Bridging loan calculator
Work out what a bridging loan really costs: monthly interest, fees, and the cash you actually receive on day one when interest is retained. Change any number and it recalculates.
The loan
Typical range 0.55% to 1.1% for residential investment; higher for commercial, land and heavy refurb.
Retained: interest for the whole term is deducted from the loan on day one. Rolled up: added to the balance and paid at the end. Serviced: paid monthly, which lenders only allow if you can show the income.
Valuation fees scale with property value. Lender legal fees are usually paid by you. Your own solicitor is extra.
- Interest per month
- £0
- Interest for the term
- £0
- Arrangement fee
- £0
- Exit fee
- £0
- Other costs
- £0
- Total cost of the loan
- £0
- As a % of the gross loan
- 0%
- Amount to repay at the end
- £0
- Loan-to-value
- –
Simple monthly interest. Some lenders compound rolled-up interest, which adds a little. Illustration only, not an offer.
How much could I borrow?
Most lenders stop at 70 to 75% for residential investment property, 60 to 70% for commercial and land. Additional security can take the effective figure higher.
- Less retained interest and fee
- £0
- Net cash on day one
- £0
The gap between gross and net is why bridging quotes confuse people. Lenders lend the gross figure; you receive the net. Plan the purchase around the net.
Reading the numbers
Gross loan is what the lender lends and what the LTV is measured against. Net loan is what lands in your solicitor's account after retained interest and the arrangement fee are taken off. On a £560,000 gross loan at 0.85% for 12 months with a 2% fee, the net is roughly £492,000. If you needed £560,000 of cash, you needed a bigger loan, or a lower LTV than you thought.
Retained interest is the norm for bridging. It means no monthly payments, which suits a project with no income. If you redeem early, most lenders refund the unused months (some after a minimum term of one to three months). Ask, because it changes the true cost of a short bridge considerably.
Rolled-up interest is similar but the interest is added to the loan rather than deducted, so you receive more cash on day one and repay more at the end. Lenders limit it by the LTV at the end of the term, not the start.
Serviced interest means paying monthly, like a mortgage. It gives you the most cash up front and lenders will want proof you can afford the payments. It suits tenanted commercial and portfolio deals.
What the calculator does not include
- Your own solicitor's fees and any searches.
- Stamp duty on a purchase (at the additional-property rate for investment property).
- Our broker fee, which we agree with you in writing before anything is instructed.
- Extension fees if the loan runs over term. Avoid this by borrowing for longer than you think you need; unused months are usually refunded.
About the numbers on this page. Rates, fees and loan-to-values are typical market ranges for unregulated bridging in England, given so you can size a deal. They are not an offer. Your terms depend on the property, the exit, the lender and you.
Run it past a person.
The calculator uses typical ranges. A lender's terms on your deal can be sharper, or not. We find out for free.