High-Value Bridging Loan Costs Explained
Bridging loans are a powerful tool for unlocking large sums of capital at speed, sometimes within days depending on the situation.
When dealing with multi-million-pound property transactions, time-sensitive investments, or complex acquisitions, high-value bridging loans (for example, from £10 million and beyond) can be the short-term funding solution for some investors.
But what does a bridging loan actually cost when you’re borrowing £15 million or even £20 million?
At Kerr & Watson, we arrange bespoke bridging finance and guide you through the process.
Below, we’ve combined two examples, £15 million and £20 million bridging loans to illustrate the typical costs and what factors drive those figures. To find out the costs that are applicable to your situation and the amount that you need to borrow, get in touch to speak with a broker.
Understanding Bridging Loan Costs
Bridging finance is designed for short-term use, typically 3 to 12 months. Because of its temporary nature, costs are structured differently from traditional mortgages. You’ll primarily face two categories of cost:
- Monthly Interest
- Upfront and Exit Fees
Bridging loan rates are generally quoted per month, not annually, reflecting the short-term nature of the borrowing.
Monthly Interest: What to Expect
The interest rate on a bridging loan will depend on several variables, including loan-to-value (LTV), property type, location, the borrower’s experience, and whether the loan is regulated or unregulated.
As of 2025, typical monthly rates for high-value residential bridging loans are below, although you should always consult an adviser to find out what they would be based on your own situation:
- 0.55% – 0.95% per month
Here’s how that translates in practice:
| Loan Amount | Monthly Rate | Monthly Interest | 12-Month Interest Total |
| £15,000,000 | 0.55% | £82,500 | £990,000 |
| £15,000,000 | 0.75% | £112,500 | £1,350,000 |
| £15,000,000 | 0.95% | £142,500 | £1,710,000 |
| £20,000,000 | 0.55% | £110,000 | £1,320,000 |
| £20,000,000 | 0.75% | £150,000 | £1,800,000 |
| £20,000,000 | 0.95% | £190,000 | £2,280,000 |
Rolled vs Serviced Interest
Many lenders allow interest to be rolled, meaning it’s added to the loan and repaid at the end. Others may require serviced interest, paid monthly during the loan term, which is based on your affordability, like a standard interest only mortgage (a much shorter version). The structure will impact both your cash flow and the gross loan amount.
Standard Fees on High-Value Bridging Loans
Beyond interest, borrowers must budget for several upfront and potential exit fees:
Arrangement Fee
Charged for setting up the loan, typically added to the gross loan.
- Range: 1%–2%
- £15M loan: £150,000–£300,000
- £20M loan: £200,000–£400,000
Valuation Fee
Lenders require a formal valuation of the security property.
- Typical Range: £2,000–£6,000
May increase with unusual or high-value assets so your adviser can explain when they explore this with lenders (who would usually obtain quotes for you from their chosen surveyors).
Legal Fees
Both the lender and borrower need legal representation.
- Typical Range: £3,000–£10,000
More complex deals may exceed this so your solicitor / the lender will be able to confirm this
Exit Fee (Sometimes)
Not all lenders charge this, but when applied, it’s usually:
- Around 1% of loan amount
- £150,000 on £15M; £200,000 on £20M
Broker Fee
At Kerr & Watson, our broker fees are always clearly disclosed upfront and the amount will depend upon the nature of the transaction. No chargeable work is carried out before fees are disclosed.
Find out Your Options
Example Cost Scenarios (12-Month Term)
To give you a real-world sense of total costs, here are two illustrative examples using some mid-range example rates and fees.
£15,000,000 Bridging Loan
- Interest (0.75%): £1,350,000
- Arrangement Fee (1.5%): £225,000
- Legal & Valuation: £15,000
- Total Cost: ~£1,590,000–£1,600,000
- Gross Loan: ~£16.6M
- Net Advance: £15M
£20,000,000 Bridging Loan
- Interest (0.75%): £1,800,000
- Arrangement Fee (1.5%): £300,000
- Legal & Valuation: £15,000
- Total Cost: ~£2,110,000–£2,120,000
- Gross Loan: ~£22.1M
- Net Advance: £20M
The gross loan is what’s repaid at the end of the term so you need to make sure that your project makes this viable. The net loan is what’s released to you after deducting any retained interest or fees.
What Influences Bridging Loan Pricing?
High-value bridging finance is highly bespoke. Here are key factors that affect pricing:
- Loan-to-Value (LTV)
Lower LTVs typically mean lower rates. - Property Type & Condition
Residential properties tend to attract lower rates than commercial or land. - Location
Certain regions may incur premiums due to limited lender appetite. - Borrower Profile
For renovations or developments, experienced property developers with strong credit profiles may secure better terms, or experience may be a requirement to get the funding. - Exit Strategy
A clearly defined and realistic plan (e.g., refinance or sale) is essential for lender comfort when underwriting the loan. - Term Length
Loans beyond 12 months may incur higher rates or fees.
Is Bridging Right for Your Situation?
A high-value bridging loan isn’t suitable for everyone. These can be highly flexible but come with risks. You might consider bridging if:
- You need to complete a purchase before selling another asset
- You’re developing or refurbishing for resale
- You need to raise capital quickly for a business opportunity
- You’re restructuring short-term liabilities
However, bridging loans are not suitable for long-term borrowing or for those without a credible exit strategy as this can mean remaining on the bridge for longer than anticipated, costing a significant amount.
At Kerr & Watson, we only recommend bridging when we agree that it’s the most suitable solution, and we’ll tell you if it’s not.
Why Use Kerr & Watson?
At Kerr & Watson, we work with a wide panel of trusted lenders who are experienced in structuring high-value deals. Our service includes:
- Full market sourcing for competitive interest rates
- Direct access to specialist underwriters
- Transparent fee structure from day one
We also help prepare for your application, advise needed docs before you incur valuation or legal costs, to save time and money.
Speak With an Expert
If you’re exploring high value bridging finance, we recommend early-stage advice. The earlier we’re involved, the more we can tailor the loan structure, mitigate costs, and align with your intended exit.
Contact Kerr & Watson today for a confidential consultation based on your specific situation.
