Bridging Loan Calculator — Calculate Monthly Interest and Costs
Calculate costs of a UK bridging loan for property transactions. See monthly interest total fees and compare with standard mortgage costs.
Bridging loans are short-term secured loans used to bridge the gap between buying a new property and selling an existing one. Typical terms are 1-18 months with monthly interest rates of 0.4-1.5% (equivalent to 5-18% annually). They are expensive compared to standard mortgages but provide fast access to funds often completing within 7-14 days versus 6-8 weeks for traditional mortgages.
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Key Information
| Parameter | Details |
|---|---|
| Monthly Interest Rate | 0.4% - 1.5% |
| Arrangement Fee | 1% - 2% of loan amount |
| Exit Fee | 0% - 1% of loan amount |
| Typical LTV | Up to 75% |
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Use Calculator NowFrequently Asked Questions
How much does a bridging loan cost?
On a £300000 bridging loan at 0.75% monthly interest for 6 months: monthly interest = £2250. Total interest = £13500. Arrangement fee (2%) = £6000. Exit fee (1%) = £3000. Valuation and legal fees = £2000-£3000. Total cost approximately £24500-£25500. This makes bridging loans significantly more expensive than standard mortgages but speed and flexibility justify the cost for time-sensitive transactions.
When should I use a bridging loan?
Common scenarios: buying a new home before your current one sells (chain-breaking) purchasing at auction (28-day completion required) buying property needing renovation before a mortgage is possible and funding commercial property transactions. Do not use bridging loans for long-term borrowing — they are designed for 1-12 month periods. Always have a clear exit strategy before taking one.
Can I get a bridging loan with bad credit?
Yes some specialist lenders offer bridging loans with adverse credit because the loan is secured against property. However expect higher interest rates (1-1.5% monthly versus 0.4-0.7% for good credit) and lower LTV (60% versus 75%). The key factor is the exit strategy and property security rather than credit score alone. Use a specialist broker to find suitable lenders.
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Last updated: March 2026