Bridging Loan Calculator UK – Estimate Your Short-Term Finance Costs
Our Bridging Loan Calculator UK helps you estimate the total cost of a short-term property bridging loan, including monthly interest, arrangement fees, and total repayment. It's ideal for homeowners, property investors, and developers who need quick access to funds before selling an existing property or completing a purchase.
Bridging loans are a common financial tool in the UK property market, often used for auction purchases, renovation projects, or temporary cash flow gaps. With this calculator, you can get a quick estimate of your monthly interest and total repayment amount based on your chosen loan size, interest rate, and term length.
How the Bridging Loan Calculator Works
The calculator uses a few simple inputs to give you a clear estimate:
- • Loan amount (£): The amount you plan to borrow (e.g. £100,000 to £2,000,000)
- • Monthly interest rate: Usually between 0.55% and 1.25%, depending on the lender and your credit profile
- • Loan term: The period you need the funds, typically 3 to 12 months
- • Arrangement fee: Often around 1% to 2% of the total loan
- • Exit fee: Some lenders charge up to 1% when the loan is repaid
Example Calculation
If you borrow £250,000 at 0.75% monthly interest for 12 months, with a 2% arrangement fee:
- • Total interest = £22,500
- • Arrangement fee = £5,000
- • Total repayable = £277,500
Typical UK Bridging Loan Rates and Fees
| Type | Typical Range | Notes |
|---|---|---|
| Monthly Interest Rate | 0.55% – 1.25% | Varies by lender and risk level |
| Arrangement Fee | 1% – 2% | Charged upfront |
| Exit Fee | 0% – 1% | Sometimes waived |
| Loan Term | 3 – 18 months | Commonly 6–12 months |
| Loan Size | £50,000 – £10,000,000 | Property-backed only |
Why Use a Bridging Loan Calculator
- ✓Compare potential lenders and loan scenarios easily
- ✓Plan your exit strategy with realistic repayment figures
- ✓Understand total borrowing costs before applying
- ✓Make informed financial decisions
FAQ: Bridging Loan Calculator UK
Q: What's the difference between simple and compound interest?
A: Simple interest is calculated only on the principal amount, while compound interest includes interest on previously earned interest. Most bridging loans use simple interest.
Q: Are arrangement fees always charged upfront?
A: Yes, arrangement fees are typically deducted from the loan amount when it's advanced, reducing the net amount you receive.
Q: Can I get a bridging loan without an exit strategy?
A: No, lenders require a clear exit strategy, such as selling a property or refinancing, before approving a bridging loan.
Conclusion
A Bridging Loan Calculator UK is an essential tool for anyone considering short-term property finance. Whether you're comparing rates or planning your exit strategy, using a calculator allows you to understand your financial position clearly before taking the next step.
Always ensure that you have a clear repayment plan or exit strategy in place, and consult a regulated UK financial adviser before committing to a bridging loan.