Cost guide
How much does a Bridging finance cost?
Thinking about bridging finance? It's a fantastic solution for buying property quickly, whether you're breaking a chain or securing an auction purchase. We understand you want to know what it might cost. At CertifySpace, we connect you with verified UK firms offering transparent quotes. This guide will help you understand the likely costs involved, so you can plan with confidence.
Typical price
£1,000 to £5,000
What changes the price
Loan size
Larger loans usually mean slightly higher overall fees, but percentages might be lower.
Loan term
The longer you need the finance, the more interest you will accrue over time.
Property value
The value of the property you are buying can influence the fees charged by lenders.
Lender fees
Different lenders have various arrangement fees, often a percentage of the loan.
Broker fees
Your specialist broker will charge a fee for finding and arranging the best deal for you.
Legal fees
You will need a solicitor to handle the legal aspects of your bridging loan.
Prices by region
| Region | Low | Typical | High |
|---|---|---|---|
| London | £2,500 | £4,000 | £6,000 |
| South East | £2,000 | £3,500 | £5,500 |
| South West | £1,800 | £3,000 | £5,000 |
| East of England | £1,800 | £3,000 | £5,000 |
| Midlands | £1,500 | £2,800 | £4,800 |
| North West | £1,500 | £2,700 | £4,700 |
| North East and Yorkshire | £1,400 | £2,600 | £4,600 |
| Scotland and Wales | £1,400 | £2,600 | £4,600 |
Questions people ask
What is bridging finance for?
It is a short term loan to help you buy a property quickly. This might be to complete an auction purchase or to avoid a property chain breaking.
How long can I have bridging finance for?
Bridging loans are typically for a short period, usually from 1 to 24 months. The aim is to repay it once your long term finance is in place.
What fees are involved with bridging finance?
You can expect to pay arrangement fees, interest on the loan, valuation fees, and legal fees. There may also be a broker fee for specialist advice.
Can I get bridging finance without a broker?
While possible, a specialist broker is highly recommended to navigate the market. They help find the best rates and terms for your unique situation.
Is bridging finance expensive?
It can be more expensive than traditional mortgages due to its short term and specialist nature. However, it offers speed and flexibility that other options do not.
How do I compare bridging finance costs?
CertifySpace allows you to compare free quotes from verified UK firms. This helps you see different options side by side and choose what suits you best.