Bridging Loan Cost Calculator
Work out what a bridging loan really costs: monthly interest, arrangement and exit fees, legal costs, and the equivalent annual rate.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Bridging finance is quoted as a monthly rate, which makes it look far cheaper than it is. Under one percent a month sounds modest and is over twelve percent a year before any fee, and the fees on a short facility frequently add several percent more.
It can still be the right product — for a purchase that cannot wait, a property no mainstream lender will touch, or a chain that would otherwise collapse. The point is to price it honestly against what it makes possible.
The calculation
Interest = amount × monthly rate × months. Fees are the arrangement and exit percentages on the amount, plus legal and valuation costs. The equivalent annual cost annualises the total so it can be compared with an ordinary mortgage rate.
Worked example
Borrowing 200,000 at 0.85% a month for nine months costs 15,300 in interest. A 2% arrangement fee is 4,000, a 1% exit fee 2,000, and legal and valuation 2,500 — total fees of 8,500. The whole facility costs 23,800, which annualises to about 15.9%, well above the monthly rate suggests.
The exit is the risk, not the rate
Bridging is priced on the assumption that it is repaid on time from a defined source — a sale, a refinance, a completion. If that exit slips, extension fees and default rates apply and the cost escalates quickly. Never take bridging without a specific, evidenced exit.
Turn a calculation into an enquiry
Buyers who run these numbers are ready to talk. Give every listing its own page with your photo, phone and WhatsApp on it — leads land straight on your phone.
Create your free property pageFrequently asked questions
When does bridging finance make sense?
When speed or an unmortgageable property makes normal lending impossible, and there is a defined exit within the term — a sale nearing completion, a refinance already agreed, or a build with funding in place.
Is interest paid monthly or rolled up?
Both are offered. Rolled-up interest is added to the balance and settled at redemption, which helps cash flow but compounds and raises the total. Retained interest is deducted from the advance, so you receive less than you borrow.
What happens if I cannot repay on time?
Extension fees, a higher default rate, and ultimately enforcement against the security. This is the main risk of the product and the reason an evidenced exit matters more than the headline rate.