How Your Bridging Loan Estimate Is Calculated
Bridging lenders normally consider the total debt secured against the property, not only the cash you want to receive. The calculator therefore uses your requested net loan, any mortgage balances that will remain on the properties, fees added to the facility and, where selected, rolled-up interest.
It then estimates the gross LTV at the end of your selected term and applies the corresponding indicative rate band. If rolled-up interest causes the gross LTV to move into a higher band, the calculator uses the higher rate.
Indicative Rate Bands Used By the Calculator
The calculator selects a rate based on the loan size and projected gross loan-to-value at the end of the chosen term.
| Loan size | Estimated gross LTV | Indicative monthly rate |
|---|---|---|
| Below £200,000 | 0% to 50% | 0.54% |
| Above 50% to 55% | 0.55% | |
| Above 55% to 60% | 0.57% | |
| Above 60% to 70% | 0.60% | |
| Above 70% to 75% | 0.64% | |
| £200,000 and above | 0% to 60% | 0.53% |
| Above 60% to 70% | 0.57% | |
| Above 70% to 75% | 0.64% |
These are calculator assumptions, not guaranteed lender rates. Pricing and eligibility will depend on the property, valuation, exit strategy and lender criteria.
Fees Included in the Estimate
The estimate distinguishes between fees added to the lender facility and costs normally paid separately.
| Cost | Calculator assumption | How it is treated |
|---|---|---|
| Lender arrangement fee | 2% of the net loan | Added to the facility |
| Telegraphic transfer fee | £25 | Added to the facility |
| Lender administration fee | £245 | Added to the facility |
| Broker fee | £495 | Payable separately |
| Estimated legal fees | £2,000 | Payable separately |
| Redemption fee | £40 | Payable separately |
| Valuation fee | Variable | Not included |
Actual lender, valuation and legal costs vary. The calculator shows indicative figures so that you can compare the likely components of the overall borrowing cost.
Our indicative rates are based on current pricing available across lenders we work with and are reviewed regularly by our bridging team for accuracy.
Want to learn more about how rates work? Read our full guide on bridging loan interest rates.
Understanding Your Bridging Loan Calculator Results
The calculator separates the money you want to receive from the total amount secured against the property. This makes it easier to see why the facility balance and gross LTV can be higher than the requested loan.
Indicative Monthly Rate
The estimated rate applied to the facility each month. It is selected using the projected gross LTV for the chosen term. It is not a guaranteed lender rate.
Net Bridging Loan
The amount you want to receive before interest and fees are added. Where an existing mortgage will remain in place, that balance is also included when the calculator estimates LTV.
Net LTV
The requested net bridging loan plus any mortgage balances remaining on the security properties, divided by their combined estimated value.
Gross LTV
The projected facility balance, including fees added to the loan and any rolled-up interest, plus retained mortgage balances, divided by the combined value of the security property used as collateral.
Gross LTV is often the more important figure when a lender assesses pricing and eligibility because it reflects the expected total secured debt. A bridging loan can be secured against multiple properties and existing borrowing across those assets matters when calculating your borrowing potential.
Estimated Interest
The interest generated over the selected period using the calculator's indicative monthly rate. With rolled-up interest, each month's interest is added to the balance before the next month's interest is calculated.
Cost of Borrowing
The estimated interest for the selected cost period plus the standard fees shown in the calculator. This is not the same as the redemption balance because it excludes the original net loan and includes separately payable fees.
Loan Redemption Balance
The estimated amount owed to the lender when the bridge is repaid. For rolled-up interest, this includes the net loan, lender fees added to the facility, and accumulated interest.
Depending on the lender, charges due on repayment may also be described as exit fees or a redemption administration fee. Separately payable broker, legal, and redemption fees are not added to this balance.
Worked Bridging Loan Example
This example shows how a bridging loan works in a common scenario where you use a bridging loan to borrow money for a new property before selling another.
Suppose you require a £250,000 net bridging loan, secured against one property valued at £600,000, with no mortgage remaining after completion.
You select a 12-month maximum term and choose to roll up the interest.
Indicative Result
- Net bridging loan: £250,000
- Fees added to the facility: £5,270
- Opening lender facility: £255,270
- Indicative monthly rate: 0.51%
- Net LTV: 41.67%
- Projected gross LTV after 12 months: 45.22%
If the loan were repaid after six months, the estimated rolled-up interest would be £7,912 and the estimated cost of borrowing, including the standard fees used by the calculator, would be £15,717.
If the loan remained outstanding for the full 12 months, the estimated interest would be £16,068. The estimated lender redemption balance would be £271,338, while the total estimated cost of borrowing, including the separately payable fees, would be £23,873.
This example is illustrative. It excludes valuation costs and assumes the rate, property value and selected interest treatment remain unchanged. A lender may calculate interest daily, apply minimum interest or use different fees.
