Bridging loan calculator

At a typical rate of 0.75% a month, a £250,000 bridging loan costs £1,875 a month in interest. Across the market that ranges from about £1,375 a month at 0.55% to £3,125 at 1.25%.

Bridging rates are quoted monthly rather than annually. In 2026 first-charge rates typically run from around 0.45% to 1.25% a month, with most investor deals between 0.65% and 0.95%. Loan-to-value, the property type, your experience and the strength of your exit are the main factors that decide where you land.

Beyond interest, expect an arrangement fee of 1–2% of the loan, sometimes an exit fee of up to 1%, a valuation fee (usually £500–£2,000) and legal fees for both your solicitor and the lender’s (often £1,500–£3,000 a side). Always compare quotes on total cost over your term, not the monthly rate alone.

Rolled-up interest accrues monthly, compounds, and is repaid at the end. Retained interest is calculated for the whole term and deducted from the loan on day one, so you receive less but owe only the loan and exit fee at the end. Rolled-up gives a higher net advance; retained gives slightly lower total interest.

Total cost = (loan × monthly rate × months) + arrangement fee + exit fee + valuation + legal fees. For rolled-up interest the interest element compounds monthly, so it is a little higher than the simple calculation. Our calculator runs both versions and shows the net advance you would actually receive.

Usually yes. Most lenders charge interest only for the months you use and refund unused retained interest, although some apply a minimum term of one to three months or a small redemption fee. Repaying early is the single easiest way to cut the cost of a bridge, so check the terms before you commit.

It is accurate for the inputs you give it, but the inputs are the uncertainty. Your actual rate, fees and term depend on the property, LTV and exit, and lenders’ pricing changes. Treat the output as a planning figure and get a full cost illustration from a broker before making an offer on a property.

Most bridging loans run from 1 to 12 months, with some lenders offering up to 18 or 24 months. Because you pay interest by the month, the shortest realistic term that gives your exit room to complete is the cheapest. Running past the agreed term triggers default interest, so build in a buffer.