Bridging Loan Calculator
Use our easy bridging finance calculator to determine quickly how much a bridging loan could cost you.
Our tool will estimate the interest and fee costs for redemption of the bridging finance for your most recent deal – ie whether you are buying at auction, doing a refurbishment or want to release some equity on your current project. Use the tool as a guideline before you request a tailored quote.
Quick bridging loan quote
Enter your required loan amount, interest rate and term to generate an estimate of your monthly interest and total projected cost. The calculator is geared around interest only, to provide a fast and realistic indicator of how short term finance is likely to cost.
It will exclude additional professional fees that a loan might be subject to, such as valuations, legal costs or lender admin fees, which will vary depending on the lender and the nature of the property. The idea is to determine how the loan interest alone is likely to amount, and not include any fees or charges that may well be deducted from the gross loan.
If you are in a position to repay ahead of schedule, you will only be charged interest for the period the money has been used – bridging loans are usually assessed on a monthly basis.
What the calculator shows:
- Estimate monthly cost (interest to be paid)
- Total interest to be paid throughout the duration of the bridging loan term
- Indicative full redemption figure
- Typical arrangement fee to be paid
- Example net loan, after deductions (if interest and/or fee to be retained)
As you can see this provides a real picture of the real costs associated with a bridging loan, prior to your making the decision to move forward with the finance required.
Typically interest and the arrangement fee in relation to the bridging loan will be subtracted from the gross loan amount, resulting in the net bridging loan.
What affects the chances
Lenders consider the quality of the security put down and include;
- Property Type (Residential, HMO, Mixed use, permitted development)
- Condition (Habitable, or needs work)
- Location and Marketability of it after work has been completed or to be completed
- If a scheme will involve refurbishment and or conversion
- Is the property in good condition?
- Is it in a desirable location?
Your experience may affect the Rate and LTV:-
- If you have had experience on similar projects before
- Your Credit Rating (Bad credit is normally acceptable)
- Personal or Company Guarantee
- Your own cash investment and other assets you possess.
- Do you have experience?
- Do you possess other assets that you own, and a net worth?
The structure of the loan also affects pricing:
- First or second charge
- Loan term
- Required LTV
- Whether interest is retained or added to the loan
- Exit strategy (sale or refinance)
In the majority of cases the interest is retained as some lenders will allow the monthly interest to be added to the loan.
Example bridging loan breakdown
A scenario to case as an example:
- Property value 500,000
- LTV 75%
- Gross loan 375,000
- Interest @ 0.75 per month
- Interest over 12 months; 33,750
- Facility Fee @ 2%; 7,500
- Day one net loan; 333,750
Loan repaid at the end of 6 months; 333,750 plus interest for 6 months 350,625
Interest was 2,812.5 per month. Day one net loan was 333,750. Amount settled after 6 months was 350,625.
You are given a better idea of how retained interest and facility fees will effect net loan provided to you by this.
When bridging works well
Some common situations where bridging loans work appropriately.
You’re buying an auction property and are required to complete within 28 days.
Used primarily for properties that need work before they can be mortgaged or is uninhabitable, and need work to get it to an acceptable standard.
Funding is available while you are applying for planning permission or conversion.
Access to finance is required urgently or if a sale is on hold.
It is borrowing against the equity value not the purchase price.
Who can apply?
Bridging finance is flexible and available to:
- Individuals (employed or self‑employed)
- Borrowers with limited or no income proof
- UK & overseas residents
- Limited companies, LLPs & trusts
- Borrowers with imperfect credit
We lend yo those who need it – individuals with almost any credit status good or bad, UK Ltd Companies, and even individuals who cannot prove their income.
Frequently Asked Questions
Most lenders will require a RICS Red Book valuation, however some lenders will perform a AVM/desktop valuation for low risk properties.
The property type, loan size and LTV all play a part.
Bridging finance is ideal for fast transactions, situations that are outside of the realms of standard mortgages, or projects that involve uninhabitable properties, title splits, conversions, and time sensitive purchases.
The results shown on the calculator are an indication. Please talk to one of our advisers to receive a quotation and approval for your project.
Please contact us at any time and we will be happy to provide you with an accurate quotation and loan approval.