Our online bridging loan calculator is designed to make it quick and simple for you to estimate how much you can anticipate paying as a bridging loan customer.
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How to use a bridging loan calculator
Bridging loan rates and associated bridging loan fees vary significantly from one lender to the next, which is why a full market comparison should be conducted to ensure you get the best possible deal.
Use our exclusive bridging loan calculator for an overview of the costs of bridging finance, or call anytime for an obligation-free consultation and a more accurate quote.
This is how our bridging loan calculator works
Bridging loan calculators work by performing a series of calculations based on the information entered by the user. The main numbers needed to perform a bridging finance calculation include the following:
- How much money do you intend to borrow?
- Your preferred repayment period
- Value of the asset or assets used to secure the loan
- Choice of monthly interest or rolled-up interest
- Approximate monthly interest rate
However, there are additional fees and commissions payable on a bridging loan that are not typically covered by an automated bridging finance calculation. Each of the following will therefore need to be discussed with your broker before applying:
- Property valuation fees
- Administration fees
- Loan arrangement fees
- Early repayment fees
- Exit fees
- Legal fees
Broker fees and commissions should not apply, as they should be directed at the lender, not the applicant.
| Description | Value |
|---|---|
| Net Loan | £100,000.00 |
| Telegraphic Transfer Fee | £30.00 |
| Estimated Legal Fee | £1,500.00 |
| Arrangement Fee | £2,326.03 |
| Admin Fee | £350.00 |
| Average interest per month | £593.12 |
| Monthly Interest Rate | 0.55% |
| Gross Loan | £110,788,22 |
A bridging loan calculator is available to anyone
We highly urge anybody contemplating bridging credit for whatever reason to utilise a bridging loan calculator before applying to verify they can afford to repay the loan easily. Bridging financing has the potential to be a very cost-effective kind of short-term borrowing, but it can become costly if the loan is not fully returned by the agreed-upon date.
A bridging loan calculator should not be considered a 100% accurate or binding indication of actual bridging loan costs. A wide variety of additional factors may influence affordability or otherwise of bridging finance, all of which will be discussed with your broker during your initial consultation.
Bridging loan interest rate calculations
Interest rates vary depending on a number of contributing factors, but they typically range from roughly 0.4% per month to around 1.5% per month.
See below for a summary of the payable monthly interest based on a given rate (example is indicative of a £100k bridge over 12 months):
| Interest Rate | Monthly Interest |
|---|---|
| 0.55% | £550 |
| 0.70% | £700 |
| 0.75% | £750 |
| 0.85% | £850 |
| 0.95% | £950 |
| 1.00% | £1,000 |
| 1.05% | £1,050 |
| 1.10% | £1,100 |
| 1.20% | £1,200 |
| 1.25% | £1,250 |
| 1.40% | £1,400 |
| 1.50% | £1,500 |
Repaying your bridging loan
Most bridging loan specialists are relatively flexible with regard to repayment period length. However, most limit their bridging products to a maximum of 18 to 24 months before full repayment is required.
Call us today for an obligation-free consultation to discuss your requirements and preferences in more detail.
Bridging Loan Eligibility
Bridging loans are designed for a specific group of borrowers seeking financial help with property purchases. Here’s a brief summary of who qualifies:
- Eligible applicants include sole entrepreneurs, commercial ventures, and established corporations.
- Property Focus: Common uses include acquiring or upgrading residential or commercial buildings.
- Age Requirement: Most lenders need a minimum of 18 years old, although some may have a higher limit.
- UK residency: This requires having a registered address in the UK.
- Secured loans require collateral, often property.
- Exit Strategy is Important: A defined repayment strategy, such as selling the secured asset, obtaining long-term financing, or collecting anticipated income, is essential.
- Most lenders need a minimum loan amount of roughly £10,000.
- Employment: Your work position (employed, self-employed, or retired) is less important than the other factors indicated above.
Note: While credit history and income evidence may not be the most important elements, lenders may nonetheless consider them in some instances.
The Cost of a Bridging Loan Explained
Here’s a summary of the costs often involved with a bridge loan.
- Administrative fee: This one-time cost, usually approximately £295, covers the processing and administration of the loan application. It’s worth noting that this is only due if the loan is authorised and drawn.
- Valuation costs: These costs are based on numerous factors, including the value of the property, the location, and the type of report.
- Redemption Charge: This fee covers the legal costs of removing the lender’s security charge on your property after you have repaid the loan.
- Solicitor Fees: The lender will engage a solicitor to handle legal issues such as loan contracts and property security. These legal expenses are the borrower’s obligation.
Transparency from our end: There are no hidden fees! We do not charge broker fees, and our loans do not include any exit costs.
