Bridging loans offer rapid access to capital, but this convenience comes at a cost. Market research from June 2025 shows that bridging loan rates in the UK typically range from 0.4 % to 2 % per month, equating to an annual rate of roughly 4.8 % to 24 % . The current average is around 0.72 % per month (approximately 8.64 % per annum) .
Rates are influenced by several factors. Loan amount and duration play a role, with larger or shorter‑term loans sometimes attracting different pricing. Borrowers with strong credit histories or lower loan‑to‑value (LTV) ratios are typically offered lower rates . The type of property and its condition also matter—prime residential assets can secure more favourable terms than complex commercial projects. Finally, general market conditions and individual lender criteria affect pricing.
For investors, the key is to treat bridging finance as a short‑term tool. A clear exit strategy—such as a future sale, remortgage or refinancing—is essential to avoid prolonged exposure to high monthly interest. Comparing offers, negotiating fees and engaging experienced brokers can all help secure more competitive rates.