Compare bridging loans rates in the UK 2023

We compare bridging loan providers and rates to bring you the best bridging loan for your needs.

Compare bridging loans and rates

Table: sorted by monthly interest rate

Name Product Maximum LTV Loan term Loan amount Monthly interest rate
Mint Bridging Bridging Loan
Mint Bridging Bridging Loan
1 month to 24 months
£75,000 to £2,500,000
0.4% to 1.06%
United Trust Bridging Loan
United Trust Bridging Loan
1 month to 36 months
£125,000 to £25,000,000
0.48% to 1.1%
Precise Bridging Loan
Precise Bridging Loan
1 month to 18 months
£50,000 to £1,000,000
0.49% to 0.69%
Lend Invest Bridging Loan
Lend Invest Bridging Loan
3 months to 18 months
£75,000 to £15,000,000
0.49% to 0.69%
MT Finance Bridging Loan
MT Finance Bridging Loan
1 month to 12 months
£50,000 to £1,500,000
0.49% to 0.85%
Octopus Bridging Loan
Octopus Bridging Loan
1 month to 23 months
£50,000 to £25,000,000
0.55% to 0.9%
Glenhawk Bridging Loan
Glenhawk Bridging Loan
3 months to 18 months
£150,000 to £2,000,000
0.55% to 0.89%
MFS Bridging Loan
MFS Bridging Loan
3 months to 24 months
£100,000 to £30,000,000
0.59% to 0.99%

Compare up to 4 providers

Overall representative example for regulated bridging loans
If you borrowed £195,000 over a 1-year term at 8.40% p.a. (fixed), you would make 12 monthly payments of £1,399.93 and pay £211,799.16 overall, which includes interest of £16,799.16, a broker fee of £995 and a lender fee of £3995.00. The overall cost for comparison is 11.6% APRC representative.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

If you need short-term finance for a property purchase, whether it’s to bridge a gap between buying and selling your main home or to snap up a bargain at auction, then a bridging loan is probably what you’re after. Our guide explains the facts about bridging loans and helps you compare the market.

What are bridging loans?

Bridging loans are short-term loans that are often used by home buyers who have found a home they want to buy, but haven’t yet found a buyer for the home they live in and want to sell.

Essentially, they “bridge” the gap between the sale of your current home and the purchase of a new one.

Who are bridging loans suitable for?

Typically, bridging loans are aimed at property developers and landlords, who are in the real estate industry. But they can be used in several different circumstances including:

  • The purchase of another property whilst waiting for a sale. Also known as chain break finance.
  • A purchase at auction and there’s not enough time to arrange a mortgage.
  • A property in poor repair and not suitable for mortgage until work is completed.
  • Land acquisition for development.
  • The release of capital from a property pending a sale.
  • Buying a property with the intention of quickly upgrading it and selling it for a profit. This is also known as property flipping.

How do bridging loans work?

For example, let’s say you own a home worth £250,000 and have £100,000 remaining to pay off on the mortgage.

The new home you want to buy costs £400,000 but you need to move into the house within two months.

Selling your existing home in that time frame isn’t realistic and even though you have £15,000 in savings to cover the expenses and fees, you still need the money to buy the new home.

This is where a bridging loan can help cover the time until you sell your current home.

Types of bridging loans

  • Closed-bridge loans. This type of bridging loan is for those who have a clear schedule on how long they will need the loan for. These are useful for someone selling a property who’s exchanged contracts, but is waiting for completion of the sale to get the money to repay the bridging loan.
  • Open-bridge loans. These loans are riskier as they have no set schedule for when the loan is going to be settled. These loans are usually used by people who find a new property they want to buy but are still waiting on selling their current property. These can be costly as the longer it takes for them to sell their existing property, the more they’ll pay in interest.

Learn more about the differences between open and closed bridging loans.

Bridging loan interest rates and fees

Bridging loans are typically a stop-gap measure for a short period of time. As a result, most bridging loans come with higher interest rates than you might get on a traditional mortgage and are often advertised as the rate per month. For example, a rate of 1.5% a month translates to 18% APR.

Types of interest rates on bridging loans

  • Monthly interest. You pay interest on your loan each month. This is separate to the total balance of your loan (the amount you borrowed), which you repay at the end of your term.
  • Rolled up or deferred interest. Rather than make monthly interest payments, you ‘roll up’ all of the interest due on your loan and pay it off at the same time as you repay your loan balance at the end of the term.
  • Retained interest. You borrow the interest due on your loan from your lender at the same time as you apply for the original loan. This covers the interest that would be due for a set number of months and is repaid with the loan at the end of your borrowing term.

Bridging loans also often come with hefty administration fees. For example, a fee of 1% to arrange the loan and another 1% to exit from it would add £3,000 to a £150,000 loan, before you even take interest into account.

Pros and cons of bridging loans


  • Avoid paying for two mortgages. The main feature of a bridging loan is that it will allow you to avoid taking out another mortgage.
  • Shorter processing time. Bridging loans are a lot quicker to process than traditional mortgages, so they’re useful when time isn’t on your side.


