Bridging Loan Cost Calculator
Work out the true cost of your bridge before you apply. Model monthly interest, rolled vs retained vs serviced, fees and total cost - then get live pricing across our 130+ lender panel.
Model your bridging loan cost
Bridging interest is charged monthly, not annually, and the way it is structured - rolled, retained or serviced - changes the cash you need on day one and the total you repay.
Illustrative only. Retained interest is grossed up so the full term's interest is deducted from the advance. Actual costs depend on lender, LTV, property type and credit profile - we will confirm live pricing within hours.
Rolled interest
Interest accrues on the growing loan balance and is repaid in full at redemption. No monthly payments. Total cost is slightly higher than a simple multiplication because interest compounds.
Retained interest
All interest for the full term is deducted from the advance on day one. You receive less cash but make no monthly payments. The lender grosses up the loan to cover the retention.
Serviced interest
You pay interest monthly from your own funds and the balance does not grow. Cheapest in total terms, but requires monthly cash outflows.
Get a live quote across 130+ lenders
The calculator gives a reliable estimate. For actual lender pricing, send us your scenario - we reply the same working day with indicative terms and a lender shortlist. No upfront fees on loans over £1m.
Total rolled interest at 0.75% pm
Total rolled interest (no fees) by loan size and term. Actual costs depend on lender, LTV, property type and credit profile.
| Loan amount | 3 months | 6 months | 9 months | 12 months |
|---|---|---|---|---|
| £150,000 | £3,390 | £6,880 | £10,470 | £14,170 |
| £300,000 | £6,780 | £13,760 | £20,940 | £28,340 |
| £500,000 | £11,300 | £22,930 | £34,900 | £47,230 |
| £1,000,000 | £22,600 | £45,870 | £69,810 | £94,470 |
| £2,000,000 | £45,200 | £91,730 | £139,620 | £188,940 |
| £5,000,000 | £113,000 | £229,330 | £349,040 | £472,340 |
Key factors that affect your pricing
LTV
The single biggest driver. Every 5% reduction in LTV typically saves 0.05-0.15% pm. A £500k loan at 60% LTV costs materially less than the same loan at 75% LTV.
Property type
Residential is cheapest. Commercial adds 0.10-0.25% pm. Specialist assets (care homes, hotels, leisure) can add 0.20-0.40% pm.
Credit profile
Adverse credit, CCJs or recent defaults push rates up. Rates from 0.49% pm assume a clean profile. Most specialist lenders still lend with adverse credit but price accordingly.
Exit strategy
A confirmed, credible exit (sale agreed, mortgage in principle) achieves the sharpest pricing. Open exits increase lender risk and rate.
Speed
5-10 day completions often require lenders who price for speed. Allowing 15-20 working days typically unlocks the full lender panel and sharpest rates.
Loan size
Loans above £1m often achieve lower rates due to lender competition. Our panel includes private banks and family office lenders who target large loans at sub-market rates.
Frequently asked questions
Is 0.49% pm the rate I will get?
0.49% pm is the lowest rate on our current lender panel for residential property at 50% LTV or below with clean credit. Most borrowers will pay 0.65-0.85% pm depending on LTV, property type, and credit profile. Our brokers will tell you your likely rate range before you commit to anything.
Does the arrangement fee come out of the loan?
Usually, yes. Most lenders deduct the arrangement fee from the advance, meaning you receive the loan amount less the fee. Some lenders allow the fee to be added to the loan. Either way, you should budget for it when calculating the cash you need at completion.
Which interest type is cheapest?
Serviced interest is cheapest in total cost terms because interest does not compound on itself. However, it requires monthly cash outflows. Rolled interest costs slightly more overall but requires no monthly payments - the full cost is settled at redemption. Retained interest is deducted upfront, so you receive less cash on day one but make no payments during the term.
Can I repay early without penalty?
Most specialist lenders on our panel offer no early repayment charges (ERC) after the minimum term (usually 1-3 months). We always check ERC terms before placing a loan, particularly for chains and downsizing scenarios where exit can happen faster than expected.
Does the calculator include SDLT?
No. Stamp Duty Land Tax is separate and is not a bridging loan cost. If you are purchasing a property and need to fund the SDLT as part of the transaction, some lenders will include it in the facility. Ask our brokers if this is relevant to your case.