UK bridging loan calculator

How the calculator works

Understanding the true cost

Bridging is short-term and asset-backed. Lenders usually quote a monthly rate rather than an annual one, and they often retain or roll up interest instead of collecting it each month like a repayment mortgage. That is why the gross loan — and the gross LTV — matter more than the cash you actually receive.

With the default settings the calculator follows the same retained-interest arithmetic as the previous public calculator:

• Arrangement fee = net loan × 2%
• Interest = (net loan + fee) × monthly rate × term in months
• Gross facility = net loan + fee + interest
• Gross LTV = gross facility ÷ security value

The defaults are £500,000 security, £250,000 net, 12 months and 0.85% a month retained, with the 2% fee added to the loan. They exist so you can see the arithmetic; they are not an offer and not a rate from us. Change any input and every line of the estimate, including the month-by-month schedule, updates.

Net vs gross worked example

The net loan is the cash you need for a purchase, auction balance, refurbishment or capital raise. The gross loan adds the 2% facility fee when it is retained in the facility, plus retained or rolled-up interest for the term. Using the live defaults:

On these figures the net LTV is 50.0% but the gross LTV is 56.2%, because the lender is securing the fee and a full year of interest as well as the cash released. The fee is also added before interest is worked out, so you pay interest on the fee. Valuation, legal and broker costs sit outside this total unless you add them under the optional fees.

For the full step-by-step method, including how to work backwards from the cash you need, read net vs gross bridging loan: how to calculate.

Why LTV is often discussed at 75%

Many UK bridging lenders cap exposure at around 75% of the security value on a gross basis. Because the fee and retained interest sit inside that cap, the cash you actually receive is lower — often nearer the high 60s per cent of value on a full-term retained file. If the calculator shows a gross LTV above 75%, it flags a warning: a larger deposit, a shorter term or additional security may be needed. Commercial property and land are usually capped lower still.

Indicative monthly rate bands (October 2026)

Guidance only. Not our rates. Not a quote. We do not lend, so we do not set or offer rates. The bands below summarise dated public material so you can choose a sensible input for the calculator.

As at 4 October 2026. Bank of England Bank Rate was 3.75% in late September 2026. The calculator’s 0.85% a month and 2% fee are teaching defaults inside the mainstream band — not a market claim and not our rate.

Prime pricing tends to need low LTV, a standard house or flat, clean credit and a documented exit. Many completed cases land in the mainstream band once real-world features are added. Bank Rate influences lenders’ funding costs, but bridging is priced mainly on the security, the LTV and the exit rather than moving point for point with it. Try the calculator at the top and bottom of the band that matches your file to see how much the rate really changes the total. Our costs and fees guide sets out the same bands alongside valuation, legal and exit fees.

Regulated vs unregulated occupancy

Occupancy is a legal dividing line, not a marketing label. The calculator arithmetic is the same either way, but the process, the maximum term and the protections are not. Read more on regulated bridging and unregulated bridging.

Interest types in this calculator

Retained (default) uses simple interest on the facility for the whole term: fee = net × 2%; interest = (net + fee) × monthly rate × term. There is usually no monthly payment during the term, and many lenders rebate unused retained months if you redeem early, subject to any minimum interest period.

Serviced assumes you pay the monthly interest from income or other funds, so it is not added to the gross facility. Gross stays closer to net plus fee, but the lender will want evidence that you can meet the payments.

Rolled-up compounds interest monthly on the outstanding balance. That grows faster than simple retained interest, and the gap widens the longer the term runs. Open the month-by-month schedule to see the balance build.

For all three methods side by side on the same £250,000 example, read retained vs serviced vs rolled-up interest.

Optional fees

Valuation, legal and broker costs are usually paid separately rather than added to the loan. An exit percentage, if a lender charges one, is applied at redemption in this model. Defaults are zero so the core numbers stay aligned with the previous calculator. Add your own figures to see the full cost of the transaction, then compare total repayable rather than a headline monthly rate. Our bridging loan costs and fees guide explains each charge.

Before you rely on the numbers

Model a realistic term with a buffer month in case the exit slips; interest keeps running and an extension is not a right. Check whether your exit is fixed or only planned — open vs closed bridging loans explains why that changes pricing. If your need runs well beyond two years, or speed is not the problem, read alternatives to bridging finance before you enquire. For other uses, the advice centre lists every guide and use-case page.

Your home or property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Indicative estimate only. Not a quote, illustration under MCOB, or offer of credit. BridgingLoans.online is a trading name of PASECOM GROUP LTD, an introducer, not a lender.

Last reviewed: 4 October 2026.