Bridging Loan Cost Calculator UK 2026

Bridging Loan Calculator

Enter your figures below to see the total cost of your bridging facility. The calculator handles rolled-up (compound) and simple interest, applies arrangement and exit fees, and estimates the equivalent annual percentage rate.

How bridging loans work in the UK

A bridging loan is a short-term, secured property loan designed to plug a temporary financing gap. The borrower puts up a UK property (residential, commercial or land) as security, draws down a lump sum, and repays the full balance — capital plus interest — within an agreed term of 1 to 24 months. The defining characteristic is that interest is quoted and charged monthly, not annually, because the loan is so short-lived that an annual rate would mislead the borrower about the true cost.

The market is dominated by specialist non-bank lenders. The largest active UK bridging lenders in 2026 include Together Money, Octane Capital, MT Finance, Octopus Real Estate, Castle Trust Bank, Precise Mortgages, Hope Capital and Bridgebank Capital. High-street banks (HSBC, Barclays, NatWest, Lloyds) generally do not participate in the bridging market — they consider the underwriting too bespoke and the risk profile incompatible with their standard mortgage frameworks.

Underwriting hinges on two questions: (1) is the security property worth what you claim, and (2) how will you repay the loan at the end of the term? Lenders call the latter the exit strategy, and a credible exit is more important than your credit score. The three classic exits are sale of the security property, sale of another property, or refinance onto a long-term mortgage. Without a documented exit, even pristine credit and a low loan-to-value will not get the deal approved.

The Bridging & Development Lenders Association (BDLA), the trade body representing most of the UK bridging market, reports that the sector originated approximately £8.5 billion of new loans in 2024, of which roughly 35% was regulated (residential, owner-occupied) and 65% was unregulated (investment, commercial, land). The market continues to grow as mainstream mortgage timescales stretch and property auctions proliferate.

2026 bridging loan rates and fees at a glance

Headline rates have softened slightly from 2024 highs as the Bank of England base rate edged down and competition among specialist lenders increased. The table below summarises the typical 2026 ranges for both regulated and unregulated bridging.

The single biggest swing factor is asset class. Lending against a standard freehold house in a major UK city attracts the headline rate; lending against semi-commercial, mixed-use, holiday-let or development land lifts the rate by 0.10-0.30% per month. Refurbishment bridging (where the lender funds renovation works as well as purchase) adds 0.10-0.20%.

Regulated vs unregulated: which applies to you?

The dividing line is occupation. If the property securing the loan is your home, your second home, a holiday home you personally use, or a property occupied by an immediate family member, the loan is regulated and the lender must be authorised by the Financial Conduct Authority (FCA) to enter into a regulated mortgage contract. The applicable rulebook is the Mortgages and Home Finance: Conduct of Business sourcebook (MCOB), and the borrower benefits from affordability assessments, suitability advice and a cooling-off period.

If the property is a buy-to-let, a commercial unit, a development site, land or any other non-occupied asset, the loan is unregulated. The lender may still be FCA-authorised for other activities (such as consumer credit) but the bridging transaction itself sits outside MCOB. Unregulated transactions complete faster (often 5-14 working days) because there is no statutory cooling-off period, but borrower protection is correspondingly weaker. You cannot complain to the Financial Ombudsman Service about a purely commercial bridging dispute.

Borderline cases: Buy-to-let secured against a property the borrower previously lived in (within the past 12 months) — likely regulated under MCOB transitional rules. Semi-commercial property where the borrower lives above the shop — regulated. Holiday let used personally for more than 40 nights a year — possibly regulated. When in doubt, ask the lender to issue both regulated and unregulated terms and let your solicitor advise.

How to verify a lender's FCA status

1. Go to register.fca.org.uk and enter the lender's trading name or Firm Reference Number (FRN).
2. Check the firm is Authorised (not 'Application Pending' or 'No Longer Authorised').
3. Confirm the permissions list includes Entering into a regulated mortgage contract and Administering a regulated mortgage contract.
4. Cross-check the company's registered address and trading address. Clone-firm warnings appear prominently at the top of the entry.
5. Check the FCA's scam warning list for any matches to the firm name or trading style.

