Bridging Loan Calculator

Bridging finance is a short-term solution designed to help you move quickly, whether you’re purchasing a new property, managing a chain, or unlocking capital.

How a Bridging Loan Works

Bridging finance is a short-term funding solution, designed to help you move quickly, whether you're purchasing a new property, raising capital, or managing the timing between transactions. It can be arranged swiftly, often within a matter of days, and repaid once longer-term finance or asset disposal is in place.

Interest Types: Rolled Up, Retained, or Serviced

This calculator assumes the interest is retained. That means interest is deducted from the loan in advance, with no monthly payments required. Everything is settled when the loan is repaid.

There are three common ways interest can be structured:

Retained – interest is deducted upfront and repaid at the end
Rolled up – interest accrues during the loan term and is added to the balance
Serviced – monthly interest payments are made throughout

With both retained and rolled-up interest, there are no monthly outgoings — which can be useful where cash flow is tight, or speed is essential.

Regulated vs Unregulated Bridging

Regulated bridging loans (secured against your main residence) typically run for a maximum of 12 months.

Unregulated loans (for investment or business purposes) can run longer - 18 or 24 months in many cases, subject to the loan-to-value and proposed exit.

When Might Bridging Be Appropriate?

Bridging can be useful in a range of scenarios, including:

Buying a new home before your existing property is sold
Purchasing at auction
Renovation or conversion projects
Raising capital against one or more properties
Managing time-sensitive or complex transactions

A Note on Fees and Structure

Most bridging loans carry an arrangement fee, usually between 1% and 2%. Interest is generally charged daily, you only pay for the time you have the loan. To maximise the amount available, lenders may take multiple properties as security, on a first or second charge basis.

A Word of Caution

Bridging loans are specialist tools, they can be extremely effective when used in the right way, but they’re not suitable for every situation.

They're secured against property and must be repaid in full, usually via sale or refinance. Before proceeding, it’s important to have a clear and realistic exit strategy in place.

Disclaimer

This calculator is intended as a guide only and does not constitute advice.

For tailored recommendations, please speak to us directly.

Interest-Only Portion

Total amount you plan to borrow.

Net Loan Amount (£)