Bridging Loan Calculator 2018-02-02T14:52:10+00:00

Free Bridging Loan Calculator

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Our simple-to-use bridging finance calculator is designed to quickly work out the likely costs of bridging loans. On top of the interest, the calculator will also allow quick calculations of fees and LTV (Loan to Value).

For more information on bridging loans visit our guide page or read through our FAQs.

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How Do I Use the Bridging Loan Calculator?

Our bridging loan calculator is designed to make the process of finding out the likely costs of taking out a bridging loan simple. There are countless lenders out there, all of whom will charge different interest rates and arrangement fees.

To use the calculator, fill in each box as accurately as possible and press calculate to receive your results instantly.

  • Property Value – This is the value of the property to be used as security for the loan.
  • Outstanding Mortgage – This box only needs to be completed if the mortgage is not going to be repaid by the bridging loan. If there is a mortgage outstanding that will be repaid in full using the bridging loan, please leave the figure as ‘0’.
  • Loan Amount Required – This is the net loan required – the amount you need to receive before any fees or interest are added to the loan.
  • Interest Rate – This is the interest rate charged for the bridging loan. The calculator, as with most bridging loans calculates based on a monthly interest rate.
  • Lender Arrangement Fee – This is the fee charged by the lender for arranging the facility. Input the percentage charged by the lender.
  • Lender Exit Fee – Some lenders charge ‘exit fees’ on their facility. Again, this is calculated from a percentage, so please input the percentage charged.

Want to Know More…?

Read on below or use the following panels to look for more information on Bridging Loans.

The Importance of Data Accuracy

Although our calculator will always provide accurate figures, the output will only ever be as realistic as the details that are input.

When considering the terms to input, it is realistic to use the terms as set out below, assuming your circumstances are straightforward and your credit history clean. Of course, bridging loan lenders are generally flexible and will allow for some complications, but if your circumstances are particularly complex, it may be worth calling us for a quote as realistic terms may be hard to predict.

Unregulated – Residential Property

55%65%75%
0.44%0.54%0.64%

Regulated – Residential Property

55%65%75%
0.44%0.54%0.64%

Commercial & Semi-Commercial

55%65%75%
0.65%0.70%0.75%

Land

55%65%N/A
0.75%0.95%N/A

In general, for a straightforward application, it is safe to use the monthly interest rates above when using the calculator. Of course, not all our applications are written on the products above, so they are best used as a guide only.

Inputting the Lender Arrangement Fee & Lender Exit Fee

Most bridging loans are subject to a lender arrangement fee of 2% of the loan amount. When using our bridging loan calculator, this is generally the safest figure to input.

As an independent bridging loan broker, we will always do our best to reduce the cost of finance where possible, and as such, we may well be able to negotiate a discount to 1.5%, or even 1% on occasion.

Reductions in lender arrangement fee are more likely the larger the loan is. Lender exit fees are more difficult to quote, as they tend to vary from lender to lender. As we’re always looking to reduce your costs, there is a good chance we will be able to fund your application without a lender exit fee.

Understanding Your Results

Gross & Net Loan

The calculator refers to gross loan and net loan figures. Although this can seem confusing at first, it is quite simple.

  • The gross loan is the total amount borrowed including all fees, charges and rolled up interest.
  • The net loan is the amount that is released to you and does not include any fees, charges or interest.

When calculating how much money you will be able to use, use the net loan. When calculating how much money you will repay to the lender, use the gross loan.

Total Interest

Total interest is simply the amount of interest charged over the course of the loan. This is commonly added to the loan and paid when the bridging loan is repaid. Alternatively, it can be deducted from the loan, meaning the net loan is reduced by the cost of the interest.

Loan to Value (Net Loan)

The loan to value (net loan) is designed to tell you what the loan to value of your borrowing is. Loan to value is a tool used by lenders to express the ratio of the amount borrowed as a percentage of the property value. This figure is important, as often the maximum loan will be restricted by the maximum loan to value available.

The maximum loan to value we can generally achieve depends on different property types. We can generally achieve the following:

SecurityMax LTV
Residential (Unregulated)80%
Residential (Regulated)70%
Commercial70%
Land with Planning65%
Land Without Planning50%

More Information…

Use the panels below to read more on Bridging Loans.

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