Interest methods explained: serviced, rolled-up and retained

Three methods of charging interest dominate the UK bridging market. Each has a different cash-flow profile and a different total-cost profile. Choosing the wrong method on a long loan can cost an extra £1,000-£2,500 over a 12-month bridge on a £250,000 facility.

Retained interest

The lender deducts all the interest at drawdown. You receive less cash than the headline loan amount but make no monthly payments. Example: a 9-month retained-interest bridge of £200,000 at 0.79%/month sees the lender retain £14,220 of interest, so you receive £185,780 net at completion. The full £200,000 is repayable at the end of the term. This is the most common method on short bridges (≤12 months) because it removes default risk — the lender already holds the interest.

Serviced interest

You pay the monthly interest out of your own income or other resources. The full loan amount lands in your bank account. On the same £200,000 at 0.79%/month, you would pay £1,580 per month and repay the £200,000 principal at the end. Serviced is cheaper overall (no compounding) but the lender requires evidence you can afford the monthly payments — which often means an affordability assessment and proof of income.

Rolled-up interest

Each month's interest is added to the outstanding balance and the next month's interest is calculated on the higher balance. On £200,000 at 0.79%/month rolled up for 9 months, the balance grows to roughly £214,684 (vs £214,220 for simple interest — a difference of £464). Over 18 months the compounding effect grows materially: £230,766 vs £228,440 (£2,326 difference). Rolled-up is convenient but most expensive on longer bridges.

Worked example 1: £200,000 chain-break bridge (regulated, 9 months)

Sarah and James found their next home in Surrey at £580,000. They had agreed to sell their existing Reading property for £465,000, but the buyer's mortgage application stalled at the bank's underwriting stage. Their seller refused to wait beyond a 4-week deadline. They took a 9-month regulated bridge from a specialist lender to complete the purchase, with the intention of repaying from the eventual sale.

Loan parameters:

• Gross loan: £200,000
• Term: 9 months
• Monthly rate: 0.79% (regulated, owner-occupied)
• Arrangement fee: 2% of gross loan = £4,000
• Broker fee: 1% of gross loan, capped at £2,000
• Valuation: £720
• Lender legal fees: £1,250
• Their own conveyancing: £1,400
• Exit fee: 0% (this lender does not charge one)
• Interest method: Retained (lender deducts interest upfront)

Total cost calculation:

When their Reading sale eventually completed at month 7, they repaid the bridge two months early. Most lenders apply a minimum interest charge of 3-6 months even if the loan is repaid earlier, so Sarah and James did not receive a rebate on the retained interest. The total all-in cost was £23,590, equivalent to roughly 11.8% of the gross loan over 9 months, or approximately 15.7% APR.

Worked example 2: £450,000 unregulated auction bridge (12 months)

David, a buy-to-let investor, won a 3-bedroom semi at a regional UK property auction for £445,000 with the intention of refurbishing and renting. Completion was 28 days. He used an unregulated commercial bridge with rolled-up interest, exiting onto a buy-to-let remortgage 11 months later.

Loan parameters:

• Gross loan: £450,000 (covers purchase + £30,000 light refurbishment)
• Term: 12 months
• Monthly rate: 0.69% (unregulated, light refurb)
• Arrangement fee: 2% = £9,000
• Broker fee: 0.75% = £3,375
• Valuation: £1,150
• Lender legals: £1,950
• His own conveyancing: £2,200
• Exit fee: 0%
• Interest method: Rolled-up (compound)

Total cost (rolled-up over 12 months):

Each month's interest compounds. Starting at £450,000, after 12 months at 0.69%/month, the balance grows to £450,000 × (1.0069)^12 = £488,624, an interest cost of £38,624.

David's all-in cost was £56,299, or 12.5% of the original loan. The simple-interest equivalent would have been £37,260, so the compounding effect on a 12-month bridge added £1,364 to his bill. For loans extending beyond 12 months, switching from rolled-up to serviced interest typically saves 5-12% of total interest cost.

Worked example 3: £100,000 development exit bridge (6 months)

A property developer completed a small 4-unit conversion but had not yet secured a long-term refinance onto a buy-to-let portfolio mortgage. The development finance term had expired and the original lender wanted out. The developer used a 6-month unregulated 'development exit' bridge to pay off the development lender while marketing the units.

