Bridging loan calculator
Enter what you need in hand and see the gross facility, the interest, and what actually reaches your account.
Open market value of the security.
The money you want in hand.
Bridging is priced monthly — this is about 10.2% a year.
Most bridges run 3 to 18 months.
Typically 1–2% of the gross loan, added to the facility.
Indicative cost
Gross loan
The facility, including fees
£284,738
Loan to value
56.9%
Arrangement fee
£5,695
Interest per month
Not payable monthly
£2,420.27
Total interest
£29,043
Net advance to you
£250,000
Repayable at the end
£284,738
Showing the workings
Bridging quotes are hard to compare because lenders present them differently. Here is exactly what this calculator does.
Gross versus net
You tell the calculator what you want in hand — the net loan. Fees, and on a retained deal the whole term's interest, come out of the advance, so the gross loan has to be larger to leave you with that amount. Quotes that only show one of the two figures are easy to misread.
Monthly, not annual
Bridging rates are quoted per month. A 0.85% bridge costs 0.85% of the balance every month, which is a little over 10% a year. Treating that as an annual figure understates the cost twelvefold, and it is the most common mistake people make reading a bridging quote.
Why rolled-up costs more
With rolled-up interest the unpaid interest joins the balance each month and then itself earns interest. Over twelve months that compounding adds a little over serviced interest at the same rate. The calculator compounds properly rather than multiplying.
What is not included
Valuation fees, your solicitor's costs, the lender's legal costs and any exit fee. They vary by lender and property and can add several thousand pounds, so treat the total here as the finance cost rather than the whole cost.
The three ways interest is charged
- Retained interest
- The lender holds back the full term's interest from the advance at the outset. You pay nothing monthly, but you receive less on day one and the loan has to be grossed up to compensate.
- Rolled-up interest
- Interest is added to the balance each month and settled in one payment at the end. Nothing to pay monthly, and because it compounds it costs slightly more than serviced interest over the same term.
- Serviced interest
- You pay the interest monthly, like a standard interest-only mortgage, so the balance never grows. Lenders will want evidence of income to cover the payments.
Risk warnings
- A bridging loan is secured against property. Your property may be repossessed if you do not keep up repayments or repay the loan at the end of its term.
- Bridging finance is short-term borrowing and is usually more expensive than a term mortgage. It should not be used as a long-term funding solution.
- Some forms of bridging finance are not regulated by the Financial Conduct Authority. We will confirm in writing whether your case is regulated before you proceed.
Turn an estimate into a quote
Send us the case and an adviser will come back with terms from lenders who actually fit it.
