Bridging — pricing factors (UK)
What lenders weigh when pricing bridging cases — not live quotes. Use our calculators and speak to an FCA-authorised broker for firm-specific numbers.
Mortgage118 does not publish indicative rate bands. Lender pricing changes daily and depends on your profile.
Not FCA-authorised · Directory only · Verify on FCA register
What lenders look at
These factors shape whether a bridging case is accepted and how it is priced. They are not a quote.
- Clear exit strategy for the loan
- Strong financial position and credit history
- Adequate deposit and reserves
- Property investment experience preferred
- Professional team in place
- Suitable property type and condition
For indicative numbers, use our mortgage calculators and compare brokers who specialise in bridging.
What moves your rate up or down
These are the strongest factors lenders weigh when setting pricing.
- Fast access to funds within days or weeks
- Flexible lending criteria and quick decisions
- No monthly payments required (interest rolled up)
- Suitable for chain breaks and time-sensitive purchases
- Exit strategy flexibility
Fee breakdown
Common charges to plan for alongside the headline rate.
Arrangement Fee
Facility fee
1.5% - 2%
of loan amount
Valuation Fee
Fast-track property valuation
£500 - £2,000
expedited service
Legal Fees
Dual representation possible
£1,000 - £2,500
both sides
Exit Fee
Charged on redemption
0% - 1.5%
varies by lender
Broker Fee
Bridging arrangement
0.5% - 1.5%
on completion
Rate FAQs
Quick answers to common pricing questions.
What is an exit strategy for bridging finance?+
An exit strategy is your plan to repay the bridging loan, such as selling the property, refinancing with a traditional mortgage, or using other funds. Lenders require a clear and realistic exit strategy before approving the loan.
Do I need to make monthly payments on bridging finance?+
No, most bridging loans have rolled-up interest, meaning you don't make monthly payments. The interest is added to the loan balance and repaid when you exit the loan. However, some lenders offer monthly payment options.
What are the typical interest rates for bridging finance?+
Bridging finance rates typically range from 0.85% to 1.25% per month, which is higher than traditional mortgages due to the short-term nature and increased risk. Rates may vary based on the loan amount, property type, and your circumstances.
Can I get bridging finance with adverse credit?+
Some specialist lenders may consider bridging finance for borrowers with minor credit issues, though the criteria may be stricter and rates higher. You'll typically need a larger deposit and a strong exit strategy.
What happens if I can't exit the bridging loan on time?+
If you can't exit on time, you may face higher interest rates, additional fees, or the lender may take possession of the property. It's crucial to have a realistic exit strategy and contingency plans in place.
What documents do I need for bridging finance?+
You'll need proof of income, bank statements, property details, exit strategy documentation, and evidence of your deposit. The exact requirements vary by lender and the complexity of your case.