Bridging rates at a glance
Indicative published rates for bridging products on our panel, October 2026. Bridging rates are quoted per month. "Typical rate" is the middle half of products: the range that the central 50% of products fall within, so it shows where most of the market sits without the outliers at either end. The smaller line gives the lowest and highest product rates. Loan to value limits are those named in the product, where one is named, and for refurbishment and exit products may be measured on the value after works.
| Product | Typical rate a month | Maximum LTV | Arrangement fee | Lenders (products) |
|---|---|---|---|---|
| Unregulated bridging, first charge | 0.79% to 0.99%from 0.54%, up to 1.29% | 75%up to 85% | Most often 2%0% to 5% | 49 (181) |
| Regulated bridging, first charge | 0.59% to 0.93%from 0.53%, up to 1.25% | 70%up to 75% | Most often 2%2% to 2.5% | 14 (26) |
| Second charge bridging | 0.93% to 1.07%from 0.69%, up to 1.5% | 65%up to 75% | Most often 2%1% to 4% | 23 (59) |
| Light refurbishment bridging | 0.75% to 0.95%from 0.57%, up to 1.25% | 75%up to 90% | Most often 2%2% to 5% | 37 (104) |
| Heavy refurbishment bridging | 0.8% to 0.95%from 0.57%, up to 1.25% | 75%up to 85% | Most often 2%1% to 3% | 36 (61) |
| Land bridging | 0.95% to 1.19%from 0.83%, up to 1.5% | 50%up to 85% | Most often 2%2% to 3% | 17 (21) |
| Development exit bridging | 0.73% to 0.9%from 0.64%, up to 1.12% | 75%up to 85% | 2% | 18 (31) |
| Bridge-to-let and bridge-to-term | 0.79% to 0.84%from 0.79%, up to 0.84% | 70% | Most often 2%2% to 2.5% | 1 (4) |
For comparison, 0.79% to 0.99% a month is 9.48% to 11.88% a year in simple terms. The Bank of England's Bank Rate is 3.75% (held on 17 September 2026; next decision 5 November 2026). Most bridging products are priced as a fixed monthly rate set by the lender rather than as a margin over Bank Rate, although some are variable.
Development finance rates at a glance
Indicative published rates for development finance products on our panel, October 2026. Development rates are quoted per year and charged on funds as they are drawn. Leverage is shown as the maximum loan to gross development value (LTGDV) and loan to cost named for each product, where stated.
| Product | Typical rate a year | Maximum LTGDV and loan to cost | Arrangement fee | Lenders (products) |
|---|---|---|---|---|
| Development finance, unregulated | 9% to 10.88%from 7%, up to 18% | LTGDV 65%up to 75% Loan to cost 90%up to 98% | Most often 2%1% to 3% | 50 (75) |
| Regulated development (self-build homes) | 11.7% to 12.84%from 11.4%, up to 13.68% | LTGDV 70% Loan to cost 80%up to 90% | Most often 2%2% to 3% | 3 (3) |
Rates at the top of the range are mostly for higher leverage, smaller schemes or regulated self-build. Senior debt from banks and larger specialist lenders sits towards the bottom. Our guide to LTV, LTGDV and loan to cost explains how each limit is measured.
What drives the cost
Lenders price for risk, and the panel data shows the same pattern across products:
- Charge. Second charge bridging runs 0.93% to 1.07% a month for the middle half of products, against 0.79% to 0.99% on a first charge.
- Property type. Residential-only unregulated bridges start at 0.54% a month; commercial-only products start at 0.75%.
- Land. Land bridging starts at 0.83% a month, and the most common maximum LTV named is 50%, lower than the 75% most common for standard bridging.
- Loan size. Products for loans of £125,000 or less start at 0.94% a month, while products for loans from £500,000 start at 0.64%. Fixed costs such as valuation and legal fees also weigh more heavily on a small loan.
- Leverage. Many lenders publish tiered products, with the rate stepping up as LTV or LTGDV rises.