Gross loan £100,000 at 0.79%/month, 2% arrangement, no exit fee, serviced interest.

• Monthly interest: £100,000 × 0.79% = £790/month
• Total interest over 6 months: £4,740
• Arrangement fee: £2,000
• Valuation: £550
• Legal costs (combined): £2,200
• Total cost: £9,490

Equivalent simple APR: approximately 19.0% on a 6-month term (lower APR than the 0.79% headline implies, because fees are amortised over the short term).

Hidden costs to watch out for

The headline monthly rate accounts for only 60-70% of the total cost on a typical bridge. The remaining 30-40% sits in fees, many of which are not obvious from a price-comparison table. Six hidden costs commonly catch borrowers out.

1. Minimum interest period. Many lenders charge a minimum of 3 or 6 months interest even if you repay early. On a £250,000 loan at 0.79%/month, a 3-month minimum means £5,925 of interest is unavoidable even if you repay in week 2.
2. Default interest rates. If you miss the end-of-term deadline, default interest typically applies at 0.10-0.20% per month above the agreed rate, sometimes calculated on the entire balance not just the arrears. On a £200,000 loan, default interest at 0.20%/month equals £400/month extra.
3. Extension fees. If you need an extra month or two, lenders charge admin fees of £250-£500 plus continuation of the agreed rate. Some impose a higher 'extension rate' (e.g. 1.10%/month instead of 0.79%).
4. Title indemnity insurance. Where chancel-repair, restrictive-covenant or other title risks exist, the lender may require indemnity insurance costing £150-£800.
5. Telegraphic transfer (CHAPS) fees. £25-£45 per outbound payment; charged on the initial advance and any redemption funds.
6. Redemption admin fees. £150-£500 when you pay off the loan. Not the same as an exit fee; this is the lender's administrative cost of producing the redemption statement and releasing the charge.

Common use cases for UK bridging finance

Bridging is a niche product and is appropriate only in specific situations. The eight most common UK use cases in 2026 are:

• Chain-break: Buying a new home before selling your existing one when the chain collapses.
• Property auction: Funding the 28-day completion deadline imposed by UK property auctions.
• Refurbishment/flip: Buying a property in poor condition that does not meet mainstream mortgage criteria (no kitchen, no bathroom, structural defects), refurbishing it and either selling or remortgaging.
• Development exit: Paying off expensive development finance once construction completes, while you market or refinance.
• Tax bill or business cash-flow: Raising capital quickly against UK property to settle a tax bill, fund VAT, or seize a business opportunity.
• Probate or inheritance: Paying inheritance tax to release a property from the estate, or funding the buy-out of co-beneficiaries.
• Lease extension: Funding a lease extension on a flat where the existing short lease prevents mainstream mortgage approval.
• BMV (below market value) purchase: Buying a property at a discount where speed is essential to secure the transaction.

Some uses are inappropriate for bridging because cheaper alternatives exist: long-term cash-flow gaps (better served by overdraft, business loan or remortgage), consumer purchases (better served by personal loan or credit card), or any situation where you cannot articulate a credible exit within 24 months.

How to compare bridging loan offers

Comparing bridging quotes is harder than comparing residential mortgages because of the wide variation in fees and the lack of a standardised APR figure. Use this 7-step comparison framework to make like-for-like decisions.

1. Calculate total cost in pounds, not percentages. Add interest + arrangement + broker + valuation + lender legals + exit fee. Compare cash figures, not headline rates.
2. Use the same term assumption. Lenders often quote on different default terms (6 vs 9 vs 12 months). Re-run all quotes on the term you actually expect.
3. Use the same interest method. Convert all quotes to either serviced or rolled-up so the underlying maths is consistent.
4. Net the broker fee. Some brokers charge a flat fee, some take a percentage, some take both. Reduce the comparison to total broker cost in £.
5. Account for minimum interest periods. If your exit might happen at month 3, factor in the minimum interest clause of each lender.
6. Score the lender's reliability. A 0.10%/month rate saving is worth £180/month on £180,000 — but if the lender misses your completion date and the deal falls through, you lose far more.
7. Check the offer letter's small print. Look for unusual default-interest clauses, arbitrary admin fees, or 'survey re-inspection' fees that can add £300-£800.

