Bridging Loan Calculator

Content

Bridging Loan Calculator Last updated: 15th August 2025

Why Use Our Free Bridging Loan Calculator?

• Quick and easy, with results in seconds
• Helps you understand your affordability
• Shows your potential borrowing position

How Our Bridging Loan Calculator Works

1. Enter Your Loan Amount

In the Loan Amount box, type the total amount you’d like to borrow.

Enter the figure without commas or symbols (e.g., 250000 for £250,000).

The calculator only operates in GBP.

2. Add the Value of the Property You're Buying or Renovating

In Property Value (to purchase/renovate), enter the market value of the property you’re acquiring or improving.

This helps us understand the security value for your loan.

3. Include the Value of Any Property You Already Own

If you're using another property you already own as part of the loan security, enter its value in Owned Property Value.

Any owned property used as security will increase your borrowing potential.

If you aren’t using an owned property as security, enter 0.

4. Add Any Outstanding Mortgages

In Outstanding Mortgage(s), type the total remaining mortgage balance on all properties being used as security.

If you don't have an existing mortgage, enter 0.

5. Choose Your Loan Term

Use the drop-down menu under Loan Term (months) to select how long you’d like the loan for.

Bridging loans typically have a 12-month term. However 18- or 24-month terms are also available.

6. Review Your LTV (Loan-to-Value) Ratio

As you fill in your details, the calculator will update and display your Loan-to-Value ratio (LTV). You typically need an LTV of 75% or lower to be accepted for a bridging loan.

Lenders use this ratio to assess risk, so keeping it as low as possible helps you secure better rates.

7. Calculate Your Results

Hit the Calculate Now button.

In seconds, you'll see:

• Your LTV
• An overview of your borrowing scenario
• A breakdown of estimated monthly interest repayments
• A breakdown of estimated additional fees
• Next steps to discuss your scenario with an expert broker

8. Review Your Results and Options

Your results will appear instantly below the calculator.

You can adjust any numbers to see how different values affect your LTV and potential loan outcome.

Understanding Your Bridging Loan Calculator Results

• Lender Facility Fee: This is the fee charged by your lender, typically a percentage of your loan.
• Gross Bridging Loan: This is your total loan amount including lender fees.
• Interest rate: The monthly interest rate for your loan
• Monthly Interest: This is the amount of interest you’ll pay each month – note, with a bridging loan, if you repay it early then you’ll stop paying interest on the same day.
• Total Interest: This is the total interest over the full term of the loan should you have it for that long.
• Gross Loan + Rolled up Interest: This is your gross loan amount plus all the potential  accumulated interest.
• Loan-to-Value (LTV): This is the ratio of your total loan amount to your total property value.

Other Costs

• Valuation Fees: Fees for property valuation.
• Exit Fee: A fee that’s occasionally charged when the loan is paid off.
  The fields above make certain assumptions based on general bridging loan rates, costs and fees to give you an initial idea. 

What is a Bridging Loan Calculator?

A bridging loan calculator gives you an idea of how much a bridging loan could cost based on the specific loan you need.

It will give you a free quote and indicative figures for you: interest rates, lender fees, valuation fees, broker fees and admin fees.

When you apply for a bridging loan with a lender (either through a broker or directly), the fees and figures may vary - as our calculator tool is just an estimate based on the basic inputted information and assumes certain factors as standard.

But it's a great tool to give you an idea of how much your project will cost, whether you're simply buying a new home before selling yours or you're looking to fund refurbishments or a development project. 

What is a bridging loan?

A bridging loan is a type of short term property finance.

They're similar to standard mortgages but are designed for the short term - usually between 12 and 18 months.

They're not designed to be long term finance solutions for buying property.

Instead, they're usually used to bridge a gap between two property transactions. Whether it's buying a property before selling your current home, or buying a property, carrying out some renovations, and then refinancing with a standard mortgage, the many uses of bridging loans are endless.

They can provide flexibility and value in the most complex or straightforward situations. And they're also very fast compared to standard mortgages.

Check out our bridging loan case studies for some real-life examples of how they work.

