Best Bridging Loan Lenders
Best Overall Bridging Loan Lender
Octopus Real Estate. We give it best overall because the 0.55%/month residential rate, the lowest here, arrives with no exit fee and no early repayment charge. That is rare. A low headline rate usually hides a catch on the way out.
The real edge is the Fast Track process: an AVM plus title indemnity insurance skips the physical valuation and the legal search wait. For a clean, habitable residential case, that is the speed advantage.
Read the exclusions before you bank on it. Octopus declines new builds, defined as anything registered on the Land Registry in the last two years, and needs a minimum 85-year lease. Loans run £50,000 to £25m.
Best for Fast Completion
Funding 365. We give it best for fast completion because it is a principal lender. Principal lending is what makes it fast. Yes means yes: no external credit committee can overturn the decision at closing, so the terms you get on day one are the terms that complete.
That matters when the clock is real. When you are seven days from a completion deadline and a funded lender refers your case up the line, you can lose the purchase. A principal lender removes that referral entirely.
The Stepped Rate Bridge tempts at 0.39%/month, but read the maths. It only beats the 0.69% flat rate if you exit by month five or six. After month six it jumps to 1.15%/month plus a 1.15% exit fee. Delay and it costs more, not less.
Best for Auction Purchases
United Trust Bank. We give it best for auctions because an auction gives you a hard 28-day clock and UTB clears the two things that usually break it: the valuation and the legal pack. AVM valuations skip the physical survey, and instructing solicitors fast removes the search delay.
When the gavel falls on a Tuesday you have exchanged already and the deposit is gone. Miss the 28-day deadline and you forfeit it. UTB is built to complete inside that window, where a high-street lender needing six to twelve weeks simply cannot.
The dual FCA and PRA authorisation is the deeper reason we trust it for auctions: bank-grade underwriting that does not wobble at the last minute. No exit fees; rates from 0.57%/month; loans up to £15m.
Best for Property Chain Breaks
LendInvest. We give it best for chain breaks because it funds the purchase fast and then gives you a built-in exit. When the chain collapses on a Thursday and you need to complete the following Friday, LendInvest can move at that speed.
Bridge-to-Let is the part that earns the pick. It funds the buy now and terms out onto a LendInvest buy-to-let mortgage later, so you are not scrambling for a separate refinance under pressure.
One caveat we would flag: the exit rate onto that buy-to-let is indicative, not guaranteed. You choose from current rates at the transition point, and you are free to refinance elsewhere. Loans up to £30m; Bridge-to-Let from 0.60%/month.
Best for Regulated Bridging Loans
Octopus Real Estate. We give it best for regulated bridging because it pairs the lowest rate here, 0.55%/month, with the FCA permissions a regulated loan demands. When the security is your own home, the loan falls under MCOB and a non-bank lender without those permissions cannot write it at all.
Regulated bridging is slower by design. Expect affordability checks and a cooling-off period you cannot skip, so build in four to six weeks rather than the days an unregulated case can take.
Octopus offers it first and second charge, up to 70% LTV, with no exit fees. The institutional backing is what keeps the process consistent across that longer timeline.
Best for Refurbishment Projects
LendInvest. We give it best for refurbishment because the dedicated refurb tier reaches 85% LTV, above the 70 to 75% ceiling at most lenders. That extra leverage leaves more of your own cash free for the works themselves.
It is sized for light refurbishment: a property missing a working kitchen or bathroom, or one needing modernisation, where no building regs or planning are required. Heavier structural jobs belong on development finance instead.
Know the exit risk before you draw it. The Bridge-to-Let term-out depends on the finished property letting and passing the rental cover test. If it will not let, that exit fails and you are back to selling. Refurb, development, and standard bridging sit with one lender.
Bridging Loan Lenders Reviewed
Octopus Bridging Loans
Funding 365 Bridging Finance
LendInvest Bridging Loans
MT Finance Bridging Loans
United Trust Bridging Loans
How to Compare Bridging Loan Lenders
Rate, Fees and Total Cost
Compare the all-in cost, not the headline rate. The number that decides what you repay is the arrangement fee (1 to 2%), any exit fee (0 to 1.5%), and valuation and legal costs on both sides.
Here is the trap novices fall into. The arrangement fee is added to your loan, then interest and the exit fee are charged on that larger gross figure, not on the cash you received.
So ask one question before you sign: is the exit fee calculated on the gross loan or the net advance? On a six-figure facility that single answer can move the final bill by thousands.
