Bridging Loan Calculator UK

Calculate the total cost of a bridging loan including monthly interest, arrangement fees and all charges.

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Bridging Loan Cost Calculator

Total Repayment

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Loan + All Interest & Fees
Monthly Interest -
Total Interest -
Arrangement Fee -
Valuation + Legal -
Total Fees & Interest -
Effective Monthly Rate -
MB
Mustafa Bilgic Property Finance Specialist — Updated April 2026
Bridging FinanceProperty2026

Bridging Loan Rate Comparison — 2026

Loan AmountLTVMonthly Rate6-Month Interest12-Month Interest
£100,00050%0.45%£2,700£5,400
£200,00060%0.65%£7,800£15,600
£300,00070%0.75%£13,500£27,000
£500,00070%0.85%£25,500£51,000
£1,000,00065%0.55%£33,000£66,000

Rates are indicative and vary by lender, property type and borrower profile. Lower LTV ratios and clear exit strategies typically attract better rates.

Common Bridging Loan Uses

Chain Break
Buy before selling
Auction Purchase
28-day deadline
Refurbishment
Renovate & sell/refi

How Bridging Loans Work

1

Identify your need and exit strategy

The exit strategy (how you repay) is the most important factor. Common exits include property sale, mortgage refinance, or development finance.

2

Get a valuation

The lender will value the security property to determine the maximum LTV. Most lenders cap at 70–80% LTV for residential property.

3

Agree terms and complete

Once approved, completion can happen in 5–14 working days. Interest is usually retained (deducted from the loan upfront) or rolled up (added to the balance monthly).

4

Execute your exit

Repay the loan plus interest and fees through your planned exit strategy. If you repay early, you may save on interest charges.

Frequently Asked Questions

How much does a bridging loan cost per month in 2026?
Bridging loan interest rates in 2026 typically range from 0.4% to 1.5% per month (4.8% to 18% annual equivalent). On a £200,000 loan at 0.75% per month, the monthly interest cost would be £1,500. Most bridging loans also carry an arrangement fee of 1–2% of the loan amount.
What is the maximum LTV for a bridging loan?
Most bridging lenders offer a maximum LTV of 70–80% on residential property. Some specialist lenders may go to 80% for strong cases. Lower LTVs (under 60%) typically attract better interest rates. Commercial properties and land usually have lower maximum LTVs of 60–65%.
What is the difference between open and closed bridging loans?
A closed bridging loan has a fixed repayment date, usually because you have exchanged contracts on a sale. An open bridge has no fixed end date but typically runs for up to 12 months. Closed bridges are cheaper because the lender has more certainty about repayment.
What fees are charged on a bridging loan?
Typical fees include: arrangement fee (1–2% of loan), valuation fee (£300–£600), legal fees (£800–£1,500 for both sides), broker fee (0.5–1% if applicable), admin/drawdown fee (£250–£500), and potentially an exit fee (0–1%).
How quickly can I get a bridging loan?
Bridging loans can typically complete in 5 to 14 working days, significantly faster than a traditional mortgage (4–8 weeks). Some lenders offer rapid completions in 3–5 days for straightforward cases. Speed is a main advantage, making bridging suitable for auction purchases.
Are bridging loans regulated by the FCA?
Bridging loans secured against a property that is or will be your main residence are regulated by the FCA. Most investment, buy-to-let and commercial bridging loans are unregulated. The distinction affects process, documentation and protections.

Official Sources & References

Data verified against official UK sources. Last checked April 2026.