Bridging Loan Calculator
Calculate the total cost of a bridging loan including interest and fees. Adjust the parameters below to see how different terms affect your costs.
Loan Details
Monthly Interest
£3,250
Total Repayable
£549,000
Loan Breakdown
Monthly Interest Schedule
This calculator provides indicative figures only and should not be relied upon as a formal offer. Actual rates and fees will vary depending on your circumstances, the property, and lender criteria. Bridging loans are secured against property. Contact us for a personalised quotation.
Understanding Bridging Loan Costs
Bridging loans are short-term finance solutions designed to "bridge" a gap in funding. They are commonly used for property acquisitions in Fulham where speed is essential, such as auction purchases, chain breaks, or securing a property before selling an existing one.
How Bridging Loan Interest Works
Bridging loan interest is typically quoted as a monthly rate rather than an annual rate. For example, a rate of 0.65% per month equates to approximately 7.8% per annum. Interest can be structured in three ways: retained (deducted from the loan at the outset), rolled up (added to the loan balance monthly), or serviced (paid monthly by the borrower).
Most bridging loans for property investment and development in Fulham use retained or rolled-up interest. This means no monthly payments are required during the term, but the total amount repayable at the end of the term will be higher.
Typical Bridging Loan Fees
In addition to interest, bridging loans typically carry an arrangement fee of 1-2% of the loan amount. Some lenders also charge a valuation fee, legal fees, and an exit fee of 0-1%. Our calculator includes the arrangement fee in the total cost to give you a more accurate picture of the overall expense.
When to Use a Bridging Loan
Bridging loans are ideal when you need to move quickly on a Fulham property purchase, when you are between property transactions, or when you need short-term finance while arranging longer-term funding. They can also be used for light refurbishment projects where the works will be completed within the bridging term.