Estimate your bridging loan costs
Bridging Loan Calculator
Borrow from £50k onwards, rates from 0.55% per month
- No Broker Fee
- Proven Track Record
- Expert Guidance & Support
- Whole of market access
“Use our bridging loan calculator to unlock fast, flexible funding solutions. Whether you’re securing a property, completing a renovation, or bridging a financial gap, we can help you estimate your costs and get the funds you need quickly”
Estimate Your Costs
Use our calculator to estimate your monthly interest payments and overall borrowing costs.
Compare Rates
See how different loan terms & amounts affect your monthly repayments.
Expert Guidance
Our advisors can help you understand the results and find the best bridging loan for your needs.
Access to Lenders
We work with a wide range of lenders to find you the most competitive bridging loan deals.
Explore Bridging Loan Costs with Our Calculator
What is a Bridging Loan Calculator?
A Bridging Loan Calculator is a simple tool designed to help you estimate the costs associated with short-term property financing. By inputting a few key details, you can gain a clear picture of potential monthly interest, arrangement fees, and total loan costs—empowering you to make informed decisions with ease.
How to Use the Calculator
Enter Property Value (£): Provide the estimated value of the property you wish to use as security.
Loan Required (£): Input the exact amount you need to borrow.
Monthly Interest Rate (%): Add the lender’s interest rate for your loan (usually provided during discussions).
Number of Months: Specify how long you need the loan (from 1 to 36 months).
Arrangement Fee (%): Include the lender’s fee for setting up the loan (commonly 1-2%).
Exit Fee (%): Input any additional fees charged upon loan repayment, if applicable.
Click “Calculate” to see an instant breakdown of your potential costs. These results are indicative and subject to a full application.
For further guidance, visit our dedicated guide on How Bridging Loans Work.
Bridging Loan Calculator
How Much Can I Borrow?
*These results are indicative and subject to a full application. Consult an advisor for a full assessment.*
Recent Case Studies
£8.5 Million Bridge Loan
Aparthotel Conversion
Funding provided to refinance an existing loan and raise additional capital for refurbishment work on a large-scale aparthotel conversion. This project aimed to transform the property into a modern, high-yield investment asset, enhancing its market appeal and profitability.
£8.9 Million Bridge Loan
500 Acre Private Estate
Bridge loan arranged to refinance a sprawling private estate, raise working capital for the business, and provide additional time to sell the asset. The funding supported the borrower in growing their business operations while ensuring the estate was sold at its optimal value.
£3.8 Million Bridge Loan
Place of Worship
Finance secured at the last moment to acquire a place of worship after the original lender failed to perform. The funding enabled the property’s transformation into a functional community space with modern amenities and was later refinanced into a long-term commercial loan.
£6.2 Million Bridge Loan
Vacant Commercial
Bridging loan arranged to provide working capital for overseas business operations for an ultra-high-net-worth client. The property, held via a complex ownership structure, was a large vacant commercial space for sale. The bridge loan enabled the client to secure the right sale price while meeting immediate needs.
£4.7 Million Bridge Loan
Semi-Commercial Property
100% bridge loan secured quickly for the acquisition of a semi-commercial property by leveraging equity from an existing property. The deal facilitated future rental income through combined retail and residential spaces and was later refinanced into long-term commercial mortgages.
£2 Million Bridge Loan
Development Exit
A development exit loan was arranged to refinance a completed development held via an offshore ownership structure. The funding enabled the borrower to sell the flats over time at the right price, avoiding a fire sale. The bridge provided the flexibility needed to maximize returns.
£1.15 Million Bridge Loan
Regulated Residential
Bridge loan tailored for the refinance of a regulated residential property and to raise capital for planning costs for additional homes on the spare land. The funding facilitated the borrower’s expansion plans and allowed time to transition into a development loan.
£2.5 Million Bridge Loan
Land Acquisition Loan
Using equity from existing properties, funding was arranged for the acquisition of land, enhancing planning permissions and providing the borrower with time to prepare for future development opportunities. The deal supported strategic value creation for upcoming projects.
Understanding Bridging Loan Interest Options
Bridging loans offer flexibility not just in their speed and structure, but also in how interest is handled. Borrowers often face a choice between retained interest and serviced interest, each catering to different financial situations. To help you make an informed decision, we’ve outlined the key differences between the two, with a clear example to show how costs and proceeds vary. Explore below to find the right option for your needs.
Retained vs. Serviced
Retained Interest
Serviced Interest
The interest for the entire loan term is deducted upfront from the loan amount.
The borrower pays the interest monthly during the loan term.
Borrowers do not have to pay monthly interest during the loan term, as it's already accounted for.
This allows the borrower to access the full loan amount upfront without any interest deductions.
Suitable for borrowers who may not have cash flow to service monthly payments.
Ideal for borrowers with regular cash flow to meet monthly interest payments.