- Regulation. Regulated bridging, for a home you or close family will live in, starts at 0.53% a month on our panel, with the middle half between 0.59% and 0.93%. Fewer lenders offer it: 14 on our panel, against 49 for unregulated first charge bridging.
- Credit and experience. Adverse credit and a first project can move a case up the range or narrow the lenders available.
Each 0.1% a month on a £250,000 bridge is £250 a month, or £2,250 over nine months, so where a case sits in the range matters as much as the headline "from" rate.
Worked example: the total cost of a bridging loan
An illustrative £250,000 unregulated first charge bridge for 9 months, at the bottom and top of the middle half of products (0.79% and 0.99% a month) with a 2% arrangement fee, the most common fee on our panel. The formulas are:
- Interest retained or serviced = loan × monthly rate × months
- Interest rolled up (compounded monthly) = loan × ((1 + monthly rate) to the power of months, minus 1)
- Arrangement fee = loan × fee %
- Net advance with retained interest = loan minus retained interest minus arrangement fee
| £250,000 for 9 months | At 0.79% a month | At 0.99% a month |
|---|---|---|
| Interest, retained or serviced | £17,775 | £22,275 |
| Monthly payment if serviced | £1,975 | £2,475 |
| Interest, rolled up | £18,347 | £23,178 |
| Arrangement fee at 2% | £5,000 | £5,000 |
| Interest plus arrangement fee (retained or serviced) | £22,775 | £27,275 |
| Interest plus arrangement fee (rolled up) | £23,347 | £28,178 |
| Net advance on day one, interest retained | £227,225 | £222,725 |
Add valuation and legal fees for both sides, and any exit or broker fee, which are quoted case by case. Retained interest costs the same as serviced interest in total but leaves you with less cash on day one; rolled-up interest leaves more cash on day one but costs a little more because it compounds. If the loan is repaid early, interest is usually charged only for the months used, subject to any minimum period. These figures are arithmetic on the ranges above, not a quote. See bridging loan interest rates explained for how each option works.
Worked example: development finance interest
An illustrative scheme with a £500,000 land advance on day one and £1,000,000 of build funding drawn evenly over 12 months, followed by 6 months to sell, at the bottom and top of the middle half of development products (9% and 10.88% a year) with a 2% arrangement fee. The formulas, using simple interest at the annual rate ÷ 12 each month, are:
- Land interest = land advance × monthly rate × 18 months
- Build interest = (build funding × 50% × monthly rate × 12 months) + (build funding × monthly rate × 6 months), because on average half the build is drawn during the build and all of it during the sales period
- Arrangement fee = (land advance + build funding) × fee %
| Illustrative scheme | At 9% a year | At 10.88% a year |
|---|---|---|
| Land interest | £67,500 | £81,600 |
| Build interest | £90,000 | £108,800 |
| Arrangement fee at 2% | £30,000 | £30,000 |
| Interest plus arrangement fee | £187,500 | £220,400 |
Monitoring surveyor, valuation, legal and any exit fees come on top, and rolling interest up monthly adds a little more. A month-by-month cash flow gives a more precise figure; see how much development finance costs and how to write a development appraisal.
Refurbishment and bridge-to-let
Refurbishment bridging is priced close to a standard bridge. On our panel the middle half of light refurbishment products sits between 0.75% and 0.95% a month and heavy refurbishment between 0.8% and 0.95% a month, with arrangement fees most often 2%. The bigger differences are in how the works are funded: whether the lender releases works money in stages, funds all of the works cost and sizes the loan on the value after works. See light vs heavy refurbishment.
Bridge-to-let and bridge-to-term products, where the same lender agrees the longer-term loan at the outset, are a small part of the panel: 4 products from one lender, at 0.79% to 0.84% a month. Most investors instead use a standard or refurbishment bridge and refinance onto a buy-to-let or commercial mortgage, so the rates in the table above apply. See refinancing a bridging loan onto a mortgage.
Fees to watch
- Arrangement fee. Most often 2% of the loan on bridging and 2% on development finance on our panel, with a range of 0% to 5% across bridging products. Some lenders also set a minimum fee in pounds, which matters on small loans.
