Bridging
Live Calculator
Bridging Finance

Bridging Loan Calculator

Calculate bridging loan costs including interest, fees, and total repayment. Compare retained vs rolled interest options.

AI-Powered
Free to use
Loan details
Enter your bridging requirements

Interest deducted upfront from loan advance

Indicative Bridging Rates (Dec 2024)

Your LTV: 67% — Typical rates: 0.75-0.95% pm

View all rate bands
50% LTV or less0.55-0.75% pm
51-60% LTV0.65-0.85% pm
61-65% LTV0.70-0.90% pm
66-70% LTV0.75-0.95% pm
71-75% LTV0.85-1.10% pm

Rates vary by lender and deal type. Contact us for personalised quotes.

Loan costs
Total bridging costs breakdown
LTV

66.7%

Standard

Monthly Interest

£1,700

Per month

Total Interest

£20,400

Over 12 months

Total Fees

£8,500

All fees combined

Total Cost of Finance

£28,900

Effective Annual Rate

14.5%

Loan Summary (retained interest)

Gross loan£200,000
Net advance (Day 1)£175,600
Gross redemption£202,000

Fee Breakdown

Arrangement fee (2%)£4,000
Exit fee (1%)£2,000
Valuation£500
Legal fees£2,000
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About the Bridging Loan Calculator

What it does and how it helps you

The Bridging Loan Calculator helps UK property investors and developers calculate the true cost of bridging finance. Model interest costs (retained, rolled, or serviced), arrangement fees, exit fees, and see your net Day 1 advance and total redemption amount.

Compare retained vs rolled vs serviced interest
LTV calculations with live rate guidance
Net advance and redemption calculations
Total cost of finance breakdown

How It Works

Understanding the calculation method

Bridging loans are short-term property finance (typically 3-24 months) designed to 'bridge' a timing gap. Here's how the costs work: Interest Types: - Retained: Interest deducted upfront from your advance (lower net proceeds, lower exit cost) - Rolled: Interest compounds monthly and added to redemption (higher net proceeds, higher exit cost) - Serviced: Interest paid monthly during term (highest net proceeds, manageable monthly cost) Fee Structure: - Arrangement fee: 1-2.5% charged upfront - Exit fee: 0-1.5% charged on redemption - Valuation fee: £500-£1,500 depending on property value - Legal fees: £1,500-£3,000 for lender's solicitor The calculator shows your net Day 1 advance (what you actually receive), gross redemption (what you must repay), and total cost of finance. This helps you compare lenders and choose the right interest structure for your project.

When to use this calculator

Use this calculator when comparing bridging loan quotes, planning property purchases with timing constraints, funding refurbishment projects, or assessing whether you can afford bridging costs until your exit strategy completes. Essential for understanding the true cost before committing to bridging finance.

Frequently Asked Questions

Common questions about this calculator

Retained interest is deducted upfront from your loan advance, reducing what you receive on Day 1 but keeping your exit cost lower. Rolled interest compounds monthly and is added to your redemption amount, giving you more cash upfront but costing more overall. Retained typically saves 10-15% on total interest cost.
Bridging rates range from 0.55% to 1.25% per month (6.6-15% annually) depending on LTV and property type. Lower LTVs (under 60%) get the best rates. Rates at 50% LTV: 0.55-0.75% pm. At 75% LTV: 0.85-1.10% pm. Plus arrangement fees of 1.5-2.5%.
Most bridging loans are 3-24 months. Some lenders offer up to 36 months. You'll typically pay the same monthly rate regardless of term, but arrangement and exit fees are based on the loan amount. Many borrowers exit early when their property sells or refinances.
The Day 1 advance is the actual cash you receive after all upfront fees and retained interest are deducted from the gross loan. This is critical for knowing if you have enough to complete your purchase and start works. Always budget based on net advance, not gross loan.
Yes, most bridging loans allow early redemption. Some charge exit fees (typically 0-1.5% of loan amount). Others charge minimum interest terms (commonly 3 months). Always check the redemption terms before committing, as these can significantly affect your total cost if you exit early.

Related Property Terms

Bridging finance UKShort-term property loanRetained interestRolled interestBridging LTVArrangement feeExit fee bridgingProperty development financeFast property financeBridge loan calculator