How Bridging Loan Costs Are Calculated

Loan to value

This is the ratio of total borrowing to total property value. Generally, the lower your LTV, the lower the rate of interest you'll pay on your loan. If more than one property is involved, securing your bridging loan on two properties can allow you to reduce your loan to value as well as the overall cost of your loan.

Property location

This is particularly relevant for properties in more remote areas of the UK, such as north Scotland and Northern Ireland, when it comes to residential property purchases. The more remote the property, the more risk there is to a lender that you may not be able to provide an exit for your bridging finance, so it can be reflected in the interest rate you pay.

Regulated or unregulated

If the property is for personal use, it will fall under regulated lending governed by the FCA (Financial Conduct Authority). There are fewer regulated lenders in the market, so in certain situations, your options may be more limited. Regulated lending is highly competitive, so the good news for borrowers is that for loan to values below 60% the rates currently are as low as they've ever been.

Lender fees

Bridging loan lenders will typically charge a facility arrangement fee of 2% based on either the net or gross loan. For most of the lenders we use, the lender fee will be based on the net loan. Lenders may also charge a loan drawdown fee - typically £295. This fee can vary depending on the number of properties involved. When your loan is redeemed, there will also be a redemption fee. This is the cost of removing a legal charge from your property (ies) and will typically be £120.

Legal costs

A bridging loan transaction, like a mortgage, requires solicitors to complete the legal charge paperwork. The lender will have their own solicitor who will have their fees, and you'll also need to have a solicitor to represent you. Legal fees can vary and will depend on the complexity of your transaction. Some bridging lenders provide dual representation, which can reduce the overall cost.

Survey fees

As with any secured lending on an asset, your lender will generally want an independent valuation. Most UK bridging loan lenders will appoint a surveyor from an agreed panel. The cost will depend on the lender, but most work to a scale based on property value. Some lenders we work with provide what's called a desktop valuation (typically for properties valued under £1 million), which is both quicker and cheaper - we always try to negotiate these on behalf of our clients.

Broker fees

At Clifton Private Finance, we charge a broker fee (typically £495) for arranging finance on your behalf.

Loan exit fees

The lenders we use rarely apply an exit fee. If they are charged, it will be payable on the redemption of your loan and can be anything from 1% to 2%. Our calculator has this field set at 0% as this fee typically only applies to higher risk lending on investment land/property transactions.

How is Bridging Loan Interest Calculated?

The key difference between bridging loan interest compared to standard mortgage interest is that interest rates are displayed monthly for bridging finance.

This is because bridging loans are typically between 12 and 18 month terms, and you pay interest on your monthly balance.

The good news is that you usually only pay interest for the duration of your loan. So, if you exit your bridging loan within 6 months, you'll only pay 6 months' worth of interest even if your original term was 12 months.

We also work with lenders that provide the option of rolling up the interest on your loan, so there's no requirement to repay your interest monthly.

This can be very attractive for cash flow. If you're carrying out renovations on the property, for example, you'll need money on hand to support your project, so you don't want to worry about interest repayments. In this situation, you can add the interest to your loan balance every month and only repay it at the end as a lump sum.

When you pay off your short term loan, your redemption repayment will comprise of the original capital and the accrued monthly interest.

What are the criteria for a bridging loan? 

The criteria for a bridging loan will depend on whether the loan you require is regulated or non regulated.

Non regulated bridging loan criteria

Regulated bridging loan criteria

How to reduce the cost of bridge finance

If you're buying a property before selling an existing one, it may be possible to reduce the cost of finance by using more than one security property. By securing your bridge loan over both properties in the transaction, your overall loan cost may be lower.

If you have an outstanding mortgage on a property you're using as security, it will be factored into the overall loan-to-value calculation.

Why use Clifton Private Finance?

We're an independent company registered in England, and the Financial Conduct Authority regulates us. We have access to the best loan rates in the market for both authorised and regulated lenders, as well as private lenders, for unregulated transactions where speed is often of the essence.

We know the short-term finance market very well and can find the right finance for your situation. If you need longer-term finance to replace bridging finance once your term ends, we can also arrange that for you.

Our free bridging loan calculator is a useful tool for getting an indicative quote, but we recommend talking to us about what you're trying to achieve to get a bespoke quote for your requirements. We provide holistic, regulated bridging loan advice that looks at your entire financial situation for the best solution.