Cheapest Bridging Finance UK: What Drives the Rate
In short: The cheapest bridging finance goes to the lowest-risk cases: low loan-to-value (under ~60%), a clear evidenced exit, and strong residential security. Indicative market rates start around 0.55% per month and rise with risk. Your rate depends on the case; CoreFi matches it to the lender pricing it best.
Bridging finance is priced on risk, so the cheapest rates go to the safest cases. The biggest levers are loan-to-value (lower is cheaper), the quality of security (standard residential prices keenest), the strength and evidence of your exit, the charge (a first charge beats a second), and the term.
As an indicative market guide, rates run from around 0.55% per month for clean, low-LTV residential cases up to 1.5% or more for higher-risk or specialist security. These are market ranges, not a quote: your actual rate depends on your case. Rather than chase a headline rate, CoreFi packages your deal and matches it to the lender that prices that profile best, which is usually where the real saving is.
Key Benefits
- Keep loan-to-value low (under ~60% prices best)
- Use standard residential security where you can
- Have a clear, evidenced exit (sale or refinance)
- A first charge is cheaper than a second
- Shorter, well-defined terms price more keenly
Frequently Asked Questions
How much does bridging finance cost?
As an indicative market range, monthly interest runs from around 0.55% to 1.5%+, plus arrangement and exit fees and legal/valuation costs. The exact rate depends on loan-to-value, security and exit, so the best guide is a matched quote for your case.
Why are some bridging loans so much cheaper?
Price tracks risk. Low loan-to-value, strong residential security, a clear exit and a first charge all pull the rate down; high LTV, unusual security or a weak exit push it up.
What fees are there besides interest?
Typically a lender arrangement fee (often 1-2%), valuation and legal fees, and sometimes an exit fee. We set out the full cost of each option before you commit.
How do I get the cheapest rate?
Lower your LTV, evidence a clean exit, and let a broker match the deal to the lender that prices that profile best. The right lender match usually saves more than haggling one lender's rate.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.