Here’s an example comparing the impact of retained and serviced interest on a typical bridging loan. This demonstrates how each option affects your net proceeds and monthly obligations. The assumption for this example is based on a property value of £500,000, a Loan-to-Value (LTV) of 75%, a term of 12 months, an interest rate of 1% per month, and an arrangement fee of 2%.
| Loan Option | Gross Loan (£) | Arrangement Fee (£) | Interest Deducted (£) | Monthly Payment (£) | Total Interest (£) | Net Loan Proceeds (£) |
|---|---|---|---|---|---|---|
|
Retained Interest |
£375,000 |
£7,500 |
£45,000 |
£0 |
£45,000 |
£322,500
|
|
Serviced Interest |
£375,000 |
£7,500 |
£0 |
£3,750 |
£45,000 |
£367,500
|
Lets talk about Bridging Lons
Why choose Mortgage.One for your Bridging Loan Journey?
- Transparent Fee Structure: Unlike many brokers, we don’t charge you additional bridging loan brokerage fees. Our income comes from lender procurement fees, ensuring transparency and saving you money on your short-term funding needs.
- Proven Track Record: We've successfully arranged significant bridging and property finance solutions, helping clients secure funds quickly for time-sensitive opportunities. Discover our case studies for real-world success stories.
- Strong Lender Relationships: Our extensive network includes bridging lenders, private funds, and family offices, giving you access to exclusive deals and favorable terms, whether for regulated or non-regulated loans..
- Informed Decision-Making: Leverage our bridging loan calculator and expert resources to make confident choices. Analyze LTVs, interest payment options, and exit strategies to tailor your loan to your needs.
- Wide Range of Bridging Options: We compare a vast array of bridging loan deals, whether regulated or non-regulated, to secure the most competitive terms tailored to your requirements. From residential purchases to commercial projects, explore your options with us!
- Specialist Bridging Loan Expertise: Whether you’re acquiring property at auction, refinancing for development exit, or unlocking equity for a new investment, our team understands the complexities of bridging finance.
- Save Time & Secure Deals Faster: We streamline the bridging loan process, helping you from application to approval in as little as a week. Focus on your projects while we handle the legwork.
- Dedicated Bridging Loan Assistance: Get bespoke advice and support from our specialist advisors who understand the urgency of bridging finance and guide you through each step of the process with precision.
Personalized service, every time
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Understand How the Bridging Loan Calculator Works
A bridging loan calculator is a tool designed to estimate the costs associated with a bridging loan. By inputting details such as property value, loan amount, interest rate, and loan term, it provides an indicative breakdown of costs, including monthly interest, arrangement fees, and total interest. It also calculates the net advance you can receive after fees.
Example: If your buyer pulls out last minute, a bridging loan can keep your property chain intact.
To use the calculator, you need the following:
- Property Value: The market value of the property being used as security.
- Loan Required: The amount you want to borrow.
- Interest Rate: The monthly interest rate (in %).
- Loan Term: The duration of the loan in months.
- Arrangement Fee: The fee charged by the lender (in %).
- Exit Fee: If applicable, the percentage charged at the end of the loan.
No, the results are indicative and based on the inputs provided. Actual costs may vary depending on the lender’s evaluation, additional fees, and other factors. It’s recommended to consult an advisor for a more accurate assessment.
Tip: If you’ve shortlisted a property at auction, it’s wise to consult an experienced bridging loan advisor beforehand and arrange a decision in principle. This ensures you can bid confidently and act quickly after a successful bid.
The calculator includes arrangement and exit fees based on the percentages entered, but it does not account for additional costs like valuation, legal, or broker fees. These may apply and should be discussed with your advisor.
The calculator provides a reliable estimate based on your inputs. However, accuracy depends on the data entered and assumes no additional complexities in the transaction. Always verify costs with a lender or advisor before proceeding.
LTV is the ratio of the loan amount to the property value, expressed as a percentage. The calculator computes this automatically to show the borrowing percentage against the property value.
The calculator assumes monthly interest and reflects the monthly cost and total interest payable over the term. For retained interest, the total interest would be deducted upfront, which can be discussed with an advisor.
Bridging loans usually have terms ranging from 1 to 36 months. They are designed for short-term use to bridge financial gaps until long-term finance, such as a mortgage, is arranged or a property is sold.
Tip: Some lenders have a minimum term commitment, often around 3 months. Be sure to check this, especially if you plan to repay the loan earlier, as you may still be liable for the minimum term interest.
Adjusting the loan term or interest rate will directly impact the monthly interest, total interest cost, and net advance. Use the calculator to experiment with different scenarios and see the impact on costs.
Adjusting the loan term or interest rate will directly impact the monthly interest, total interest cost, and net advance. Use the calculator to experiment with different scenarios and see the impact on costs.
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