How much does a bridging loan cost?

Wednesday January 25, 2023

What do bridging loans cost?

The key to finding the right bridging loan for your budget is to ensure that the short term costs are more than compensated for by the long-term financial and personal benefits.

Bridging loans can be expensive due to their short-term nature and higher risk for lenders. Certainly, more expensive than a typical residential mortgage.

Interest is charged by the lender monthly rather than annually due to the short-term of the loan.

Typical interest rates for bridging loans can range from 0.48% to 1.5% per month, depending on the lender and loan terms (source: Moneyfacts 24/01/2023)

Some lenders may offer variable rates, which could start at a lower rate but then increase over time.

Additional fees to consider include set-up fees, exit fees, administration or repayment fees, legal fees, valuation fees, and financial advisor fees.

You will be expected to have an exit plan in place so that the loan can be repaid quickly. This will be an essential part of the terms of your bridging loan.

Speak to a bridging loan advisor to get an understanding of all the costs associated with a loan and to negotiate the best possible loan terms and rates.

At, we work with a variety of lenders and private banks to ensure that our clients get the most competitive rates and the best loan terms for their specific circumstances.

Our insights

We are the UK’s leading specialist in delivering innovative and bespoke financing solutions to global clients.


Specialists in creating innovative and bespoke funding solutions.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home. is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Ltd is a licensed credit broker, and not a lender. Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.
Make An Enquiry

London Office (Main):


London Office (Main):

Largemortgageloans is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London