Bridging loan calculator
The true cost of a bridge, not just the headline rate: interest to the month you exit, every fee, and the real monthly rate on the cash you receive.
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Need a bridge in days, not months?
We arrange bridging for auction purchases, chain breaks, refurbishments and short-term business needs with specialist lenders, regulated and unregulated.
Start a bridging enquiryWhat a bridging loan really costs
A bridging loan is short-term finance secured on property, usually for 1–24 months, and repaid by a sale or a refinance (the exit). The headline rate is monthly, so 0.85% a month is about 10.2% a year. It isn't the whole cost, though. This calculator works out the true cost of funds: interest plus the lender's arrangement and exit fees, measured against the cash you actually receive.
Retained, rolled up or serviced interest
- Retained: the lender deducts the interest for the full facility term from the loan on day one, so the gross loan is bigger than the cash you receive. Exit early and many lenders refund the unused months, but some don't, so check.
- Rolled up: interest is added to the balance each month and compounds. You only pay interest up to the month you actually exit.
- Serviced: you pay the interest monthly, like an interest-only mortgage. The loan is smallest and the cost usually lowest, but you need the monthly cashflow.
Fees to budget for
Arrangement fees are typically 1–2% of the gross loan and exit fees 0–1%. Both count towards the true cost. Valuation, legal and admin fees go to third parties and are shown separately. The stamp duty calculator covers the tax side of a purchase.
How much can you borrow?
Most bridging lenders go to 70–75% gross LTV on a single property, and higher when extra property is offered as additional security. With retained interest the LTV cap applies to the gross loan, so the cash you can take is lower. The "max net" figure shows it. Once the work is done, a buy-to-let mortgage is often the exit.
Frequently asked questions
What is the true cost of a bridging loan?
The interest you pay up to the month you exit, plus the arrangement and exit fees. Dividing that by the cash you actually receive gives the true monthly rate, which is often 0.2%–0.4% a month higher than the headline rate.
How is bridging loan interest calculated?
Monthly, on the gross loan. With retained interest the full term's interest is deducted up front; with rolled-up interest it compounds monthly and is paid at the end; with serviced interest you pay it each month.
What is a typical bridging loan rate in the UK?
Most bridging rates sit between about 0.6% and 1.2% a month, depending on LTV, the property, the exit and whether the loan is regulated (secured on a home you or family live in).
How quickly can a bridging loan complete?
Straightforward cases often complete in two to four weeks. Auction purchases with a 28-day deadline are routine. The valuation and legal work usually set the pace.
What is a bridging loan exit?
How the loan is repaid: normally a property sale or a refinance onto a longer-term mortgage. Lenders assess the exit carefully, so a credible exit is as important as the property.
Can I get a bridging loan for a property that isn't mortgageable?
Yes. That's one of the main uses: buying a property with no kitchen, a short lease or structural issues, putting it right, then refinancing onto a mortgage.