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Use this free bridging loan calculator to get a detailed estimate of interest, charges and other costs of your bridging finance.
A bridging loan calculator gives you an idea of how much a bridging loan could cost, based on your circumstances such as how much you want to borrow, your property’s value and how long you want the loan for. This bridging loan calculator will also give indicative figures of any fees involved, although when you apply for a bridging loan, these fees may vary.
Bridging loans are a way to borrow money in the short term and they can be used to ‘bridge the gap’ if you need to buy one property before selling another.
Bridging loans can be very fast to arrange compared to traditional mortgages. However, they are secured loans, which means you have to secure an asset against them, usually a property or properties. So think carefully before proceeding.
We’ve partnered with Fluent Money because of their excellent customer service. With an excellent 4.9 out of 5 Trustpilot rating, the FCA-regulated company has an experienced team of experts to help guide you through the process whatever your needs. Obtaining a quote from Fluent Money is completely free and without obligation. Get your free, no-obligation bridging loan quote and instant decision now.
Bridging loans can be arranged for any legal purpose. Some common examples are:
So what bridging loan criteria will you need to meet to be approved? Firstly, you’ll need to be:
And you’ll usually need to put up property as security. Examples of the types of security that can be used for a bridging loan include:
Use this bridging loan calculator to estimate how much you may be able to borrow. The amount of loan you’ll be able to get will depend on the value of your property and your personal finances. The maximum loan, including any retained or rolled up interest is normally limited to 75% loan to value (LTV), although the amount available will depend on the lender and security being used. Multiple properties can sometimes be used as security.
Your loan size may be limited depending on the condition of the property, your credit history, any essential works required at the property or the level of finance available to refinance.
The cost of a bridging loan will depend on the interest rate, fees and how long you have the loan. You’ll need to factor in both the interest charged and any arrangement, valuation, legal, administration or broker fees.
Use the bridging loan calculator above to estimate your total borrowing costs based on your circumstances.
Bridging loan interest rates tend to be higher because bridging loans are a higher risk than a traditional mortgage and they’re designed to be short term. You can expect to pay anything from 0.52% per month, depending on your circumstances.
If you’re looking for a bridging loan, you should always shop around and the easiest way to do this is by using a specialist bridging loan broker like Fluent Money.
Another potential benefit of using a bridging loan broker is that unlike standard mortgages, bridging loans interest rates can be negotiated – so by using a good bridging loan broker, you may get a better rate.
The bridging loan interest rate you’ll be able to access will depend on factors including your LTV, how you plan to repay the loan and the condition of the property.
Generally, a lower loan-to-value (LTV) can help you access more competitive rates, because the lender is taking on less risk. Rates vary between lenders and can change, so check the current options available before applying.
| Up to 55% | from 0.52% per month |
| Up to 65% | from 0.61% per month |
| Up to 70% | from 0.67% per month |
| Up to 75% | from 0.75% per month |
These are illustrative rates only. The rate available to you will depend on the lender and your circumstances.
The key difference between bridging loan interest compared to standard mortgage interest is that bridging loan rates are commonly quoted as a monthly percentage because these loans are designed for short-term borrowing.
And you’ll usually only pay interest for the duration of your loan. For example, if you repay the loan after six months, the interest charged may reflect the period you actually borrowed the money for. However, some lenders may have a minimum interest period or charge fees for early repayment, so check the terms carefully.
Unlike a traditional mortgage, there are three ways that the interest on a bridging loan is charged:
The exact fees you’ll need to pay will depend on the lender and your circumstances but here is what you’ll typically have to pay.
Here is an example of how a bridging loan works. Let’s say you want to buy a house for £400,000 before you can sell your current property worth £350,000 with a £50,000 mortgage secured against it. This means borrowing the full £400,000 with a 12-month bridging loan to give you enough time to sell. You may also need to arrange a mortgage on your new property to cover any remaining shortfall.
| Monthly Interest Rate: | 0.75% |
| Loan Term (Months): | 12 |
| Net Loan Amount: | £400,000.00 |
| Interest (if runs full term): | £38,273 |
| Arrangement fee (2%): | £8,000 (Added to loan) |
| Gross Loan Amount: | £446,273 |
| Amount | |
|---|---|
| Valuation Fee (Inc. VAT): | £304 |
| Telegraphic Transfer Fee: | £35 |
| Lenders Admin Fee: | £145 |
| Estimated lender legal costs: | £900 |
| Redemption Admin Fee: | £40 |
| Grand total: | £447,698 |
Using a specialist bridging loan broker can help you compare lenders and may give you access to broker-exclusive rates or terms.