Remember that they are in addition to the loan interest rate. Consider these charges when calculating the overall cost of a bridging loan.
Uk’s Best bridging loan rates from 0.55%
How it works
Get in touch
Clients approach UK Bridging Loans either directly or via introducers. Basic questions by way of a “fact-finding” process are used by UK Bridging Loans to determine if the lending requirements are a possibility.
Fast approval
An immediate yes or no answer is given, and if suitable, a quotation is formulated and forwarded to the client, usually by email.
Formal offer
A formal offer is produced for any client wishing to proceed and forwarded for signature, again, usually by email.
Representative visit
Each client is visited at the security address for the signature of the remaining loan paperwork, including a CH1 land registry charging order. We will also collect any additional pre-requested documentation.
Dedicated underwriting
The signed documentation was immediately sent to our underwriters. Our model is based on very quick completions, as each deal is funded using all of our own money. On rare occasions, we may request additional information.
Payment of funds
Average completion from initial acceptance to pay-out is usually just a few days. We rarely require valuations or additional legal representation. The land registry charge will be removed once the bridging loan is repaid.
Who can use bridging finance?
Age
The applicant could be too old to obtain a standard high-street mortgage, as most mortgage lenders now prevent borrowing beyond what is deemed “normal retirement age”.
Property conditions
The property may be in a condition where it is not suitable for mortgage financing, and as such, a bridging loan could be used to complete the purchase and any required work prior to refinancing.
Credit
The applicant may have had some adverse credit, however minor, which was previously acceptable to lenders but now no longer fits the high street lending criteria.
Income
The applicant may have difficulty proving the income requirements needed for more regular financing. This may be due to poor self-employment records, a break from work, a reduction in self-employed workloads, or overtime.
USP’s
Superfast completion, often within days
Quick auction finance
2nd charge behind the bridging lender
Pure equity-based lending
Loans from £25,500
Land, with or without planning
3rd charge (consent is not always required)
2nd charge behind the equity release lender
Residential and commercial
A free legal option
2nd charge (consent is not always required)
Adverse credit is considered
Up to age 85
Valuations are not always required
No monthly payments
Frequently asked questions
How do you calculate bridging loan amount?
Bridging loan amounts are typically calculated using the following formula:
Bridging loan amount = property value – outstanding mortgage amount.
For example, if your property is worth £100,000 and you have an outstanding mortgage of £50,000, then you could borrow up to £50,000 using a bridging loan.
How much do you need to put down for a bridging loan?
The amount of equity you need to put down for a bridging loan will vary depending on the lender and the property you are borrowing against. However, you will typically need to have at least 20% equity in the property.
What is the formula for calculating bridging amount?
The formula for calculating bridging amount is as follows:
Bridging loan amount = property value – outstanding mortgage amount – fees.
Fees can include arrangement fees, valuation fees, and legal fees.
What is the monthly interest rate on a bridging loan?
Bridging loan interest rates are typically higher than mortgage interest rates. The current average monthly interest rate for a bridging loan is around 4%. However, interest rates can vary depending on the lender, the property, and the borrower’s creditworthiness.
What is the average interest on a bridging loan?
TInterest rates for bridging loans normally range from 0.5% to 2% monthly. Your specific rate will be determined by: The kind of property you’re purchasing and your security.
Is it worth getting a bridging loan?
Bridging loans can be a valuable tool for those who need to bridge the gap between two property transactions. However, they are not without their drawbacks. Here is a summary of the pros and cons of bridging loans:
Pros:
- Can be used to bridge the gap between two property transactions.
- Convenient and quick to obtain.
- Can be used to purchase a property before selling your current one.
Cons:
- High interest rates and fees.
- It can be difficult to repay early.
- It can be risky if the property market falls.
How long does a bridging loan take?
Bridging loans can be arranged quickly, often in as little as a few days. However, the actual processing time may vary depending on the lender and the borrower’s documentation.
How long can you have a bridging loan for?
The maximum term for a bridging loan is typically 12 months. However, some lenders may offer longer terms in exceptional circumstances.
Here are some additional things to consider before taking out a bridging loan:
- Make sure you have a clear exit strategy.
- Only borrow what you can afford. Make sure you can comfortably afford the monthly repayments on the bridging loan, including interest and fees.
- Shop around for the best deal. Compare interest rates, fees, and terms from different lenders before you take out a bridging loan.
- Get professional advice. It is a good idea to speak to a financial advisor to get personalised advice on whether or not a bridging loan is right for you.
Bridging loan uses
Opening Hours
Mon-Thurs: 9am-8.30pm
Fri: 9am-5pm
Sat: 10am-5pm
Sun: 11am-5pm
Open 7 Days a Week
