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Bridging Loans
Estimate your bridging loan interest, fees and total costs, then compare quotes from specialist UK lenders.
A bridging loan calculator estimates the costs involved in short-term property finance before you approach a lender or broker. By entering a few key details about your borrowing needs, you receive indicative figures that help you compare options and plan your budget with greater confidence.
These figures give you a realistic starting point for conversations with lenders, though they are indicative estimates rather than binding quotes. Your actual rate and fees will depend on your individual circumstances, the property type and the lender's own criteria.
If you are new to this type of finance, read our full guide to bridging loans before using the calculator. It covers eligibility, typical timescales and exit strategies in detail, so you can interpret your results in context.
Bridging loan interest works differently from a standard mortgage. Rather than an annual percentage rate spread across 25 years, bridging rates are quoted as a monthly percentage applied to a loan term that typically runs from 1 to 18 months. The way you pay that interest has a significant effect on the total cost and on how much of the loan you actually receive.
There are three main methods lenders use to calculate and collect interest on a bridging loan.
You make interest payments each month during the loan term, much like a standard interest-only mortgage. Your loan balance stays the same throughout because interest is cleared as it accrues. This method suits borrowers who have regular income to cover the monthly payments and want to keep the total cost of borrowing as low as possible.
Interest is calculated for the entire loan term upfront and added to the loan at completion. You make no monthly payments during the term, but the total amount you owe increases because the interest is included in the gross loan. This is the most common method for borrowers who need the bridging loan to cover a gap where they have no income from the property, such as during a refurbishment project or while waiting for a sale to complete.
Deferred interest sits between the other two methods. Interest accrues monthly but is not collected until the loan is repaid. Unlike rolled-up interest, it is not added to the loan balance at the start, so it does not affect your initial LTV calculation. The total amount repayable at the end of the term is the same as with rolled-up interest, but your gross loan figure remains lower during the term itself.
For a detailed breakdown of where rates currently sit across these methods, see our page on current bridging loan interest rates.
Bridging loans carry several fees beyond the interest rate, and understanding each one is essential for calculating the true cost of your borrowing.
Arrangement fee: charged by the lender for setting up the loan, typically 1% to 2% of the gross loan amount. On a £250,000 loan, this adds £2,500 to £5,000 to the total cost. Most borrowers choose to add the arrangement fee to the loan rather than paying it upfront, though doing so increases the total amount you owe and your gross LTV.
Valuation fee: the lender requires a professional valuation of the security property before releasing funds. Costs typically range from £300 to £1,500 for standard residential properties, depending on the property value and complexity of the valuation.
Legal and solicitor fees: both you and the lender need separate legal representation. Your own solicitor fees typically range from £500 to £1,500, while the lender's legal costs, which you also pay, are usually £500 to £1,000. Some lenders offer dual representation through a single firm, which can reduce the overall legal bill.
Exit fee: some lenders charge a fee when the loan is repaid, typically around 1% of the loan amount. Not all lenders apply an exit fee, so this is worth confirming when you compare quotes from different providers.
Broker fee: if you use a broker to arrange the loan, they may charge a fee of around 0.5% to 1% of the loan amount. Some brokers are paid entirely by the lender's commission and do not charge a separate client fee.
The table below shows a worked example based on a £250,000 bridging loan over a 9-month term at a monthly rate of 0.55%, illustrating how these individual costs add up in a realistic scenario.
The distinction between gross and net loan is one of the most important concepts to understand when using a bridging loan calculator, because it directly affects your loan-to-value ratio and the interest rate you are offered.
The net loan is the amount of money actually released to you or paid to the seller on completion. This is the figure you need to cover the purchase price, pay off an existing mortgage or fund a specific project.
The gross loan is the total facility size, which includes the net loan plus any fees and interest that have been added. If you choose rolled-up interest and add your arrangement fee to the loan, the gross figure can be significantly higher than the net amount you receive.
This matters because most lenders calculate your LTV based on the gross loan, not the net loan. For example, if you borrow a net loan of £200,000 against a property worth £300,000, your net LTV is 67%. But if rolled-up interest and fees push the gross loan to £220,000, your gross LTV rises to 73%, which could move you into a higher pricing band or exceed a lender's maximum LTV threshold entirely.
Several factors influence the rate a lender will offer you:
If your bridging loan is secured on a residential property, check how lenders treat the property type in their LTV calculations by reading our guide to bridging loans for residential property.
Once you have an estimate from the calculator, use it as a benchmark when requesting quotes from bridging lenders. A calculator gives you a useful starting point, but the figures a lender offers will depend on your specific circumstances, and there can be significant differences between providers.
When comparing quotes against your calculator result, work through the following checklist:
It is important to remember that calculator results are indicative estimates only and should not be treated as a binding quote or loan offer. The actual terms you receive will depend on the lender's assessment of your application, the property and current market conditions. Money Saving Advisors compares products from specialist bridging lenders and does not lend directly.
If your project involves property development rather than a straightforward purchase or refinance, you may also want to explore bridging finance for property development, which often involves different LTV limits and drawdown structures.
A calculator provides a useful estimate based on the figures you enter, but it cannot account for every variable a lender considers. Actual rates depend on the property type, your credit profile, the strength of your exit strategy and current market conditions. Treat the result as a starting point for comparing quotes rather than a guaranteed cost. Once you have an estimate, request formal quotes from lenders to confirm the exact interest rate, fees and total repayable amount for your specific circumstances.
Most bridging loan calculators allow you to enter an arrangement fee percentage and an exit fee percentage as part of the calculation. If these fields are included, the result will factor them into the gross loan and total cost figures. However, additional costs such as valuation fees, solicitor fees and broker fees are usually not included in the calculator output and need to be budgeted for separately when assessing the overall cost of the loan.
Monthly (serviced) interest means you pay the interest each month during the loan term, keeping the loan balance unchanged. Rolled-up (retained) interest is calculated upfront and added to the loan, so you make no monthly payments but repay a larger total amount at the end of the term. Rolled-up interest is more common for short-term bridging loans where the borrower has no rental or other income from the property during the loan term.
Most bridging lenders offer loans from £25,000 up to several million pounds, with maximum loan-to-value ratios typically capped at 70% to 75% of the property value. The amount you can borrow depends on the property being used as security, the strength of your exit strategy and the individual lender's criteria. Loans secured on standard residential property may have different LTV limits compared to those secured on commercial or development sites.
Yes. Once you have an estimate from the calculator, you can request formal quotes from specialist bridging lenders through Money Saving Advisors. A lender or broker will review your circumstances, the property details and your planned exit strategy to provide a quote specific to your situation. This process is free and carries no obligation, so it is worth requesting quotes from several lenders to compare rates, fees and overall terms.
Bridging loans are generally more expensive on a monthly basis than standard residential mortgages because they are short-term, higher-risk facilities. Monthly interest rates for bridging loans typically range from 0.44% to 1.5%, compared with annual mortgage rates that work out significantly lower per month. However, because bridging loans run for months rather than years, the total interest paid can be manageable if the loan is repaid quickly within the agreed term.
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