When you model a £500,000 loan over six months at 0.79%/month with a 1.5% arrangement fee, you are near £31,000 in financing costs before valuation and legal. The table below shows where the money goes.
| Lender | Starting Rate | Arrangement Fee | Exit Fee |
|---|---|---|---|
| Octopus Real Estate | From 0.55%/month | Not published | None |
| United Trust Bank | From 0.57%/month | 2% + £195 to £495 admin fee | None |
| LendInvest | From 0.60%/month | 2% | Not published |
| Funding 365 | From 0.64%/month | Not published | None (standard products) |
| MT Finance | From 0.90%/month | Not published | Not published |
| Data verified April 2026. Rates are indicative starting rates; your rate depends on LTV and credit profile. | |||
Speed and Completion Timescale
Speed comes from removing the valuation and legal bottlenecks. Most specialists approve in 24 to 48 hours and fund in two to four weeks; an AVM at Octopus or United Trust Bank skips the physical survey.
The AVM is not automatic, though. It needs standard, habitable residential stock in a data-rich area. A non-standard build, a rural property, or anything unmortgageable drops back to a full survey.
That fallback is where time goes. When the survey slips and you are still waiting for the valuer the week before completion, the deal stalls and the deadline does not move with it.
A lender that can complete in one week is not the same as one that usually does. That gap is exactly where deadlines slip.
So before you bid at auction, ask for the average completion time on cases like yours, not the best case. When you are committed to a 28-day deadline, the routine timeline is the only number that protects your deposit.
| Lender | Decision Speed | Typical Completion | AVM Available |
|---|---|---|---|
| Octopus Real Estate | Fast | 2 to 4 weeks | Yes, up to 70% LTV |
| United Trust Bank | Fast | Fast completions | Yes |
| LendInvest | Fast, multiple tiers | 2 to 4 weeks | Varies by tier |
| Funding 365 | Fast, principal lender | Fast | Not specified |
| MT Finance | Fast, asset-based | Fast | Not specified |
Lending Criteria and Flexibility
Three criteria decide your shortlist: how high your LTV goes, whether your credit file is clean, and what entity you borrow through. Standard bridging tops out at 70%; Octopus and UTB reach 75%, LendInvest 85% for refurbishment.
If your credit file is the sticking point, MT Finance is the only lender here that does not credit score. No credit scoring. That is the differentiator: the underwriting is purely asset-based, on the property and the exit, full stop.
That flexibility is priced. MT Finance starts around 0.90%/month against United Trust Bank near 0.57%, so a CCJ or active arrears costs you roughly a third more per month, not a rejection.
When you borrow through a SIPP, the field narrows to one. UTB’s dual FCA and PRA authorisation is what trustees and SIPP advisers will accept; non-bank lenders cannot write SIPP-secured bridging at all. We rate it the strongest option for LLPs, SPVs, trusts, and SIPPs alike.
| Lender | Max LTV | Adverse Credit | Complex Entities | Regulated |
|---|---|---|---|---|
| Octopus Real Estate | 75% | Case by case | Standard | Yes |
| United Trust Bank | 75% | Case by case | LLPs, SPVs, trusts, SIPPs | Yes |
| LendInvest | 85% (refurb) | Case by case | Standard | Yes |
| Funding 365 | Not published | Case by case | Standard | No (unregulated only) |
| MT Finance | 70% | Yes, no scoring | Standard | Yes |
Bridging Loan Costs and Fees
Bridging loans are among the most expensive short-term finance products, so it pays to know what you are signing up for. Your total cost has four components: monthly interest, arrangement fee, exit fee (where charged), and valuation and legal fees.
Interest types. How you pay the interest is your call, and it changes your cash flow more than the headline rate does. The table below compares the three main structures so you can match one to your situation.
| Interest Type | How It Works | Cash Flow Impact | Best For |
|---|---|---|---|
| Rolled-up | Added to loan balance; paid in full on exit | No monthly payments | Borrowers with no monthly income during the bridging period |
| Retained | Deducted from loan at drawdown; you receive less upfront | Lower net loan received | Short terms where the upfront deduction is manageable |
| Serviced | Paid monthly like a standard mortgage | Regular monthly cost | Borrowers with income who want to reduce the exit lump sum |
At 0.79%/month with a 1.5% arrangement fee and rolled-up interest: total interest £23,700; arrangement fee £7,500; total cost approximately £31,200 before valuation and legal. At 0.55%/month (Octopus Real Estate): total interest £16,500. The saving compared to a 0.79%/month lender is roughly £7,200.
Always ask the lender for a full cost illustration before you commit. The headline monthly rate will not show you the all-in cost, and the difference is the part you actually have to repay.
