How to Compare Bridging Lenders: Complete Guide 2025

Expert guide to comparing bridging lenders: what to look for, red flags to avoid, and how to choose the right lender for your specific needs. From FastBridge Funding, the UK's leading bridging finance broker.

Choosing the right bridging lender can significantly impact your loan's cost, approval speed, and flexibility to handle unexpected circumstances. However, comparing lenders goes far beyond just looking at interest rates. Each lender has different strengths, varying loan-to-value ratios, distinct fee structures, and different expertise in handling specific property types or borrower situations. This guide walks you through the key criteria to evaluate when comparing bridging lenders, helping you identify which option truly offers the best value for your unique situation.

Whether you're comparing specialist lenders directly, considering a broker like FastBridge Funding who has access to 100+ lenders, or wondering if working with your bank is an option, understanding what matters most—and what to watch out for—ensures you make the right choice. Learn how to evaluate the total cost, assess speed and flexibility, identify red flags, and find the lender that best matches your needs.

Key Comparison Criteria

What to evaluate when comparing bridging lenders

Interest Rates

High

What to Look For:

  • Monthly rate (0.45-0.80% typical)
  • Rolled-up vs monthly interest
  • Rate structure (fixed vs variable)
  • Early repayment charges

Red Flags:

  • Rates significantly below market (likely hidden fees)
  • Unclear rate structure
  • High early repayment penalties

Compare total cost, not just headline rate. 0.50% with no fees may be cheaper than 0.45% with high fees.

Loan-to-Value (LTV) Ratios

High

What to Look For:

  • Maximum LTV available (typically 60-75%)
  • LTV by property type
  • LTV for different borrower profiles
  • Cross-collateralization options

Red Flags:

  • Unrealistic LTV promises (over 80% is rare)
  • Hidden LTV restrictions
  • LTV varies significantly from quoted

Higher LTV usually means higher rates. Consider if you can reduce LTV to get better terms.

Speed of Completion

Critical for urgent deals

What to Look For:

  • Typical completion timeframes
  • Fastest possible completion
  • Pre-approval availability
  • Streamlined processes

Red Flags:

  • Vague completion promises
  • No pre-approval system
  • Slow response times

For urgent deals (auctions, chain breaks), speed is often more valuable than lowest rates.

Fees Structure

High

What to Look For:

  • Arrangement fees (1-2% typical)
  • Exit fees (0-2%, many offer none)
  • Valuation fees
  • Broker fees (if applicable)
  • Early repayment charges

Red Flags:

  • Hidden fees not disclosed upfront
  • High exit fees (2%+)
  • Multiple small fees that add up
  • Unclear fee structure

Request full fee breakdown in writing. Total fees often matter more than individual fees.

Property Type Eligibility

High

What to Look For:

  • Residential property acceptance
  • Commercial property options
  • Mixed-use property handling
  • Unusual property types (listed, HMO, etc.)

Red Flags:

  • Limited property type acceptance
  • Unclear eligibility criteria
  • Last-minute property type rejections

Confirm property type eligibility early. Some lenders specialize in specific property types.

Complex Case Handling

Medium-High

What to Look For:

  • Overseas investor experience
  • Development exit capability
  • Complex ownership structures
  • Multiple security options

Red Flags:

  • Limited complex case experience
  • Rigid underwriting criteria
  • No specialist expertise

For complex cases, brokers like FastBridge Funding provide access to specialist lenders.

Exit Strategy Flexibility

High

What to Look For:

  • Accepted exit strategies
  • Flexibility if exit changes
  • Refinancing options
  • Extension policies

Red Flags:

  • Rigid exit requirements
  • No extension options
  • Penalties for exit changes

Ensure your exit strategy is realistic and lender accepts it. Have backup plans.