Also, 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. However, 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.
Get a free, no-obligation bridging loan quote or if you want to speak to a specialist broker immediately call Fluent Money now on 01204 899 584. They are open Monday – Thursday 09:00 – 19:00 and Friday 09:00 – 17:30.
Fluent Money does not charge an initial advice fee, so you can discuss your options and get an indicative quote without paying an upfront advice fee.
Yes. Bridging loans can be secured as first or second charges, or even third charges, as long as there is still sufficient equity in the property.
This will always depend on your individual circumstances but generally speaking, as long as the LTV is 75% or below, based on the combined value of properties being used as security, then 100% bridging is possible.
You can get a bridging loan quote or speak to a specialist broker at Fluent Money on 01204 899 584.
Or you can use the free online bridging loan calculator for detailed examples of all the costs associated with taking out a bridging loan instantly.
Yes. A specialist bridging loan broker can compare lenders and explain the rates, fees and terms available. Plus, they may also have access to broker-exclusive rates.
This will depend on the lender and your circumstances. Lenders will usually consider the property being used as security, the amount of equity available, the loan-to-value (LTV) and your exit strategy. They may also consider your credit history and financial circumstances. Use this bridging loan calculator to estimate how much you may be able to borrow.
Some bridging loans can be arranged in a matter of days, while more complex transactions can take six to eight weeks. The exact timescale will depend on the lender and your circumstances.
You may be able to repay a bridging loan early, but the terms vary between lenders. Check whether any minimum interest period, early repayment charge or other fee applies.
A secured loan is borrowing secured against an asset, usually a property. If you fail to repay the loan, the lender may ultimately be able to take action against the property.
When you’re looking into bridging loans you’ll see the terms gross and net loans. The gross loan is the total amount borrowed including all the fees, charges and interest. The net loan is the amount of money released to you, not including any fees, charges or interest.
Closed bridging loans have a guaranteed exit date, or date when the loan will be repaid; for example if you’re buying a property this would be the completion date after you’ve exchanged contracts.
Because the repayment date is known in advance, closed bridging loans may sometimes be offered on different terms from open bridging loans.
An open bridging loan doesn’t have a guaranteed exit date; a borrower can only indicate to the lender how long the loan will be required. You’ll still need a clear exit strategy and lenders will usually set a maximum term.
A bridging loan exit strategy is your plan for repaying the loan. For example, your exit strategy could be selling a property or arranging longer-term finance such as a mortgage.
If you think you won’t be able to repay your bridging loan on time, contact your lender as soon as possible. They may be able to discuss your options, but an extension isn’t guaranteed and you could face additional interest or fees.
Because bridging loans are secured against property, failing to repay could ultimately put your property at risk. You can also get free debt advice from Citizens Advice.
Terms typically last up to 12 months, with a minimum loan term of 30 days, although longer terms may be available depending on the lender and type of loan. Find out more about how Bridging Loans work and get specialist no-obligation advice.
Providing the bridging loan you choose doesn’t require monthly repayments, your borrowing history won’t be assessed in the same way as if you take out a mortgage or a secured loan. So as long as your property is suitable security for the loan and you have a exit strategy, you may be able to get a bridging loan even if you have a bad credit score.
Yes. Getting a mortgage on an auction property is possible but if there’s a delay getting your mortgage, you can use a bridging loan to purchase a property at auction. One benefit is that bridging loans can be arranged quickly. You can also use bridging loans to buy unmortgageable properties.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice. HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of Fluent Money Limited, which is authorised and regulated by the Financial Conduct Authority. Calls may be monitored/recorded.
