Bridging loan calculator
Crunch the numbers without the headache - use our simple bridging finance calculator.
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First things first: what's a bridging loan?
A bridging loan is a short-term loan designed to "bridge the gap" between two transactions - usually when you're buying a property before selling another.
Let's say you've found your dream home, but your current house hasn't sold yet. Rather than miss out, a bridging loan can give you the cash to buy now and repay once your house sells.
It's not just for moving house. You might use a bridging loan to:
- Fund a renovation project
- Buy a property at auction (where completion is fast)
- Solve a temporary cash flow issue
Tip: Bridging loans are typically offered for up to 12 or 18 months on an interest-only basis, although the interest can often be "rolled up", meaning you pay it all at the end, rather than monthly.
When our loan calculator comes in handy
When working out the cost of a bridging loan, remember that fees and interest are often added to the gross loan amount - not just the money you receive - so it's crucial to check what you'll repay in total.
But how do you figure out the costs? Use our bridging loan calculator to understand how much you can borrow and what your repayments could look like. No finance degree required.
Stay on top of your borrowing options
Our bridging loan calculator takes the guesswork out of borrowing. All you have to do is pop in a few details, and it'll show you the estimated costs, interest rates, and total repayment amounts.
Here's what you'll need to enter:
- The amount you want to borrow
- The value of the property you're buying (and selling, if relevant)
- How long you'll need the loan for
- Whether you want to pay interest monthly or at the end
Easy, right? You'll see straight away whether it's affordable, and whether you'll need to rethink your plans. The aim is no awkward surprises later on in the process.
Tip: When you see how your bridging loan interest compares to other loans, you can spot the best deal - a few extra clicks could save you thousands.
It pays to compare - but do it smartly
Not all bridging loans are created equal. Rates and fees can vary a lot between lenders, and small differences can add up to big costs.
That's why it's so important to shop around. Our calculator helps you compare different deals side-by-side, so you can find the one that suits you best.
Look out for:
- Interest rates - usually monthly
- Arrangement fees - often 1-2% of the loan amount
- Exit fees - charged by some lenders when you repay
- Legal and valuation fees - these are often extra
- Broker fees - can be charged to your or the lender
Tip: You can use our bridging calculator alongside a good loan broker for the best deals all-round.
Summing up
In the fast-moving world of property, clarity is key. Whether you're buying a new home, renovating a property, or just curious about your options, our bridging loan calculator can save you time, stress, and potentially thousands of pounds. It puts you in the driver's seat - helping you see the full picture before you commit.
Frequently Asked Questions
How is bridging loan interest calculated?
Lenders base bridging loan interest rates on factors like loan-to-value (LTV), property type, and your repayment plan. A higher LTV or riskier property can mean higher rates. A clear exit strategy, like selling or refinancing, helps keep rates lower. Your credit history and finances are also considered.
Do I need a deposit for a bridging loan?
Yes, most lenders will want a deposit or security. Typically, they'll lend up to 75% of the property's value - so you'll need to cover the rest yourself or with other assets. The more equity you have in your current property, the better your application will look to lenders.
Will a bridging loan affect my credit score?
It can, especially if you miss any of your monthly payments. But if you repay the loan on time, it's unlikely to negatively impact your credit file. Always check the monthly interest payments and make sure you can comfortably handle the net loan amount. Remember that some lenders run soft credit checks during the application process, while others will leave a mark.
Can I get a bridging loan if I'm self-employed or have bad credit?
Possibly. Some specialist lenders are more flexible, especially if you have strong assets or a solid exit plan. Having clear documents showing income and assets can help strengthen your case, while comparing several bridging loan lenders will help you find a deal that matches your finances.
How quickly can I get a bridging loan?
Bridging loans are designed to be fast - in some cases, you can get funds within 3 to 14 days, depending on how quickly valuations, legal checks, and paperwork are done. To speed things up, have your documents ready to go from the start.
Can I repay a bridging loan early?
Yes, most bridging loans can be repaid early, and some lenders may even reduce your interest costs if you do. Always check for any early repayment charges or minimum term conditions. If early repayment is part of your plan, ask lenders about flexible options upfront.
About the author
Lawrence Howlett
Lawrence Howlett brings a results-driven mindset to his writing, shaped by over a decade of experience across finance, legal, and energy sectors. As the founder of Moneysavingadvisors, he’s built a reputation for turning complex financial concepts into clear, actionable insights for consumers. His writing stands out for its clarity, structure, and focus on delivering value.
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