  • You will need to know how much your home will sell for. When you get a bridging loan you should be able to accurately predict how much your old property will sell for. If it doesn’t sell for as much as you plan then you may find that you don’t have enough money to pay off the loan and buy the new home.
  • Higher interest rates. Bridging loans typically have higher interest rates than traditional mortgages.
  • You could face exit fees. If your current mortgage is a fixed rate mortgage, you may have to pay exit fees associated with exiting the loan early.

Bridging loan example

An overall representative example for regulated bridging loans
Based on borrowing£195,000 over 1 year
Interest rate8.40% p.a. (fixed)
Lender fee£3995.00
Overall cost of comparison11.6% APRC
Broker fee£995
Total amount repayable£211,799.16 inc. interest of £16,799.16

How do I get a bridging loan?

Bridging loans tend to be offered by specialist loan providers rather than traditional high street mortgage lenders. They are not as widely available as mortgages. But as with mortgages, there are brokers in the bridging loan market who will be able to advise you on what the best loan would be for your particular circumstances.

How long does it take to get a bridging loan?

It is usually quicker to organise and receive a bridging loan than it is a mortgage, as they are designed for short-term borrowing. It normally takes a few weeks to process an application, but in some cases it only takes a few days. However, providers will still conduct thorough financial checks before lending to you.

How much can I borrow?

Bridging loans can start from around £5,000 and go up to £250 million. The amount you will be able to borrow will depend on your personal financial circumstances and the value of the property you are borrowing against. Most providers will also only lend on a maximum loan-to-value (LTV) ratio of 80%.

Alternatives to bridging loans

A bridging loan should be considered as an option of last resort due to its high interest rates and fees, and the uncertainty of knowing whether you’ll be able to pay it off after the sale of an existing property.

Some alternatives to bridging loans include:

  • Remortgaging. If you’ve built up equity in your existing property, you can remortgage to access that equity and invest it in the purchase of a new property.
  • Personal loans. If you’re waiting on the sale of your existing property, you can get a personal loan to cover the deposit of the new property and pay it off once your existing property is sold.
  • Temporary loan from family member. If you have a family member that can loan you the deposit on the new property, till your previous property is sold. You won’t be charged interest and will save on fees.
  • Buy-to-sell mortgages Buy-to-sell mortgages are a short-term finance arrangement for buying property with the intention to sell it.

Banks’ policies regarding bridging loans

We contacted the banks below to ask if they offered bridging loans and collected the responses.

ProviderPolicy regarding bridging loans
NationwideNot offered
HSBCNot offered
RBSNot offered
Lloyds BankNot offered
SantanderNot offered

How to choose the best bridging loan company

The best bridging loans company for you will be the one with a product and a lending process that meets your individual needs. So when you’re researching which company to go with, bear in mind the following points:

  • Type of bridging loan you require. Residential bridging loans relate to a property you are planning to live in and these are regulated by the FCA. Commercial bridging loans relate to buy-to-let, investment and commercial properties and these are unregulated. Learn more about the difference between regulated and unregulated bridging loans.
  • The amount you need to borrow and the LTV. Lenders have minimum and maximum borrowing limits for bridging loans. They will also lend up to a maximum LTV (loan to value) ratio; for example, 70% of what the property costs.
  • How long you need to borrow the money for. Bridging loans are a form of short-term finance, but the length of the loan term on offer can vary between one and 24 months.
  • How quickly you need access to funds. If you’re in a hurry with a property purchase, can the lender give you quick Decision in Principle, and then deliver the funds to you in a fast turnaround time?
  • If you’re using a specialist broker. Some lenders will only consider your bridging loan application if it has come via a specialist broker (also called an intermediary), while others will let you apply directly to them. If you’re new to bridging loans, or want some assistance searching the whole market, you may decide that using a broker is the best option for you anyway. Some brokers can even help those with bad credit find a bridging loan.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

More guides on Finder

  • Chain break finance

    Learn everything you need to know about chain break finance – a type of bridging loan that stops you losing your dream home if the sale of your existing one falls through.

  • Fix and flip

    Read our in-depth guide to fix and flip and how this type of property investment works, including the factors you need to consider, the risks to be aware of and how to finance it.

  • Commercial bridging loan

    Everything you need to know about commercial bridging loans. We look at when they’re useful, how they work and what to be aware of before taking one out.

  • Hard money loans: Short-term finance in the UK

    Learn everything you need to know about hard money loans – also known as bridging loans. Find out how they work, what they can be used for and their benefits and downsides.

  • 100% bridging loans: How to get one

    Read our in-depth guide to 100% bridging loans, including how bridging loans work, how to borrow 100% of the property’s value, how to get the best deal and the pros and cons.

  • Compare bridging loan rates for property development

    Everything you need to know about the benefits of using a bridging loan to fund a property development project if you don’t have the cash already available.

  • Compare bridging loans to buy land

    Find out if a bridging loan could be a good option versus other types of finance if you’re buying land.

  • Probate loans

    We explain how probate loans can be a valuable tool for dealing with financial issues that can come up when dealing with someone’s estate.

  • Compare residential bridging loan rates

    Everything you need to know about residential bridging loans, including what to consider before taking one out, what they can be used for and their pros and cons.

  • Auction finance: Compare bridging loan rates

    Everything you need to know about auction finance, including why it can be a good alternative to a mortgage, its downsides and where to get the best deal.

    Ask an Expert

    You are about to post a question on

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

    By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

    Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
    Go to site