Net vs gross bridging loan: how to calculate what you repay

Last reviewed: 25 September 2026

BridgingLoans.online is a UK bridging-loan introducer operated by PASECOM GROUP LTD (Companies House 17139327, ICO ZC117546). We introduce enquiries to FCA-regulated brokers and lenders. We do not issue loans, hold an FRN as a lender, or make credit decisions. Nothing on this page is a quote, an MCOB illustration, or an offer of credit.

What is the difference between a net and a gross bridging loan?

Net loan — the sterling amount you actually need transferred (for example to complete a purchase, pay an auction balance, or fund works).

Gross loan — the total facility balance used for underwriting and repayment planning: net funds plus the arrangement (facility) fee if it is added to the loan plus retained (or otherwise financed) interest for the agreed term.

That distinction matters because institutional bridging lenders commonly assess maximum loan-to-value (LTV) against the gross amount, not the cash in hand. Focusing only on the net figure is a frequent source of deposit shortfalls.

Related reading: how bridging loans work and bridging loan costs and fees explained.

How do you calculate a bridging loan (net, fee, interest, gross)?

The live calculator on this site uses a transparent retained-interest model (educational defaults; not a product rate):

1. Arrangement fee = net × 0.02 (2% of net in the default model)
2. Retained interest = (net + fee) × monthly rate × term in months
3. Gross loan = net + fee + retained interest
4. Net LTV = net ÷ security value
5. Gross LTV = gross ÷ security value
6. Total cost of credit (fee + interest in this model; excludes valuation, legals and any broker or exit fees unless you add them)

Default calculator inputs: £500,000 security, £250,000 net, 12 months, 0.85% a month retained. Those defaults exist so visitors can see the arithmetic. They are not rates from us and they are not a promise that any lender will price at 0.85% a month or charge 2%.

Run your own figures on the bridging loan calculator, then contact us if you want an introduction.

Worked sterling example (indicative only — not a quote)

Assumptions match the site calculator defaults:

Step by step

• Fee = £250,000 × 0.02 = £5,000
• Interest base = £250,000 + £5,000 = £255,000
• Retained interest = £255,000 × 0.0085 × 12 = £26,010
• Gross loan = £250,000 + £5,000 + £26,010 = £281,010
• Net LTV = £250,000 ÷ £500,000 = 50.0%
• Gross LTV = £281,010 ÷ £500,000 = 56.2%
• Total cost of credit (fee + retained interest in this model) = £31,010
• Total to repay at term (if no early-redemption rebate and no extra fees) = £281,010

Why the gross LTV is higher: the lender is securing the fee and the interest block as well as the cash released. If a lender’s policy cap is, for example, around 75% gross LTV, your maximum net cash is always lower than 75% of value once fee and retained interest are included.

This example is educational. It is not a personal quotation, not an MCOB illustration, and not an offer of credit. Actual lender pricing, fee bases (net or gross), interest-retention rules, early-redemption rebates and exit fees vary.

What do indicative market interest and fee bands look like (as at 25 September 2026)?

The table below is indicative market context only, as at 25 September 2026. Figures are summarised from public Bridging Trends reporting and typical public fee tables. Guidance only. Not our rates. Not a quote. We do not set or guarantee rates.

Always compare total repayable and exit clarity, not a headline monthly rate alone. See also bridging loan costs and fees explained.

Why does gross LTV matter more than net LTV?

Underwriting and many product caps are framed on gross LTV. A borrower who plans a deposit from “75% of purchase price” without allowing for fee and retained interest can discover too late that the cash available (net) is closer to the mid-to-high sixties as a percentage of value in a retained-interest structure.

Practical checks before you commit to a purchase timetable:

• Work backwards from the net cash you need, then check the resulting gross LTV against typical institutional caps.
• Confirm whether the lender calculates the arrangement fee on net or gross.
• Ask whether unused retained months are rebated on early redemption (and any minimum interest period).
• Include valuation, legals and any broker fee in your cash flow, even if they sit outside the gross facility.

Retained, serviced or rolled-up interest — which changes the gross figure?

Retained interest (the calculator default): the lender sets aside the term’s interest from day one and adds it to the facility. Monthly cash payments are usually nil during the term; you repay the gross balance on exit (subject to any rebate).

Serviced interest: you pay interest monthly from income or other sources. Gross may be closer to net plus fee if interest is not financed — affordability evidence becomes more important.

Rolled-up / compounded interest: unpaid interest is added and may compound. Gross at exit can exceed a simple retained block; read the illustration carefully.

None of these structures is “better” in the abstract. The right route depends on exit timing, income evidence, occupancy and lender policy. We do not recommend a product on this page.

Does occupancy change whether a bridge is regulated or unregulated?

Yes — occupancy is a legal fork, not a marketing label.

• If you or a close family member will occupy the security as a dwelling, the facility is more likely to sit in the regulated mortgage perimeter, with MCOB disclosure and affordability rules applying through the lender and any advising broker.
• Investment, commercial or limited-company stock that is not your (or a family member’s) residence more often follows an unregulated route, with different disclosure and protection.

Regulated files commonly have shorter maximum terms and stricter evidence. Unregulated files still require a credible exit and security that the lender will charge. BridgingLoans.online introduces enquiries; we do not decide which perimeter applies — that is a matter for the regulated firm that reviews your facts. Do not treat this paragraph as advice to choose a regulated or unregulated product. See regulated bridging and unregulated bridging.

How should you stress-test the numbers before you enquire?

1. Fix the net cash you truly need — not a rounded wish-list.
2. Apply a realistic fee assumption (often around 1–2%) and a monthly rate from current market bands, not a remembered headline.
3. Multiply interest across the full planned term, then add a contingency month if your exit could slip.
4. Check gross LTV against the security value you can evidence.
5. Add valuation and legal cash you will pay outside the facility.
6. Write down the exit (sale or refinance) with a date that survives delay. See acceptable exit strategies.

When you want a human review, send an enquiry via contact. Use the calculator first so the net/gross split is clear in your own notes.

Common mistakes when people “calculate” a bridge

• Treating maximum LTV as if it applied to net cash.
• Ignoring interest charged on the fee when the fee is added to the loan.
• Forgetting third-party costs that never appear in a simple gross total.
• Assuming 0.85% a month or a 2% fee because those are site defaults.
• Planning an exit that cannot repay the gross balance in time.

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

Figures on this page are indicative and educational only. They are not a personal quote, not an MCOB illustration, and not an offer of credit. BridgingLoans.online (PASECOM GROUP LTD) is an introducer, not a lender.

Last reviewed: 25 September 2026.