Bridging Loan Calculator
Work out the total cost of a bridging loan over the months you need it, and how much more it costs than a standard mortgage.
The bridging loan
Interest is rolled up: added to the loan each month and repaid at the end, with the loan.
Fees and costs
Filled in from a typical quote. Valuation and legal fees are estimates.
The arrangement fee and lender fees are usually added to the loan, so interest is charged on them too. Other fees might be a packager or processing fee.
Compare with a mortgage
The same amount on a standard mortgage, over the same months.
Change these to a rate and fee you’d actually be offered.
Where the cost comes from
Compared with a mortgage
Would you still buy at this price if it cost you £6,028 more? If not, offer less, or build the cost into your numbers. If you would, a bridge can be worth it.
Your exit
Each extra month adds about £986. A bridge has an end date. Before you start, have a sale or a refinance lined up to repay it, ideally both.
Month by month: what you’d repay
| Month 1 | £154,159.65 |
| Month 2 | £155,115.20 |
| Month 3 | £156,076.66 |
| Month 4 | £157,044.09 |
| Month 5 | £158,017.51 |
| Month 6 | £158,996.98 |
| Month 7 | £159,982.51 |
| Month 8 | £160,974.15 |
| Month 9 | £161,971.94 |
| Month 10 | £162,975.92 |
| Month 11 | £163,986.12 |
| Month 12 | £165,002.59 |
An illustration, not a quote. Interest is shown rolled up and charged monthly on the loan and the fees added to it. The mortgage figure is interest for the same months plus the product fee. Your own solicitor’s fees for the purchase apply either way.
This is a guide, not a quote. Bridging rates and fees depend on the lender, the property, how much you borrow against it and how you’ll repay. A bridge isn’t always the answer: we’ll look at the other options with you first.
Want a real figure, not an estimate?
Calculators give you a rough idea. Leave your name and number and a CeMAP-qualified advisor will call to talk you through your numbers and what lenders would actually offer.
Darren, Beth, Ben & JakeYour advisors, at our office in Poole
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How the cost of a bridging loan adds up
Bridging loans are priced by the month rather than the year, and the fees matter as much as the rate. This calculator adds everything up over the months you expect to need the loan, so you can see the total cost rather than just the rate.
Interest
The calculator shows interest rolled up: added to the loan each month and repaid at the end. Because it builds on itself, every extra month costs a little more than the last. Some lenders retain the interest instead, taking it from the loan at the start, or let you service it by paying monthly.
Fees
Most bridges carry an arrangement fee, often around 2%, and lender admin fees, usually added to the loan so interest is charged on them too. You’ll also pay for a valuation and legal work, and some lenders charge an exit fee when you repay.
Why compare it with a mortgage?
A bridge can do things a mortgage can’t: buy before you’ve sold, buy quickly, or buy a property no mortgage lender will lend on yet. The comparison shows what that costs you. If a bridge is the only way to buy a property, ask whether you’d still pay the price plus that extra cost. If not, offer less, or build it into your numbers.
The exit
The biggest risk with any bridge is repaying it on time. You need a sale or a refinance lined up, ideally both. Go past the end date and costs climb quickly. More on bridging loans, and whether you need one.
What these figures don’t include
The results are illustrations, not a quote. Rates and fees depend on the lender, the property, how much you borrow against it and how you’ll repay. Your own solicitor’s fees for the purchase apply either way. For figures based on your own situation, call us on 01202 733 809.
Next step: Bridging loans, and whether you need one