Why Your Broker-Backed Bridging Loan Quote May Differ
The calculator applies a consistent set of assumptions so that you can explore a scenario quickly. A lender will assess the full proposal, and the rate, fees and available loan may change according to:
- The property type, condition, location, and valuation
- Whether the loan is regulated or unregulated
- The strength and timing of your exit strategy
- The required speed of completion
- Your experience and credit profile, including your credit history
- Whether the property produces income, requires refurbishment, or forms part of a property investment case
- The number of properties offered as security
- Existing borrowing that will remain secured against those properties
- The lender's maximum gross LTV and minimum-interest rules
- Legal, valuation, and due-diligence requirements
In practice, most lenders focus heavily on the property, security, and exit strategy, so monthly income may matter less in some cases.
A credible exit strategy is one of the most important factors lenders will assess. Read our bridging loan exit strategy guide.
Our specialist bridging loan brokers can review these factors, identify suitable lenders, and provide a personalised estimate based on the details of your case.
Bridging Loan Calculator FAQs
Want to understand the product in more detail? Read our complete guide to bridging loans.
1. How Accurate Is This Bridging Loan Calculator?
It provides an indicative estimate using the values you enter and the assumptions stated on this page. It can help you understand likely interest, fees, redemption balance and LTV, but it is not a lender quote, offer or lending decision. A property valuation and full lender assessment are required before terms can be confirmed.
2. Which Bridging Loan Fees Are Included?
The calculator includes a 2% lender arrangement fee, a £25 telegraphic transfer fee, a £245 lender administration fee, a £495 broker fee, estimated legal fees of £2,000 and a £40 redemption fee. It shows which costs are added to the facility and which are payable separately.
3. Why Are Valuation Fees Not Included?
Valuation fees vary according to the lender, property type, location, value and the form of valuation required. Leaving them out avoids presenting a single figure that may be misleading. Your broker can confirm the likely valuation cost when recommending a lender.
4. What Is the Difference Between Net LTV and Gross LTV?
Net LTV is based on the cash you want to receive plus any mortgage balances remaining on the properties. Gross LTV also reflects lender fees added to the facility and any interest being rolled up. Lenders often use gross LTV to assess their total exposure, so it can affect both eligibility and pricing.
5. What Is Rolled-Up Bridging Loan Interest?
Rolled-up interest is added to the bridging loan instead of being paid each month. This avoids monthly interest payments during the term, but the balance grows and interest may compound. Serviced interest is paid monthly and therefore does not increase the redemption balance in the same way.
6. Do I Pay Interest for the Full Loan Term If I Repay Early?
Bridging interest is normally charged only while the loan is outstanding. This means that if you take out a 12-month bridging loan and repay the loan after four months, you will only pay four months of interest. However, some lenders may impose a minimum-interest period or other early repayment terms.
7. Can I Include More Than One Property in the Calculation?
Yes. Add every property over which the bridging lender will take a legal charge and enter any mortgage balance that will remain secured after the new loan completes. This can include the property you are buying. The calculator combines the property values and retained borrowing when estimating net and gross LTV.
8. Does the Calculator Tell Me the Maximum Amount I Can Borrow?
No. It models the loan amount and security values you enter. The amount a lender is prepared to offer will depend on its LTV limits, valuation, property, exit strategy, affordability, and wider lending criteria.
Bridging loans in the wider market can range from £25,000 to £60 million. The maximum loan available depends on the lender, the value of the property, and the overall security.
9. Are All Bridging Loans Regulated By the FCA?
No. Whether a bridging loan is regulated depends on how the property is or will be occupied and the circumstances of the transaction. A loan secured against a home occupied by you or a close family member is typically regulated, while many investment and commercial bridging loans are not. Read our guide to regulated bridging loans or ask a specialist to confirm which rules apply to your case.
Discuss Your Bridging Loan Options with a Specialist
Our calculator is intended as a useful starting point to compare likely costs and bridging loan rates, but it cannot account for every lender's pricing model, criteria, or valuation approach.
Tell us about your property, required timescale and exit strategy, and a bridging specialist will assess your case and compare suitable options for your estimated market value and security details.
- Receive a personalised quote based on your circumstances
- Compare suitable bridging lenders from the full UK market
- Work with a dedicated broker from initial assessment to completion
Get a Bridging Loan Quote
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Important Information
This calculator provides an indicative illustration only. It is not advice, a credit decision, a lender offer, or a recommendation.
All finance is subject to status, property valuation, legal due diligence, and lender approval. Rates, fees, and lending criteria can change.
Bridging finance is secured against property or, in some cases, more than one property. The property's value and any outstanding mortgage balances affect the total debt secured and the terms available.
If the loan is not repaid by the agreed date, additional interest and charges may apply and the lender may take action to recover the debt, including enforcing its security.
Not all bridging finance is regulated by the Financial Conduct Authority.
