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How Much Does a Bridging Loan Cost?

Bridging Loans Costs & Interest Rates

Bridging Finance — Costs & Rates

A bridging loan has three main costs: monthly interest, an arrangement fee, and an exit fee, plus valuation and legal costs. This page sets out real numbers, including a full worked example, so you can price a bridge before you speak to anyone. We are a direct lender; these are the charges we actually apply.

Costs & RatesDirect LenderNo Hidden Fees

Bridging loan interest rates

Quoted Per Month · From 0.79%

Bridging interest is quoted per month, not per year. Our rates start from 0.79% per month. Three things move the rate: loan-to-value (borrowing 50% of the property's value prices better than 70%), the security (a lettable residential investment prices better than a vacant commercial unit), and the exit (a signed sale contract is stronger than "we plan to refinance"). Anyone quoting a single rate without asking about these is not quoting seriously.

How the interest is paid

Most borrowers retain the interest: it is deducted from the advance up front, so there is nothing to pay during the term, useful when the point of the bridge is that cash is tied up. If you have income, you can service it monthly or quarterly instead and borrow more of the gross. We will structure whichever fits the deal.

Rates From0.79%/month
Arrangement Fee2%typical
Exit Fee1%typical
ValuationAt cost
Hidden FeesNone

The fees

Every charge, up front.

What you should not see: admin fees, fund management fees, or charges invented after the offer. If a quote has them, ask why.

  • Arrangement fee typically 2% of the loan, usually deducted from the advance
  • Exit fee typically 1%, paid when the loan redeems
  • Valuation fee at cost, set by the surveyor and the property, not marked up
  • Legal fees you pay both sides' solicitors, as with any secured loan

Real numbers

A full worked example.

Loan (gross)£500,000
Term12months
Interest at 0.79% per month, retained£3,950 × 12 = £47,400
Arrangement fee (2%)£10,000
Exit fee (1%), paid at redemption£5,000
Valuation and legal feesAt cost — depends on the property
Total cost of borrowing (excl. valuation/legals)£62,400
Day-one net advance (interest & fee retained)£442,600

Redeem in month 8 instead of month 12 and unused retained interest is rebated, so the real cost falls.

Keeping the cost down

What makes a bridge cheaper.

Borrow at lower LTV

If you can, it is the biggest single lever on rate.

Evidence the exit early

Sale agreed, refinance decision in principle, or a dated liquidity event, before you apply.

Redeem early

With retained interest, unused months come back to you.

Go direct

A broker layer typically adds 1–2% to the cost of the same loan. (Brokers who work with us, fees respected.)

Common questions

Frequently asked questions.

How much does a bridging loan cost?
Expect three main costs: monthly interest (from 0.79% per month with us), an arrangement fee (typically 2% of the loan) and an exit fee (typically 1%), plus valuation and legal costs at cost. On a £500,000 loan over 12 months that totals around £62,400 before valuation and legals.
What are bridging loan interest rates in 2026?
Bridging rates are quoted monthly, not annually. Our rates start from 0.79% per month; what you pay depends on loan-to-value, the property type and the strength of your exit.
Do I pay bridging loan interest monthly?
Not necessarily. Interest can be retained (deducted from the advance so there is nothing to pay during the term), serviced (paid periodically), or a combination. Most borrowers choose retained interest.
Are there hidden fees on bridging loans?
There should not be. A reputable lender sets out interest, arrangement fee, exit fee, valuation and legal costs in the offer. Watch for admin fees, fund-management fees and steep default rates in the small print, and ask any lender what happens to the rate if you run past term.
Is a bridging loan cheaper through a broker?
A broker adds a fee (often 1–2%) on top of the lender's charges. Going direct to a lender removes that layer, we are a direct lender, so the terms you see are the terms you get.

Price your own deal

Put your numbers in.

The loan calculator gives an indicative cost in under a minute, or send the deal itself and we will quote actual terms the same day.

Calculate how much I can borrow

Do you want to understand the potential cost of your bridging loan?

Get an idea of the monthly cost and fees involved with a few details using our loan calculator

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Berkeley Credit specialises in fast bridging loans UK wide, short-term finance, and property funding solutions tailored to your needs.


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Copyright © 2026 Berkeley Credit I Company No: 16111009 I FCA (MLR) Ref: 1029007
Berkeley Credit Limited (‘Berkeley Credit’) is registered in England & Wales. Company Number 16111009. Registered Office: 27 Hill Street, Mayfair, London, W1J 5LP. Berkeley Credit is not authorised by the Financial Conduct Authority but is registered with the Financial Conduct Authority under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. FCA Registration number 1029007. Berkeley Credit provides loans for business and investment purposes only, secured by first or second charge over non-owner-occupied property in England and Wales. These loans are not regulated by the Financial Conduct Authority. As with any secured lending, the property used as security may be at risk if the loan is not repaid.