Bridging loan brokers normally charge between 1% and 2% of the loan amount, although fees can vary depending on the broker, loan size, and complexity of the deal.
Bridging loans are a powerful tool for quickly securing short-term finance – but navigating the market can be overwhelming without expert help.
That’s where bridging loan brokers come in. These experts match borrowers with lenders, negotiate competitive terms, and streamline the process. However, their services come at a cost. In this guide, we’ll break down how much bridging loan brokers charge, what fee structures exist, and how to decide whether their services are right for you.
If you’re considering a bridging loan and want clear, expert guidance, contact Blue Square Capital today for a personalised quote and expert advice.
What Is A Bridging Loan Broker?
A bridging broker is a financial intermediary that connects borrowers with lenders that offer short-term bridging loans. These loans are typically used to “bridge” gaps in financing, like buying a property before a sale completes or funding renovations before refinancing.
Brokers work with a range of lenders, including high street banks, private investors, and specialist lenders. Their role includes finding the best loan, negotiating rates and terms, helping with the application process, and guiding clients through to completion.
How Much Do Bridging Loan Brokers Charge?
Most bridging loan brokers in the UK charge a fee of between 1% and 2% of the loan amount. That said, there is no industry standard, and the actual cost can depend on the loan size, property type, and the complexity of the deal.
In some cases, the broker may charge:
- A percentage fee (typically 0.5%–2%, sometimes higher for complex cases)
- A flat fee, especially for smaller loans
- A success-only fee, where you only pay if the loan completes
- An application or processing fee, sometimes refundable on completion
Some brokers also earn a procuration fee – a commission paid by the lender when a loan completes. If a broker advertises “0% broker fee”, it usually means they’re being paid by the lender instead.
At Blue Square Capital, we’re transparent about all our fees. Our clients receive a full proposal upfront with all costs clearly explained. Contact Blue Square Capital today for a personalised quote and expert advice.
Which Type of Broker Fee Is the Best?
There’s no one-size-fits-all answer, but here’s a quick comparison of common broker fee structures:
| Fee Type | Pros | Cons |
|---|---|---|
| Percentage-based | Aligns with loan size and complexity | Can be expensive for large loans |
| Flat fee | Predictable and often lower for small loans | Less flexible for complex arrangements |
| Success-only | No risk if the loan doesn’t go ahead | May be higher to compensate for risk |
The best fee structure depends on your deal. For example, high-value borrowers might prefer a flat fee, while first-time borrowers may benefit from a success-only agreement that lowers risk.
Do You Have To Work With A Bridging Loan Broker To Secure A Bridging Loan?
No you don’t.
You can go directly to a lender, and this may even cut down the need to pay out broker fees. Just be sure that you know what you’re getting yourself into and be sure that the terms are clearly laid out by the bridging company.
Working directly with Blue Square Capital gives you better rates, faster processing, and expert support from start to finish.
What Other Costs Are There to Consider with a Bridging Loan?
Broker fees are just one part of the total cost of a bridging loan. Here’s what else you should factor in:
- Lender arrangement fees: Typically 1%–2% of the loan amount. Often added to the loan.
- Valuation fees: To assess the property’s market value. Usually between £200 and £800.
- Legal fees: Separate representation is often required. Expect £800–£1,200.
- Exit fees: Some lenders charge 1%–2% when you repay the loan.
- Early repayment charges: If you repay the loan before the agreed term, some lenders impose a fee.
Want a complete breakdown of potential costs? Request a full quote from Blue Square Capital and we’ll walk you through every detail.
How Do You Know if a Broker’s Fee Is Fair?
A broker’s fee is fair if:
- It aligns with industry norms (1%–2%)
- It reflects the complexity and value of the deal
- It’s fully disclosed upfront
- The broker offers added value (like negotiation, support, and lender access)
A good rule of thumb is: if the broker’s service saves you time, stress, or money – the fee is worth it.
What Should You Expect from a Bridging Loan Broker?
A good bridging broker should offer:
- Expert advice tailored to your financial situation
- Access to a wide lender network
- Support throughout the application process
- Clear communication and transparency on fees
- Negotiation skills to get the best terms
- Speedy completion – bridging loans often need to move fast
Bridging Loan Brokers – Everything You Need To Know
Bridging loan brokers typically charge between 1% and 2% of the loan amount – but the right broker can help you save significantly more through better rates, faster completions, and expert guidance.
If you’re exploring bridging finance and want to ensure you’re getting the best possible deal, contact Blue Square Capital today. Our experienced team is ready to help you secure the right bridging loan for your needs – quickly, professionally, and transparently.