Bridging vs traditional mortgage: side-by-side comparison

The fundamental difference is timescale. A mainstream UK residential mortgage takes 4-12 weeks to arrange and is designed to be repaid over 15-35 years. A bridging loan completes in 1-6 weeks and is repaid in 1-24 months.

For long-term financing of a home you intend to live in, a traditional mortgage is dramatically cheaper. Bridging is only cost-effective when speed is essential or when the property does not meet mainstream lending criteria.

Eligibility criteria for UK bridging in 2026

Bridging is more inclusive than mainstream mortgages but still has minimum eligibility. Typical 2026 criteria across the main UK lenders:

• Age: 18-85 at start (some lenders no upper limit if exit is asset sale rather than refinance)
• Residency: UK or overseas applicants accepted; non-UK residents may pay a 0.05-0.15%/month premium
• Loan size: £25,000 minimum to £25 million for largest lenders
• Loan-to-value: Maximum 70%-75% of open market value, sometimes 80% with additional security
• Credit history: CCJs, defaults, IVAs and discharged bankruptcy generally acceptable; live bankruptcy declined
• Property type: Residential freehold/leasehold, semi-commercial, commercial, land with planning, HMOs, holiday lets — all acceptable
• Property location: Throughout England, Wales, Scotland and Northern Ireland; isolated rural properties may attract premium pricing
• Exit strategy: Documented (memorandum of sale, mortgage AIP, refinance commitment) — non-negotiable

The application process step-by-step

From first enquiry to drawdown, a typical UK bridging loan moves through 8 stages over 2-6 weeks.

1. Initial enquiry (Day 1). Contact broker or lender directly, provide rough details: loan amount, property value, term, exit strategy.
2. Decision in principle (Day 1-3). Lender confirms appetite, indicates rate and fees in writing without full underwriting.
3. Formal application (Day 4-7). Complete application form, provide ID, address verification, proof of deposit funds, exit evidence.
4. Valuation instructed (Day 7-14). Lender instructs RICS-qualified surveyor to inspect and value the security property. Valuation fee payable on instruction.
5. Underwriting complete (Day 14-21). Lender reviews valuation, exit strategy and personal due diligence; issues formal offer letter.
6. Legal work (Day 14-28). Lender solicitor and your conveyancer exchange enquiries, complete searches, agree the legal charge.
7. Completion (Day 21-42). Funds drawn down; the legal charge registers at HM Land Registry; you receive your net advance.
8. Exit (Month 1-24). Sell property or refinance onto long-term funding; lender produces redemption statement and releases the charge upon repayment.

Refurbishment bridging: light, medium and heavy

Where the security property needs work, lenders categorise the project by intensity and price accordingly.

Light refurbishment

Cosmetic improvements only — repainting, kitchen replacement, bathroom replacement, new flooring. No structural changes, no permitted-development applications, no party-wall issues. Typical rate uplift: nil to +0.05%/month over standard bridging.

Medium (or 'planned') refurbishment

Internal reconfiguration without changing the building's footprint — knocking through walls, installing rooflights, extending kitchens into existing space. May require building regulations approval but not full planning. Typical rate uplift: +0.10%/month, often with staged drawdowns linked to surveyor's progress inspections.

Heavy refurbishment / conversion

Major works — extensions, conversions (house to flats, commercial to residential), structural changes requiring full planning permission. Often classified by lenders as 'light development finance' rather than bridging. Typical rate uplift: +0.15-0.25%/month, with project-managed staged drawdowns and monthly QS (quantity surveyor) inspections.

Tax treatment of bridging loan interest

The deductibility of bridging interest depends on the purpose of the loan and the borrower's tax status. Three scenarios cover most cases.

1. Owner-occupier residential

Interest is not deductible against any tax. The loan is treated as personal borrowing for personal use.

2. Buy-to-let landlord (individual)

Under Section 24 of the Finance (No. 2) Act 2015, individual landlords cannot deduct mortgage or loan interest from rental income. Instead, you receive a 20% basic-rate tax credit on the lower of (a) finance costs, (b) profits of the property business or (c) total income above the personal allowance. A higher-rate taxpayer pays an effective marginal rate of 40-45% on rental income with only a 20% relief credit on interest — significantly worse than the pre-2020 regime.