Bridging Loan Eligibility
To qualify, you will generally need: a property (residential, commercial, semi-commercial, or land with planning permission) to put up as security; a first or second charge on that property; a credible exit strategy; and a loan of at least £50,000 to £100,000 depending on the lender.
LTV limits. How much you can borrow against the property depends on the lender. Standard bridging tops out at 70% LTV in most cases; Octopus Real Estate and United Trust Bank go to 75%, and LendInvest reaches 85% for refurbishment. Expect to pay more the higher you push it.
Regulated vs unregulated. If the property you are bridging is your own home, the loan is regulated under FCA MCOB rules. Build in four to six weeks: regulated bridging carries affordability checks and a mandatory reflection period you cannot skip.
Funding 365 offers unregulated loans only, so it is off the table if you need a regulated product. Every other lender in this comparison covers both, giving you more room to manoeuvre.
Open vs closed bridging. You will be quoted on a closed basis if you have a confirmed exit date (a contracted sale or mortgage offer in hand) and on an open basis if your timing is uncertain. Most lenders accept open bridges, but at a higher rate or lower LTV.
Exit strategy. Every application needs a documented exit, and the lender will ask you to evidence it: a contracted sale, a confirmed mortgage offer, or refinancing from a named lender. We would always line up a backup exit too; it strengthens your case if the primary falls through.
When a Bridging Loan May Not Be Right
Bridging is expensive and short-term, and we would not reach for it by default. If any of the alternatives below fit what you are doing, they are likely to cost you significantly less.
Commercial mortgage. If your purchase is not time-critical and you will occupy the property or hold it as an investment, a commercial mortgage gives you longer terms and far lower rates. The trade-off is speed: allow eight to twelve weeks for completion.
Business loan. Borrowing under £25,000? An unsecured business loan is usually cheaper and faster for you than bridging, which is just as well, since most specialist bridging lenders will not look at anything below £50,000 to £100,000.
Development finance. If your project means major construction or a change-of-use conversion rather than a light refurbishment, development finance is built for those timelines. It costs much the same as bridging, but the phased drawdowns will suit you better.
Asset finance. If what you actually need is equipment, vehicles, or machinery rather than property, asset finance is secured on the kit itself and structured for the job. A bridging loan against property is the wrong tool for that purchase.
Frequently Asked Questions
How do I compare bridging loan lenders in the UK?
Compare monthly interest rate, arrangement fee, exit fee, maximum LTV, whether the loan is regulated or unregulated, and the lender’s typical completion speed. Always request a full cost illustration: the headline monthly rate rarely reflects the true total. For adverse credit or complex entity structures, check eligibility before applying.
What is the typical interest rate for a UK bridging loan?
Monthly rates in this comparison range from 0.55% (Octopus Real Estate) to 0.90% (MT Finance). Lower rates go to borrowers with clean credit, lower LTV, and strong security. Annual equivalent rates typically run from 6.8% to 11%+ when compounded monthly.
How quickly can I get a bridging loan in the UK?
Most specialist lenders can approve within 24 to 48 hours and fund within two to four weeks. AVM valuations at United Trust Bank and Octopus Real Estate can reduce this further for eligible standard residential properties. Regulated bridging loans, covering your primary residence, require a cooling-off period and typically take four to six weeks.
Can I get a bridging loan with bad credit?
Yes, but your options are narrower. MT Finance assesses applications on the asset rather than credit scoring: CCJs, arrears, and adverse credit history are accepted. Octopus Real Estate, United Trust Bank, and LendInvest will assess adverse credit cases individually but generally prefer cleaner profiles.
What are the main risks of a bridging loan?
The three main risks are: your exit strategy fails (sale falls through, mortgage offer withdrawn) leaving you unable to repay on time; costs escalate if the bridging period extends beyond the initial term; and property values fall, reducing your LTV and making refinancing harder. Always have a primary and backup exit strategy before drawing the loan.
How We Reviewed Bridging Loan Lenders
Ranking criteria. We ranked providers on cost, eligibility, features, and ease of access. Cost and protection carry the heaviest weight because these matter across every borrower type and rarely change with reader preferences.
Data sources. Every lender’s pricing page, terms, and product documentation were checked directly in April 2026. No comparison sites, no press releases, no affiliate material. FCA register cross-checked for regulatory status.
Update cadence. We re-verify every provider on this page at least monthly, and whenever a lender changes pricing, eligibility, or terms. The verification date on the page reflects the most recent full review. Some links on this page are affiliate links; see our editorial policy.
Regulatory note. This page is editorial content, not regulated financial advice. Credit products are subject to status and approval. Compare offers directly with lenders before you apply.