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Michelle Monck

Consumer Finance Expert
Published: 06/11/2019
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According to the latest data from, the average monthly interest rates for bridging loans have reduced from just under 8% since the start of the year and now. Rates have dropped from 0.798% per month to 0.736%. During the past 11 months, only one bridging lender has increased its rates, while there have been eight rate reductions. The analysis included between 40 and 46 providers during the year.

Bridging finance average rates













Average Monthly rate (%)












Rates shown are lenders' minimum monthly rates. These can vary depending on your term, borrowing amount and personal circumstances.

UTB recently unveiled research, along with The Association of Short Term Lenders, showing both brokers and bridging lenders were confident of growth in the sector over 2019.

In the research from UTB, brokers stated growth in the sector was due to the increasing flexibility of bridging loans to meet the needs of different types of borrowers and a growing awareness from property developers. It seems lenders have responded to this with a steady reduction in their rates.

Brokers also thought that reduced costs by using automated valuation models and dual legal representation have also led to further growth in the bridging sector.

What is an automated valuation model or AVM?

This is a database that uses mathematical modelling to provide property valuations. They do this by finding properties similar and nearby to the one requiring a bridging loan. The database uses an algorithm based on local market data to estimate the current value of the property. Finally, a level of confidence is applied to the valuation.

What are the benefits of the dual legal model?

When the borrower and seller both use the same solicitor for their mortgage or bridging loan, this makes the process faster and cheaper. This is because the firm only needs to communicate internally, rather than going out to another company, and the paperwork generally remains in one place and within one end-to-end process. However, there are some concerns that while this model is efficient, it may lack the impartiality to properly represent both parties. 

You can find out more about bridging in our guide Five different ways to use a bridging loan.


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