Bridging Loan Calculator UK

Net Loan Amount (£)

Monthly Interest Rate (%)

Loan Term (Months)

Property Value (£)

Existing Mortgage (£)

Interest Type

How to Use

Enter net loan amount needed before fees or interest.
Set monthly rate based on LTV (lower LTV gets better rates).
Specify term, property value, and any existing mortgages for LTV.
Choose roll-up (added to loan) or monthly payments.
Click Calculate for full breakdown including early exit options.

Calculation Principles

Net loan is funds released to you. Facility fee (tiered: 2% under £125k, down to 0.4% over £2.4m) adds to gross. Interest rolls up monthly on growing balance or pays separately. LTV = (net loan + existing mortgage) / property value x 100; max typically 75%. Early settlement charges interest only to exit date, no penalties usual. Gross = net + fee + full-term interest. Other costs estimated by property value/location.

FAQ

Who qualifies? Age 18+, UK resident, property equity for security (residential/commercial/land), clear exit plan like sale/refinance.
Max LTV? Often 75%, up to 80% for strong cases; multiple properties combine for lower effective LTV.
Speed? 48 hours possible, typical 2-4 weeks with valuation.
Bad credit? Possible if exit strong and security sound; history less checked than mortgages.
Extensions? Negotiable if delays; re-bridge may extend but adds costs.
Risks? Secured on property; default risks repossession. Always plan exit.

Fee Comparisons

Fee Type	Typical Range	Factors
Facility (Arrangement)	0.4%-2%	Loan size, LTV
Valuation	£500-£2,500	Value, type (desktop/full)
Admin	£100-£300	Lender
Legal	£1,000-£3,000	Lender solicitor
Exit/Redemption	£0-£120	Few charge

Ranges from multiple lenders; broker negotiates lower. [web:1][web:2]

Common Pitfalls

Overlooking LTV: Existing debts inflate it, raising rates/fees.
Ignoring roll-up: Balance grows fast; check monthly vs full-term.
Exit delays: Assume 1-2 extra months; auctions need 28-day completion.
Fee underestimation: Valuations/legal add 1-2% unexpectedly.
No broker: Direct deals miss negotiated rates/fees.

References

HomeOwners Alliance. (2025). Bridging Loan Calculator. hoa.org.uk/bridging-loan-calculator/. [web:1]
KIS Bridging Loans. (2025). Bridging Loan Calculator. kisbridgingloans.co.uk/bridging-loan-calculator/. [web:2]
Financial Conduct Authority. (2024). Consumer Credit Sourcebook (CONC). fca.org.uk.
Bank of England. (2025). Mortgage Lenders and Administrators Return (MLAR) Statistics. bankofengland.co.uk.