Summary: Bridging loan interest is typically quoted as a monthly rate (e.g., 0.65% per month) rather than an Annual Percentage Rate (APR). This interest is usually ‘rolled up’ and added to the principal balance monthly, meaning you typically repay the lump sum interest and the original loan amount simultaneously when the loan term ends. Because bridging finance is secured against property, your property may be at risk if repayments are not made.

Summary: The best bridging loan rates are found by utilizing specialist brokers, ensuring a robust exit strategy, maximizing your Loan-to-Value (LTV), and preparing a comprehensive application package demonstrating low risk. Remember, bridging loans are secured against property, and failure to repay can lead to serious financial consequences, including repossession.

Summary: Interest on a UK bridging loan is generally calculated as a monthly rate, but it is almost always “rolled up” and added to the principal balance, meaning the borrower pays the entire accumulated sum (principal plus interest and fees) when the loan is repaid at the end of the term. Because interest often accrues on previous interest (compounding), the total cost can increase quickly, and borrowers must ensure they have a clear, viable exit strategy to repay the substantial final balance, otherwise their property may be at risk.

Summary: Bridging loan interest is typically quoted as a monthly rate (e.g., 0.65% per month) rather than an Annual Percentage Rate (APR). This interest is usually ‘rolled up’ and added to the principal balance monthly, meaning you typically repay the lump sum interest and the original loan amount simultaneously when the loan term ends. Because bridging finance is secured against property, your property may be at risk if repayments are not made.