The interest rates for bridging finance can vary depending on your borrowing needs and circumstances.

Factors like the value of the property used as security, the LTV% and your personal income can all affect the interest rate you receive. It is also important to budget for any additional fees such as exit fees and early repayment charges.

When you borrow from us, you benefit from:

  • No personal income requirement
  • No exit fees
  • No early repayment charges
  • Up to 75% loan to value
  • Rates from 0.99% for 1st charge and 2nd charge per month
  • Serviced and rolled interest available
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Examples of bridging loan interest rates

Naturally your exact interest rate will be unique to your needs and circumstances. If you want an exact quote, simply complete our online enquiry form, or give us a call.

In the meantime, here is a rough guide to the typical rates you could expect:

Important Note: to make your life easier, all of our bridging products come with the ability to refinance to a buy-to-let mortgage (application approval required). This can help your exit strategy.

Residential bridging loans

If there is no work required to the property:

• Loans available from £25,000 up to £500,000
• Up to 75% LTV
• Rates starting at 0.99% per month

Light refurbishment bridging loans

For investors looking to refresh a property without requiring planning consent i.e. kitchens, bathrooms, rewiring, plumbing, decorating etc:

• Loans available from £25,000 up to £500,000
• Up to 75% LTV
• Rates starting at 0.99% per month

Heavy refurbishment bridging loans

For properties requiring significant structural improvements and planning permissions such as wraparound extensions, loft conversions etc:

• Loans available from £10,000 up to £500,000
• Available as a 1st charge only
• Up to 75% LTV
• Rates from 1.15% per month

Micro bridging loans

Multi-purpose, lower capital borrowing:

• Loans available from £25,000 up to £49,999
• Up to 75% LTV
• Rates from 0.99% per month

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Simply fill out the form above, or call us to discuss your needs now.

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Interest rates for bridging finance...

Bridging loans let you borrow large amounts of money over short periods of time without having to pay early repayment penalty charges. This flexibility usually makes them more expensive than other forms of borrowing such us a typical mortgage.

All loans require repayment, and the lender will decide the cost of a loan based on the risk of the loan not being repaid. The higher the risk to the lender, the higher the interest rate you will pay.

To reduce the risk to the lender, these loans are secured against a property. This means that the lower the LTV percentage (or “loan to value” ratio), the less risk there is for the lender. LTV is the value of your property, versus the amount of money you borrow against it. The greater the difference, the lower the LTV.

Having a lower LTV means there is less risk to the lender – this could allow you to get a lower rate of interest for your loan.

Having a higher LTV means more risk for the lender – this usually means you will pay a higher rate of interest.

Typically, the maximum LTV ratio a lender will consider is 75%.

Exit strategies / Exit plans for bridging loans…

In addition to the LTV ratio, lenders will also lower their risk by ensuring you have something called an “exit plan” (also known as an “exit strategy”) in place before agreeing your loan.

An exit strategy is your specific plan to raise the money to repay your loan, by the end of your repayment period.

The two most common exit strategies are:

  • Selling the property and repaying the loan from the proceeds
  • Transferring the debt to a longer term form of finance (usually a mortgage)

It is essential to have an exit strategy when applying for your loan, otherwise you are likely to pay a much higher rate of interest, or struggle to get approved for the loan.

"Rolled up interest rates" and “Serviced interest rates"

There are two different ways of paying interest on your bridging finance: “rolled up interest” and “serviced interest” (sometimes known as “serviced monthly interest”).
It is important to make sure that you choose whichever type of interest payment method that suits your circumstances and exit plan.

Serviced interest:

Serviced monthly interest is the most common, “typical” why of paying interest. You make monthly repayments to the lender, which include your contributions towards repaying the interest.

Rolled up interest:

Rolled up interest means that there is no interest included in your monthly repayment, and the total amount of interest is repaid as a lump sum at the end of the term of the loan.

We can provide both serviced and rolled up interest rates – if you want to discuss which option would suit you better, feel free to give us a call or make an enquiry online.