3. Commercial property or trading company

For limited companies (including buy-to-let SPVs), bridging interest is fully deductible as a business expense against trading or rental profits chargeable to corporation tax (currently 19%-25% in 2026). This is why many landlords have incorporated their portfolios since 2017.

Always refer to HMRC's guidance on finance cost relief for landlords, and consult the HMRC Property Income Manual for full treatment. Tax law changes frequently — confirm current rules with a qualified tax adviser before relying on any tax outcome.

Bridging loan vs second-charge mortgage vs personal loan

Borrowers considering bridging sometimes overlook cheaper alternatives. Three are commonly relevant.

For amounts under £50,000 with a clear repayment plan over 1-7 years, a personal loan is almost always cheaper than bridging. For amounts £25,000-£500,000 over 3+ years against habitable property, a second-charge mortgage typically beats bridging on total cost. Bridging wins when (a) speed is essential, (b) the property is not in mortgageable condition, or (c) the loan is purely short-term (<12 months) with a defined exit.

What an FCA-authorised bridging lender looks like in 2026

Use the following checklist when researching any UK bridging lender or broker. All items can be verified independently via the FCA Register or Companies House.

• Active entry on the FCA Register with status 'Authorised'
• Permissions include 'Entering into a regulated mortgage contract' (for residential bridging)
• Permissions include 'Credit broking' (for brokers) and 'Entering into a regulated credit agreement as lender' (for direct lenders)
• Registered office address matches Companies House filings
• Active membership of the Bridging & Development Lenders Association (BDLA) for the major specialist lenders
• Clear privacy policy and complaints procedure on the firm's website
• Use of a regulated solicitor (look up on the Law Society Find a Solicitor tool)
• RICS-qualified valuer (check at RICS Firms)
• Realistic timescales — be wary of any lender promising completion in under 5 working days for a regulated transaction

Frequently asked questions

What is a bridging loan?

A bridging loan is a short-term, interest-only secured loan typically used to bridge a temporary financing gap, most commonly when buying a new property before selling an existing one. Terms range from 1 to 24 months, and rates are charged monthly rather than annually. UK lenders quote rates of 0.55% to 1.5% per month, which equates to roughly 6.6% to 18% per annum. The loan is secured against UK property (either the property being purchased or another asset), and the entire balance is repaid in a single lump sum at the end of the term.

How much does a bridging loan cost in the UK in 2026?

On a £200,000 regulated bridging loan over 9 months at 0.79% per month with a 2% arrangement fee, total interest is roughly £14,220 (£1,580 per month) plus the £4,000 arrangement fee, a £995 broker fee, and around £1,500-£2,500 in legal and valuation costs. Total all-in cost ranges from £20,700 to £22,700, equivalent to about 11-12% APR. Unregulated commercial bridging is often slightly cheaper because the regulatory burden is lower, but eligibility, asset class and exit strategy heavily influence the final rate.

What is the difference between regulated and unregulated bridging?

A regulated bridging loan is one secured against a property that the borrower or a close family member lives in. These fall under MCOB rules and require the lender to be FCA-authorised, conduct affordability assessments and offer cooling-off periods. Unregulated bridging is secured against investment property, commercial property or land. Unregulated bridging is faster but borrower protection is limited — you cannot complain to the Financial Ombudsman Service about a purely commercial transaction. Always confirm the lender's FCA status on the FCA Register before signing.

Are bridging loans interest-only?

Yes — almost all UK bridging is interest-only with the principal repaid in full at the end of the term. Three common interest methods exist: retained (deducted upfront), serviced (paid monthly from your income), and rolled-up (compounded onto the balance). Retained is most common on short bridges because it removes default risk during the term; serviced is cheapest overall on longer terms; rolled-up is most convenient but most expensive on long bridges due to compounding.

How quickly can I get a bridging loan?

Unregulated bridging can complete in 5-14 working days when paperwork is in order and the security property has a clean title. Regulated bridging takes longer — typically 3-6 weeks — because of MCOB affordability assessments, cooling-off periods and the lender's duty to assess suitability. Speed depends heavily on the quality of your solicitor, valuation slot availability and how quickly Land Registry searches return.

