products - no lock-in penalty
That is the opposite of a fixed-rate bridge where you pay the same monthly cost whether you exit in month four or month twelve. If your refinance or sale is likely inside six months, Dynamic pricing can materially cut total cost.
Worked example: auction purchase in Nottinghamshire
Below is a real Lendlord-funded deal completed in April 2026 - a 2-bed detached house bought at auction in Nottinghamshire. It shows how rate and fees combine into a total cost figure.
| Cost line | Amount |
|---|---|
| Gross loan | £54,400 |
| Interest rate | 0.85% pm (68% LTV tier) |
| 18-month interest | £8,323 |
| Arrangement fee | £1,500 |
| Valuation fee | £450 + VAT |
| Legal fees (dual representation) | £1,100 + VAT |
| Admin / TT / redemption | £150 |
| Exit fee | £0 |
| Broker fee | £0 |
| Estimated total (18 months) | £11,523* |
*Excluding VAT on valuation and legal fees (approx. £310). Total including VAT approx. £11,833. Figures from a completed deal; your terms will differ.
How to compare bridging quotes fairly
When you receive two or three term sheets, line them up on the same basis:
| Check | Why it matters |
|---|---|
| Gross vs net loan | Net is the cash you receive after retained interest and fees |
| Monthly rate and term band | Confirm which LTV tier and term length the rate assumes |
| All fees itemised | Arrangement, valuation, legal, admin, exit, broker |
| Early repayment | Can you exit early without penalty? |
| Total cost at your realistic exit month | A cheap rate on a 12-month term you clear in 4 months is expensive |
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Bridging loan rates - frequently asked questions
What are bridging loan rates in 2026?
Lendlord bridging rates start from 0.75% per month in 2026. The exact rate depends on loan-to-value, term length, property type and exit strategy. Lower LTV and shorter terms typically attract the best pricing.
How much does a bridging loan cost in total?
Beyond the monthly interest rate, budget for an arrangement fee (typically from 1% of the loan), valuation, legal fees and any admin charges. Lendlord Dynamic bridging has no exit fee on many products, and no broker fees as a direct lender.
What LTV affects bridging loan rates?
Rates are tiered by LTV. Loans below 50% LTV attract premium pricing, 50-65% is standard tier, and 65-75% is the maximum tier. Lendlord lends up to 75% of market value, or up to 90% of purchase price on a below-market deal.
Does a shorter bridging term mean a lower rate?
Yes. With Lendlord Dynamic bridging, shorter terms carry lower monthly rates. Repaying early also reduces total interest cost, and there is no exit fee after three months on Dynamic products.
Are bridging loan rates fixed or variable?
Most UK bridging loans quote a fixed monthly rate for the agreed term. Lendlord Dynamic pricing rewards shorter facilities and early redemption, so the total cost falls if you exit ahead of schedule.
How do I compare bridging loan quotes?
Compare gross loan, net loan, monthly rate, arrangement fee, valuation and legal costs, exit fees and broker fees. The cheapest headline rate is not always the cheapest deal once fees and term are included.
Related bridging finance
Lendlord is a direct lender of short-term property finance to UK investors. Rates and tiers shown on this page are indicative and subject to individual assessment. This page is informational and does not constitute financial advice. Your property may be repossessed if you do not keep up repayments or repay the loan at the end of the term.