{"id":152233,"date":"2018-12-11T16:49:45","date_gmt":"2018-12-11T16:49:45","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=152233"},"modified":"2026-02-18T09:09:45","modified_gmt":"2026-02-18T09:09:45","slug":"bridging-loans","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/mortgages\/property-flipping\/bridging-loans","title":{"rendered":"Compare bridging loans rates in the UK 2026"},"content":{"rendered":"
Overall representative example for regulated bridging loans<\/strong>
If you borrowed \u00a3275,000 over a 1-year term at 9.55% p.a. (fixed), you would make 12 monthly payments of \u00a32,237.84 and pay \u00a3301,854.08 overall, which includes repayment of the net loan, interest of \u00a320,359, a broker fee of \u00a3995 and a lender fee of \u00a35,500. The overall cost for comparison is 12.6% APRC representative.<\/div><\/article>
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.<\/div><\/article>

Best bridging loan rates for May 2026<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Rank<\/th>\nProvider<\/th>\nMinimum monthly interest rate<\/th>\n<\/tr>\n<\/thead>\n
1<\/th>\nOctopus<\/td>\n0.55%<\/td>\n<\/tr>\n
2<\/th>\nMarket Harborough Building Society<\/td>\n0.57%<\/td>\n<\/tr>\n
3<\/th>\nUnited Trust<\/td>\n0.61%<\/td>\n<\/tr>\n
4<\/th>\nPrecise<\/td>\n0.62%<\/td>\n<\/tr>\n
5<\/th>\nGlenhawk<\/td>\n0.64%<\/td>\n<\/tr>\n
6<\/th>\nHampshire Trust Bank<\/td>\n0.65%<\/td>\n<\/tr>\n
7<\/th>\nStreamBank<\/td>\n0.7%<\/td>\n<\/tr>\n
8<\/th>\nAllica Bank<\/td>\n0.71%<\/td>\n<\/tr>\n
9<\/th>\nRomaFinance<\/td>\n0.75%<\/td>\n<\/tr>\n
10<\/th>\nTogether<\/td>\n0.75%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>

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.<\/p>

What are bridging loans?<\/h3>

Bridging loans started out as short-term loans which could be used by home buyers who had found a home they wanted to buy, but hadn’t yet found a buyer for their current home that they live in and want to sell.<\/p>

Essentially, these loans “bridge” the gap between the sale of a current home and the purchase of a new one.<\/p>

But these days, they’re more commonly used when a property is being developed \u2013 to bridge the gap between purchase of a premises and being able to live in it (once it’s mortgageable), sell it, or rent it out. They act like a short-term mortgage, but rather than having monthly repayments, you make one big repayment after a set period.<\/p>

Who are bridging loans suitable for?<\/h3>

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:<\/p>