Four costs matter on almost every bridge: the monthly interest rate, the arrangement fee, the valuation and the legals. As of July 2026, unregulated bridging under 75% loan-to-value prices at roughly 0.79%–1.20% per month across our panel. The arrangement fee is typically 2% of the gross loan. Valuations run from a few hundred pounds on a straightforward house to several thousand on commercial. And in bridging, unusually, the borrower normally pays the lender's legal costs as well as their own.
A worked example
Borrow £400,000 for twelve months at 0.9% a month, interest rolled up.
| Item | Cost |
|---|---|
| Interest (12 months, rolled) | £43,200 |
| Arrangement fee (2%) | £8,000 |
| Valuation | £600 |
| Legals (both sides) | £2,500 |
| Total cost of funds | ~£54,300 |
Call it 13–14% for the year, all in. Nobody should pretend that's cheap, and we won't. You pay it for one of two reasons: the deal itself makes far more than the money costs, or the clock is real and missing it costs you the deal entirely. If neither applies, a bridge is the wrong product and a decent broker will tell you so before you spend a pound.
The costs people miss
Exit fees have largely died out on mainstream bridges — most of our panel charge none — but a minority still take 1% or a month's interest on the way out, so check the redemption terms, not just the headline rate. Watch minimum terms too: some lenders charge at least three months' interest even if you repay in six weeks. And if your loan is rolled-up, remember the interest compounds: month nine's interest is charged on a bigger balance than month one's.
What a broker costs on top
Here, nothing. bridgingradar is paid a procuration fee by the lender on completion, the same way the wider market works — the difference is that we show you the exact figure on every deal, disclosed in the paperwork. Nothing is added to your rate to fund it.
Cost the delay, not just the loan. The expensive bridge is rarely the one with the higher rate — it's the one with the optimistic term. Set the term to the plan going wrong by two months, not to the plan going right.