---
title: "What does a bridging loan cost?"
description: "The fees and other costs to consider alongside bridging loan interest."
url: "https://mortgagelane.com/guides/bridging-loan-guide/what-does-a-bridging-loan-cost"
site: "Mortgage Lane"
collection: "guides"
date: "2026-04-13"
author: "Joseph Lane"
category: "Mortgage guide"
reviewed: "2026-10-08"
reading_time: "2 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# What does a bridging loan cost?

The fees and other costs to consider alongside bridging loan interest.

The fees and other costs to consider alongside bridging loan interest.

[Bridging loan](https://mortgagelane.com/definitions?term=bridging-loan)

Bridging finance

A short-term loan secured against property or land to cover a funding gap until an agreed repayment event, such as a sale or refinance.

[Read the full definition of Bridging loan](https://mortgagelane.com/definitions?term=bridging-loan)

Back to overview

[Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide)

Related definitions

[Bridging loan](https://mortgagelane.com/definitions#def-bridging-loan)

## What does a bridging loan cost?

### What does a bridging loan cost?

**The total cost of a bridging loan is made up of interest, an arrangement fee, valuation fees, legal fees, and in some cases exit or administration fees, and the total depends more on how long the loan runs than on the headline rate.**

**Arrangement fee.** Most lenders charge a percentage of the loan, often added to the loan rather than paid upfront. [Revolving or repeat-use facilities](https://mortgagelane.com/mortgages/revolving-credit-mortgages) may carry commitment or non-utilisation fees instead.

**Valuation fees.** An Automated Valuation Model (AVM) is often free or very low cost. A desktop valuation typically costs £300 to £750. A full physical valuation commonly costs £700 to £2,000 or more for complex or high-value assets. Valuation fees are usually paid upfront and are non-refundable even if the loan does not complete.

**Legal fees.** The borrower usually pays both their own solicitor and the lender's. Typical ranges: £800 to £1,500 for standard residential bridging, £1,200 to £2,500+ for commercial or semi-commercial, and £2,000+ for land or complex title cases. Some lenders allow their legal fees to be added to the loan.

**Minimum loan size.** Most bridging lenders set a minimum loan of £50,000. Lower loans are possible in some instances, but the fixed setup costs weigh more heavily on a small loan. The minimum property value follows from the loan-to-value: at 75% LTV, a purchase of around £70,000 is needed to reach a £50,000 minimum loan.

Before taking a bridging loan, a borrower should be clear on the total cost over the term, the realism and timing of the exit, [the risk of delays or a failed exit](https://mortgagelane.com/short-term-finance/re-bridging-loans), and the effect of rolling interest if the loan extends. When used correctly, the cost is outweighed by the opportunity secured or the value created during the bridging period.

### Bridging loan costs

*Valuation and legal costs*

| Cost | Amount |
| --- | --- |
| Interest | approx. 4-7% of the loan amount |
| Arrangement fee | 1-2% |
| Valuation and legal fees | variable, often £1,500-£3,000 combined |

## Talk it through with an adviser

Speak to a Mortgage Lane adviser about your circumstances and the next steps.

Published: 2026-04-13

Last reviewed: 2026-10-08

Source: https://mortgagelane.com/guides/bridging-loan-guide/what-does-a-bridging-loan-cost