Bridging Loan Calculator

How do I use the bridging loan calculator?

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, 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.

Our bridging loan calculator is designed to make it simple for property investors, landlords and homeowners to calculate the expected monthly interest costs of taking out a bridging loan.

We can offer many different types of bridging finance, including the following:

• Regulated bridging loans
• Unregulated bridging loans
• Commercial bridging loans
• Property refurbishment finance, and
• Development exit finance

As a whole of market broker, we can access the best bridging loan rates in the market and don’t charge broker fees for loans over £100,000, so get in touch if you’re looking for the best deal.

We can offer a full agreement in principle within 1 hour of your enquiry, and manage the whole process from initial enquiry, application process, right through to ensuring your exit strategy is carried out successfully.

How much can I borrow?

We can offer loans from £10,000 with no defined maximum loan size.

We even offer a specialist range of large bridging loans for loans over £1,000,000.

The amount you can borrow is usually limited by how much you can afford to repay and your chosen exit strategy.

Get started – apply for a bridging loan now.

What interest rate will I pay?

The interest rate on bridging loans is usually between 0.39% to 0.95% per month.

The interest rate charged is expressed as a monthly percentage, rather than annual, as this is a form of short-term finance.

The rate you’ll be charged will depend on the type of security offered (residential, commercial, land etc) and whether you plan to live in the property.

In some cases, your credit history can also impact the rate charged. We offer a specialist range of bad credit bridging loans.

How much does a bridging loan cost each month?

A typical bridging loan costs around £390 to £950 per month for every £100,000 borrowed, based on an interest rate of 0.39% to 0.95% per month.

While this is a typical interest cost, in most cases, the interest is added to the loan, meaning you have no monthly payment to make.

This is known as retained interest and is common in the bridge loan market.

Understanding your results

Gross & net loan

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.