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Best Bridging Loan Companies UK: Speed vs Cost Trade-off
Octopus Real Estate leads on rate (from 0.70%/month) with strong institutional backing. MT Finance is the best option for adverse credit, asset-based, no credit scoring.
Data verified April 2026. Monthly rates are indicative starting rates, your rate depends on LTV, security quality, and credit profile. Always obtain a written quote before committing.
Provider Breakdowns
Octopus Bridging Loans
Octopus Bridging Loans
Octopus Real Estate (part of the Octopus Group) offers residential bridging from 0.
Best for: Larger bridging transactions needing a fully FCA and PRA authorised lender with flexible entity structures
Watch out: 2% arrangement fee plus £195–£495 admin fee; no online rate calculator, broker or direct enquiry required
Not ideal if: Borrowers needing rates at higher LTV bands (0.65%/month at 75% LTV) or same-day completions without broker involvement
Monthly RateFrom 0.57%
Max LTV75%
Eligibility: England, Wales, Scotland; LLPs, SPVs, trusts, SIPPs accepted; minimum property value £150k; first, second, and combination charges
Not ideal if: Borrowers needing rates at higher LTV bands (0.65%/month at 75% LTV) or same-day completions without broker involvement
Watch out: 2% arrangement fee plus £195–£495 admin fee; no online rate calculator, broker or direct enquiry required
Fully FCA and PRA authorised, highly regulated, institutional quality
Accepts LLPs, SPVs, trusts, and SIPPs, flexible entity structures
First, second, and combination charge products up to £15m
2% arrangement fee plus £195–£495 administration fee
No online rate calculator, requires broker or direct enquiry
Rate at 75% LTV rises to 0.65%/month
Tiered rates from 0.57%/month (<50% LTV) to 0.65%/month (<75% LTV)
FCA and PRA authorised; accepts LLPs, SPVs, trusts, SIPPs
First, second and combination charge bridging; no exit fees
Factors to Consider When Choosing a Bridging Loan Company
Bridging loans are short-term and expensive, choosing the wrong lender significantly increases your total cost. We assessed all five providers in this comparison across seven dimensions:
1. Interest rate: Monthly rates range from 0.70% to 1%+ in this comparison. On a £500,000 loan over 12 months, the difference between 0.70% and 0.99% is roughly £17,400. Check whether rates are retained, serviced, or rolled up.
2. Fees: Arrangement fees (typically 1-2%), exit fees, valuation fees, and legal costs all add to the true cost. Funding 365 charges no acceptance or exit fees, most others do.
3. LTV: Standard maximum is 70%, but LendInvest offers 75% for eligible borrowers. The higher the LTV, the more you can borrow relative to the property value, but the higher the rate.
4. Speed: Greenfield Mortgages can complete in as little as one week. Most lenders work within 2-4 weeks. If your transaction is time-critical, ask for their average completion timeline before applying.
5. Entity acceptance: United Trust Bank accepts LLPs, SPVs, trusts, and SIPPs, most lenders only lend to individuals or standard limited companies.
6. Credit history: If you have CCJs, arrears, or adverse credit, MT Finance is asset-based and does not credit-score. Most institutional lenders require a clean profile.
7. Charge type: First charge loans are standard; second charge loans (where another mortgage already exists) are available from several lenders in this comparison including MT Finance and United Trust.
Which Banks Offer Bridging Loans?
Traditional high-street banks have largely withdrawn from bridging since the 2008 financial crisis.
The few that remain have significantly raised their eligibility bar and reduced their flexibility: loan-to-values are lower, criteria are stricter, and processing times are slower than specialist lenders.
This gap has been filled by specialist bridging lenders, the companies in this comparison. We found that if you need bridging finance today, you’re far more likely to be served by a specialist like Octopus, LendInvest, or MT Finance than by a high-street bank.
How Much Does a Bridging Loan Cost?
Bridging loans are among the most expensive short-term finance products. Expect to pay: a monthly interest rate of 0.70-1.0%+ on the loan; an arrangement fee of 1-2%; an exit fee in some cases; and valuation and legal fees on both sides.
We ran the numbers: on a £500,000 loan over 6 months at 0.79%/month with a 1.5% arrangement fee, total financing costs reach roughly £31,000 before valuation and legal. That’s why we recommend comparing the all-in cost, not just the headline rate.
Some lenders (like Funding 365) charge no exit fees, a meaningful saving on shorter loans. Always ask for a full cost illustration before committing.
What are the Alternatives to Bridging Loans?
If you’re considering a bridging loan purely for cost reasons, these alternatives are worth exploring: Personal loans are cheaper but typically capped at £25,000, unsuitable for most property transactions.
Remortgaging can release equity at lower rates, but takes 4-8 weeks and requires your current lender’s agreement, too slow for auction purchases or urgent transactions.
Development finance is the right choice if you’re building or undertaking a major conversion rather than bridging to a long-term mortgage. The cost is similar but the product is designed for longer development timelines.
If none of these alternatives fit your situation, bridging is typically the only option for time-critical property financing. We strongly recommend having a clear, documented exit strategy, confirmed mortgage offer, sale agreed, or refinancing arranged, before you draw the loan.
How do I compare bridging loan providers in the UK?
Compare monthly interest rates, arrangement fees, exit fees, maximum LTV, term length, and whether the lender assesses by credit score or purely on the asset. Always obtain a full cost illustration, the headline monthly rate rarely reflects the true total cost.
What is the typical interest rate for a UK bridging loan?
Monthly rates range from 0.70% (Octopus Real Estate) to 0.99%+ (MT Finance) in this comparison. Lower rates go to borrowers with clean credit, lower LTV, and strong security. Annual equivalent rates typically run from 8.7% to 12%+ when compounded.
How quickly can I get a bridging loan in the UK?
Most specialist lenders can approve within 24-48 hours and fund within 1-2 weeks. Greenfield Mortgages has completed transactions in as little as 7 days for straightforward cases. Regulated bridging loans (on your primary residence) require a cooling-off period and take longer.
Can I get a bridging loan with bad credit?
Yes, but your options are narrower. MT Finance specifically assesses on the asset rather than credit scoring, CCJs, arrears, and adverse credit are considered. Octopus Real Estate and Funding 365 will assess adverse credit cases individually but generally prefer cleaner profiles.
What are the main risks of bridging loans?
The three main risks are: (1) your exit strategy fails, the sale falls through or your mortgage offer is withdrawn, leaving you unable to repay; (2) costs escalate if the bridging period extends beyond your initial term; and (3) property values fall, reducing LTV and making refinancing harder. Always have a primary and backup exit strategy.
How we reviewed Best Bridging Loan Companies UK
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 business type and rarely change with reader preferences.
Data sources. Every provider’s pricing page, terms, and product docs 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 provider 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 providers before you apply.
Octopus Bridging Loans
Funding 365 Bridging Finance
LendInvest Bridging Loans
MT Finance Bridging Loans
United Trust Bridging Loans