- Exit fee. Some lenders charge none, others charge a percentage of the loan or, on development, of GDV. Exit fees are not published consistently across the panel, so we do not give a range.
- Valuation and legal fees. Paid by the borrower, quoted case by case and depend on the property and loan size, so we do not give a range.
- Monitoring surveyor. On development and heavy works, an initial report plus a fee per site visit.
- Minimum interest period. Repaying early may still mean paying for a minimum number of months.
- Extension and default interest. Running past the end date costs far more than building headroom into the term.
- Broker fee. Where one applies, it is disclosed before you proceed.
For when each is paid, see bridging loan fees.
How to keep the cost down
- Borrow at a lower LTV where you can: many products step down in price at lower leverage.
- Choose a term with headroom, so you do not pay for an extension or default interest.
- Compare the total cost and the net advance, not the headline rate; a low rate with a high fee can cost more on a short loan.
- Ask how unused retained interest is refunded if you repay early, and about any minimum interest period.
- Check the basis of any exit fee, especially a fee on GDV.
- Have the valuation access, legal pack and exit evidence ready, so delays do not add months of interest.
- Search the whole market: products for the same deal can sit at opposite ends of the ranges above.
Method and last updated
Based on published rates from 83 lenders on our panel (464 products: 54 lenders offering bridging and 50 offering development finance), October 2026. Last updated 19 October 2026.
- Rates are the indicative "from" rates and arrangement fees each lender publishes for each product, as held in the panel that powers our Instant Quotes. Products a lender has switched off are left out.
- "From" and "up to" are the lowest and highest product rates in each group. "Typical rate", the middle half of products, runs from the 25th to the 75th percentile of product rates. We do not publish averages, because products are not weighted by how often they are used.
- Maximum LTV, LTGDV and loan to cost are the limits named for each product, where one is named; not every product names one.
- Exit, valuation and legal fees are not published consistently, so no ranges are given for them.
- Bank Rate is from the Bank of England (3.75%, decision of 17 September 2026, checked 19 October 2026).
Bridge & Build Finance is a whole-of-market broker. We search the market and arrange introductions to lenders; we do not lend. All figures are indicative, not offers, and the rate you are offered depends on the property, the valuation, your circumstances and each lender's checks.
Cite this page
You are welcome to quote figures from this page with a link back to it. Suggested citation:
Bridge & Build Finance, "Bridging loan and development finance rates and costs UK 2026", updated 19 October 2026, https://www.bridgingdevelopment.co.uk/knowledge-hub/bridging-and-development-finance-rates/
To see the lenders whose criteria fit your own deal, with indicative rates side by side, use Instant Quotes.
Common questions
What is the typical bridging loan rate in 2026?
On our panel in October 2026, unregulated first charge bridging starts at 0.54% a month, and the middle half of products sits between 0.79% and 0.99% a month. Second charge, land and small loans sit higher.
What is the typical development finance rate in 2026?
On our panel, unregulated development finance starts at 7% a year, with the middle half of products between 9% and 10.88% a year, charged on funds as they are drawn.
Are regulated bridging loans cheaper than unregulated ones?
Regulated first charge bridging on our panel starts at 0.53% a month, with the middle half between 0.59% and 0.93%, against 0.79% to 0.99% for unregulated. Fewer lenders offer it, and terms are usually shorter.
How much does a £250,000 bridging loan cost over 9 months?
At 0.79% to 0.99% a month with a 2% arrangement fee, interest plus the fee comes to about £22,775 to £27,275 if interest is retained or serviced, before valuation, legal and any exit fees.
How much can I borrow on bridging and development finance?
The most common maximum named on our panel is 75% LTV for standard bridging, 50% for land, and 65% of GDV and 90% of costs for development finance. Some products go higher, at a higher price.
Do bridging rates follow the Bank of England base rate?
Not directly. Bank Rate is 3.75%, but most bridges are priced as a fixed monthly rate set by the lender. Some products are variable, so check which applies.
This guide is for general information only and should not be treated as legal, tax or financial advice. Lender requirements depend on the property and your circumstances.