Regulatory Status

High

What to Look For:

  • FCA-regulated lenders (for regulated loans)
  • Regulatory compliance
  • Consumer protection
  • Professional standards

Red Flags:

  • Unregulated for regulated scenarios
  • Regulatory issues or warnings
  • Poor regulatory standing

For owner-occupier purchases, ensure you work with FCA-regulated lenders. For investment properties, unregulated is normal.

Quick Comparison: Broker vs Direct Lender vs Bank

Lender TypeRatesMax LTVSpeedFeesBest For
FastBridge Funding (Broker)0.45-0.80% monthlyUp to 75%5-7 days1-2% broker + lender feesUrgent deals, complex cases, choice of lenders
Direct Specialist Lender0.50-0.85% monthlyUp to 70%7-14 days1-2% lender fees onlySimple cases, when you know the lender, avoiding broker fees
High Street BankN/A (no bridging)N/AN/AN/ALong-term mortgages only, not bridging finance

Step-by-Step Comparison Process

1

Define Your Requirements

Clarify: loan amount, property type, timeline urgency, exit strategy, and any special requirements (overseas investor, complex structure, etc.).

2

Get Multiple Quotes

Request quotes from 3-5 lenders or use a broker like FastBridge Funding to compare 100+ lenders instantly. Ensure all quotes include full fee breakdowns.

3

Calculate Total Cost

For each lender, calculate: (interest × months) + arrangement fee + exit fee + broker fee + valuation + legal. Compare total costs, not just rates.

4

Evaluate Speed & Flexibility

For urgent deals, speed may be more valuable than lowest rates. Check completion timeframes, pre-approval availability, and flexibility if circumstances change.

5

Check Eligibility & Experience

Confirm lender accepts your property type, has experience with your scenario (auction, chain break, etc.), and can handle any complexities (overseas, development exit, etc.).

6

Verify Reputation & Terms

Check lender reputation, regulatory status, read reviews, and ensure all terms are in writing. Avoid lenders with red flags or unclear terms.

Why Use FastBridge Funding to Compare Lenders?

100+ Lenders Compared

We compare 100+ specialist lenders instantly, saving you hours of research and ensuring you see all options.

Better Rates

Our volume discounts and lender relationships often secure better rates than going direct, offsetting broker fees.

Expert Guidance

We help you understand total costs, identify the best lender for your scenario, and avoid costly mistakes.

Frequently Asked Questions

Get answers to the most common questions about bridging loans

Compare lenders across: interest rates (monthly %), LTV ratios, completion speed, fee structure (arrangement, exit, broker), property type eligibility, complex case handling, exit strategy flexibility, and regulatory status. Get quotes from multiple lenders or use a broker like FastBridge Funding to compare 100+ lenders at once.
Total cost matters most. A lender with 0.50% monthly and 1% fees may be cheaper than 0.45% monthly with 2% fees plus exit fees. Calculate total cost over your loan term: (interest × months) + arrangement fee + exit fee + broker fee. Compare the total, not individual components.
Using a broker like FastBridge Funding saves time and often money. We compare 100+ lenders instantly, access better rates through volume discounts, provide expert guidance, and handle the application process. For urgent or complex cases, brokers are usually the better choice.
Red flags include: rates significantly below market (likely hidden fees), vague completion promises, hidden fees not disclosed upfront, rigid exit requirements, limited property type acceptance, poor regulatory standing, and slow response times. Always get everything in writing.
Check: FCA registration (for regulated loans), company history and track record, client reviews and testimonials, professional memberships, regulatory warnings or issues, and transparency in communication. Reputable lenders are transparent about all costs and terms.
Yes, terms are often negotiable, especially for larger loans (£1M+), experienced borrowers, or strong security. Working with a broker like FastBridge Funding can help negotiate better terms through our lender relationships and volume discounts.

Still have questions?

Our expert team is here to help you with your bridging loan needs

Ready to Move Forward?

Ready to secure your bridging loan? Get your personalized quote in minutes with our expert team.

Same Day Quotes
7 Day Completion
Competitive Rates