Bridging Loan Calculator
Work out the true cost of a bridging loan — rolled, retained or serviced interest, arrangement and exit fees, net day-one advance and the figure you repay on redemption. No email required, nothing stored.
- Net day-one advance
- £318,500
- Total repaid on redemption
- £359,745
- Loan to value
- 65.0%
- Total interest
- £34,745
- Arrangement fee
- £6,500
- Exit fee
- £0
- Total cost of finance
- £41,245
- Cost per £100k borrowed
- £12,691
Within typical lender limits
Interest plus all fees
Comparable across quotes
Indicative only. Actual terms depend on the asset, your exit, valuation and lender criteria, and exclude valuation and legal costs. This is not a quote or a recommendation.
What the numbers mean
Net day-one advance is the cash that actually reaches your solicitor. With retained interest it is materially lower than the gross loan, which is the single most common surprise on a first bridging deal.
Rolled interest compounds. Over 12 months at 0.85% pcm, rolled interest costs roughly 10.7% of the loan against 10.2% simple — small on a short term, meaningful on 18 months at a higher rate.
Cost per £100k borrowed is the only fair way to compare two quotes with different fee structures. Compare that figure, not the headline monthly rate.
UK bridging loan rates by scenario
Ranges seen across the lenders we place with in 2026. Bridging is priced case by case, so use these to sense-check a quote you have already been given — a rate materially outside these bands usually signals something about the security, the exit or the broker, not the market.
| Scenario | Indicative rate | Fees | Term | Notes |
|---|---|---|---|---|
| Prime residential, ≤60% LTV | 0.60% – 0.75% pcm | 1.5% – 2% arrangement | 3 – 18 months | Clean exit, standard security, experienced borrower |
| Residential, 60% – 75% LTV | 0.75% – 0.95% pcm | 2% arrangement | 3 – 18 months | The bulk of UK bridging completions sit here |
| Commercial / semi-commercial | 0.85% – 1.15% pcm | 2% arrangement, occasional 1% exit | 6 – 24 months | Priced on the asset and the tenant, not just LTV |
| Second charge | 0.95% – 1.35% pcm | 2% – 2.5% arrangement | 3 – 18 months | Needs first-charge consent and a deed of priority |
| Heavy refurbishment / conversion | 0.85% – 1.20% pcm | 2% arrangement + monitoring | 9 – 24 months | Works funded in arrears drawdowns against surveyor sign-off |
A £500,000 bridge over 12 months
A £500,000 gross bridge on an £800,000 property is 62.5% loan to value. At 0.85% per month with interest rolled, interest over 12 months is about £53,400 and the 2% arrangement fee £10,000.
Day one, the solicitor receives £490,000 — gross less the fee. On redemption you repay £553,400. Total cost of finance is £63,400, or £12,680 per £100,000 borrowed. Add roughly £1,200 valuation and £2,500–£4,000 in legal costs across both sides.
Take the same loan with retained interest and day one drops to about £436,600, because the twelve months of interest is deducted up front. If you need £490,000 in hand, the gross loan has to rise — which raises the LTV, and on a tight case that is what breaks the deal.
Turn these figures into indicative terms
Send the four details every bridging lender asks first and we come back with realistic terms — usually the same working day — from lenders that write your security type and your exit.
Email me these figures and indicative terms
Tell us the four things every lender asks first. We come back with realistic terms, usually the same working day.
Bridging loan questions, answered
How much does a bridging loan actually cost?
On a £500,000 loan at 0.85% per month over 12 months with a 2% arrangement fee, rolled interest costs roughly £53,400 and the fee £10,000 — about £63,400 all in, or £12,680 per £100,000 borrowed. Add valuation and legal costs on top, typically £2,000–£6,000 combined.
What is the difference between rolled, retained and serviced interest?
Rolled interest accrues and compounds on the balance and is repaid in full at redemption. Retained interest is deducted from your day-one advance, so you borrow more gross to receive the same net. Serviced interest is paid monthly in cash and keeps the redemption figure lowest, but requires provable income.
What LTV can I get on a bridging loan?
Most UK bridging lenders cap at 75% of open market value on residential and 65%–70% on commercial. Higher gearing is available where a second asset is added as security or where the loan is against the lower of purchase price and value on a below-market purchase.
How quickly can a bridging loan complete?
Two to three weeks is realistic on a straightforward residential case with a responsive solicitor. Seven to ten days is achievable where title is clean, a desktop or drive-by valuation is accepted and legals are already prepared. Anything faster is usually a repriced deal rather than a faster one.
Do I need to prove income for a bridging loan?
Not in the way a mortgage requires. Bridging is underwritten on the security and the exit. Income only matters where interest is serviced monthly rather than rolled or retained.
What happens if my exit is late?
Most lenders will grant an extension at a revised rate, but default interest of 1.5%–3% per month applies once the term ends without one. Agreeing an extension four to six weeks before expiry is far cheaper than negotiating after it.