Bridging Loan Calculator
Use this bridging loan calculator to estimate what a short-term bridging loan could cost. Enter the loan amount, the property value, the term in months, a monthly interest rate and the lender fees as a percentage of the loan, and the calculator shows your loan-to-value (LTV), the monthly interest, the total interest if you pay it monthly (serviced) or let it roll up until the end of the term, the fees and the total cost.
Bridging loan rates are quoted per month rather than per year. Typical rates range from 0.4% to 1.5% per month depending on the loan amount, term, property, LTV and your circumstances. The default figures below are illustrative only and are not an offer of finance; rates vary and your actual quote depends on the lender's assessment.
Illustrative only. Rates vary and these figures are not a quote or an offer of finance. Valuation, legal and any exit fees are not included unless you add them to the fees percentage.
Bridging loan calculator FAQs
- How is bridging loan interest calculated?
- Interest is charged as a percentage of the loan each month. At 0.75% per month, a £200,000 loan costs £1,500 interest a month, or £9,000 over 6 months if the interest is paid monthly, plus fees.
- What is the difference between serviced and rolled-up interest?
- Serviced interest is paid every month, so the balance stays the same. Rolled-up interest is added to the loan and repaid in one go when the loan ends, so no monthly payments are needed but the total interest is slightly higher because interest is charged on interest. Some lenders also retain interest, deducting it from the advance at the start.
- What fees should I include?
- Most bridging loans carry an arrangement fee, usually 1-2% of the loan, plus valuation and legal fees and sometimes an exit fee. Add any percentage-based fees to the fees box to see their effect on the total cost.
- What LTV can I borrow at?
- The maximum loan-to-value depends on the property, the lender and your exit strategy. Lower LTVs usually attract lower monthly rates. The calculator shows your LTV so you can see where your loan sits.
- Is the calculator result a quote?
- No. The results are illustrative only. To get a tailored quote and a decision in principle, send us your details through the enquiry form and a specialist will come back to you.
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