# Are Bridging Loans Fixed? What Locks on a Prime London Facility

Insights article · United Kingdom · Published 2026-11-04

> You need to know whether a prime London bridging rate is locked for the term or tracks Bank Rate. Here is what is genuinely fixed on the offer, and what is re-priced if the exit slips.

You have an offer on a house in prime central London. The term sheet shows a monthly rate. The live question is simple: are bridging loans fixed, or does the rate move if Bank Rate does?

On a high-street tracker, the cost can shift with [the Bank of England's Bank Rate](https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate). At Rikvin, a fixed rate for the original tenor is considered case by case, subject to terms; where one is agreed, it does not follow Bank Rate.

Three things still are not locked: the drawdown date, the cash you actually receive after valuation and retained interest, and the price of any extension if the exit overruns.

> **Why this matters:** On a large prime London facility, interest is usually retained at drawdown, so a slipped sale is often a fresh price for the extension, not a few extra months at the same rate.

## Highlights

- A private bridging loan is quoted as a monthly rate; at Rikvin, fixing it for the original tenor is considered case by case, subject to terms.
- The offer letter sets the term and the arrangement fee, and the rate where a fixed rate is agreed, all indicative and subject to valuation and due diligence.
- Drawdown timing, the net advance after valuation, and any extension if the exit slips are not locked.
- Interest on prime central London facilities is often retained up front, which reduces cash at completion.
- Facilities of £1M – £100M, up to 75% LTV, terms of 3–24 months, term sheet in 24 hours.
- [Talk to a specialist](https://www.rikvincapital.com/uk/contact-us)

## Are bridging loans fixed for the original tenor?

It depends on the offer letter. At Rikvin, a fixed rate for the original tenor is considered case by case, subject to terms. Where one is agreed, the monthly rate on the accepted offer is the rate for that tenor.

The tenor is set, commonly inside a 3–24 month window, and so is the arrangement fee. That is what fixed means on a [prime London bridging loan](https://www.rikvincapital.com/uk/bridging-loans/prime-london-bridging-loans): term and fee, plus the rate where a fixed rate has been agreed.

Every figure stays indicative until valuation and due diligence are done. Our borrowers are typically corporates and property investors, and we lend against the asset and the exit. We are not a bank.

| What locks | What does not |
| --- | --- |
| Monthly rate for the original tenor, where a fixed rate is agreed | Drawdown date |
| Tenor, typically 3–24 months | Net advance after valuation |
| Arrangement fee | Extension rate if the exit slips |

## What still moves after you accept

Drawdown is not a locked calendar day. The Report on Title, KYC and source-of-funds checks set the timetable. Once the file is complete, drawdown is typically about two weeks; urgent cases can complete inside seven days, but that is not guaranteed.

The net advance can still fall. On any [UK bridging loan](https://www.rikvincapital.com/uk/bridging-loans) we size to LTV, up to 75%, on the lower of the valuer's figure and the price in your contract. A light valuation shrinks the facility even if the monthly rate stays put.

If the exit misses the tenor, the original quote does not have to roll. An extension is a new conversation: pricing, fees and conditions can all change. That is the gap between fixed for the term and fixed for as long as you need.

If the vendor's timetable is tight, [map the lending process](https://www.rikvincapital.com/uk/process) before you treat the rate as the only number that matters.

## How retained interest works on a prime London facility

On many prime central London files, interest is retained at drawdown rather than serviced monthly. You do not send a monthly cheque. The cost comes off the facility on day one, so cash at completion is the headline loan minus retained interest and fees.

Take an indicative £8 million first-charge facility and a 12-month tenor. A full year of interest is held back, plus the arrangement fee. Redeem in month eight and unused retained months are commonly credited, subject to the facility letter.

Stay past month twelve and you are not still on the original quote as of right. The exit has to be dated and evidenced. Related: [bridge funding for a prime Hampstead property](https://www.rikvincapital.com/uk/case-study/strategic-bridge-funding-prime-hampstead-property) only works when repayment is a plan, not a hope.

If the completion date is tight, [speak to a specialist](https://www.rikvincapital.com/uk/contact-us) before you exchange.

![Bank of England exterior on Threadneedle Street in the City of London](https://media.rikvincapital.com/rikvin-media/unsplash-1790647601843-8341.jpg)
*Bank Rate can move during your term; a fixed bridging rate, where agreed, does not, unless you extend.*

## When a fixed-rate bridge is the wrong tool

A short, fixed-rate bridge is the right tool when the exit is dated: an exchanged sale, a refinance already in credit process, or a chain break with a known buyer. It is the wrong tool if you need years of rate certainty, or if the exit is still a hope.

The main risk is not a Bank Rate rise during the original term. It is overrunning that term and paying a new price to stay in, or having no exit at all. If you want the cost to fall when Bank Rate is cut, a fixed monthly bridging rate will not do that.

Where the vendor will not wait, [matching cash-buyer speed in prime central London](https://www.rikvincapital.com/uk/insights/fast-bridging-loans-prime-central-london) is the point of the product. Where you have time and income a high-street lender will underwrite, a mortgage is usually cheaper.

## Frequently asked questions

### Are bridging loans fixed or variable?

Most private bridging loans are quoted as a fixed monthly rate for the agreed tenor. They do not track Bank Rate unless the offer says so. At Rikvin, a fixed rate is considered case by case, subject to terms. If you extend past the original term, that rate is not automatically honoured. Terms are indicative and subject to valuation and due diligence.

### Does retained interest stay fixed if I redeem early?

Unused retained interest is commonly credited if you redeem early, subject to the facility letter. You pay the quoted monthly rate for the months the loan is outstanding, though a minimum interest period can apply. Arrangement fees are usually taken at drawdown and are not refunded. This is not tax or legal advice.

### What happens to the rate if my sale overruns the term?

The original offer does not have to continue. An extension is a new pricing event and may carry a different rate, a further fee, or tighter conditions. Plan the exit with margin rather than assuming a cheap rollover. Raise it with the lender before the tenor expires if the sale is slipping.

### Can the net advance change after I accept the offer?

Yes. We lend on the lower of the valuer's figure and the contract price, at up to 75% LTV. A light valuation cuts the facility even if the monthly rate stays the same. Title, KYC or source-of-funds issues can also delay drawdown. All figures remain indicative until due diligence is complete.

### Will my bridging rate fall if Bank Rate is cut?

No. A fixed monthly bridging rate will not fall when Bank Rate is cut. You are paying for certainty over a short tenor, not a tracker. If you have a fixed rate and Bank Rate rises, you are also not re-priced during the original term. Any extension is a separate pricing event.

A fixed bridging rate holds for the term you signed. The moment that term is behind you, you are negotiating again.

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