What fees are charged on top of monthly interest?

Expect six layers: arrangement fee 1.5-2% of loan, broker fee 0.5-1.5%, valuation £350-£1,500, lender legal £750-£2,500, your conveyancing £900-£2,000, and sometimes an exit fee 0.5-1%. CHAPS transfer fees, redemption admin fees and possible title indemnity insurance add another £100-£500. Always review the lender's offer letter line by line and ask your solicitor to flag any unusual clauses.

Is a bridging loan tax-deductible?

For individual residential buyers, bridging interest is not deductible against income. For individual landlords, the Section 24 restriction means only a 20% basic-rate tax credit applies. For limited companies, including buy-to-let SPVs, bridging interest is fully deductible as a business expense against profits chargeable to corporation tax. Always check the latest HMRC Property Income Manual and consult a qualified adviser before assuming deductibility.

What happens if I can't repay at the end of the term?

Three options: request an extension from the existing lender (usually 1-3 months at the same rate plus a small admin fee), switch to a new bridge (paying arrangement fees again), or face forced sale by the lender at auction. Default interest is typically 2% per month, dramatically more expensive than the agreed rate. Always confirm exit feasibility before drawing down the loan.

Can I get a bridging loan with bad credit?

Yes — bridging lenders are asset-based, so credit history matters less than equity in the security property and the strength of the exit strategy. Some specialist lenders will lend at 65-70% LTV even with CCJs, defaults or recent bankruptcy discharge, although rates may rise to 1.2-1.5% per month. Without a credible exit, even pristine credit and low LTV will not get the deal approved.

What is the maximum LTV on a UK bridging loan?

Most regulated bridging caps loan-to-value at 75%. Unregulated commercial bridging typically maxes at 70-75% LTV, but for non-standard assets the cap may drop to 60-65%. A few lenders offer 80% LTV in exchange for higher rates or additional security. The LTV is calculated against the 90-day or 180-day forced-sale value, not the open market valuation — some lenders quote against the lower figure to manage their risk.

Are bridging loans regulated by the FCA?

Bridging loans are FCA-regulated only when secured against a property occupied by the borrower or immediate family. The applicable rulebook is the Mortgages and Home Finance: Conduct of Business sourcebook (MCOB). Bridging on pure investment, commercial, semi-commercial or land is unregulated. You can confirm any lender's authorisation status free of charge at register.fca.org.uk before signing.

How does the FCA Register lookup work?

Go to register.fca.org.uk, enter the lender's trading name or firm reference number (FRN), and the Register shows authorisation status, regulated activities permitted, address, directors and any consumer alerts. For a regulated bridge, look for permissions including 'Entering into a regulated mortgage contract'. Cloned-firm warnings appear prominently. The FCA Register is the only authoritative source — never rely on a lender's own marketing materials to confirm authorisation.

What is rolled-up interest?

Each month's interest is added to the outstanding loan balance and the next month's interest is calculated on the higher balance. A £200,000 loan at 0.79% per month rolled up for 12 months ends at roughly £219,777 owed, not the simple-interest figure of £218,960 (a £817 difference). Rolled-up is convenient because there is nothing to pay each month, but the compounding effect makes long bridges materially more expensive than serviced interest.

Can I use a bridge to buy at auction?

Yes — auction purchases are one of the most common use cases. UK property auctions require completion within 28 days, too tight for a mainstream mortgage but within bridging timescales. Lenders such as Together, MT Finance, Octopus Real Estate, Precise Mortgages and Castle Trust Bank actively market 'auction bridging' products. Arrange a decision in principle and a valuation slot booking before auction day, because if your bid wins you are contractually committed.

What is a chain-break bridging loan?

A chain-break bridge funds the purchase of your new home before the sale of your existing home completes. Common scenario: your buyer's mortgage application is delayed and your seller refuses to wait. Chain-break bridging is almost always regulated. Typical loan-to-value across both properties is 70-75%. The exit risk — that the sale falls through again — is the most important factor in pricing, so a 'sold subject to contract' status is usually a minimum requirement.

Glossary of bridging loan terminology

• APR (annual percentage rate): The annualised cost of borrowing including fees, standardised for comparison.
• BDLA: Bridging & Development Lenders Association, the UK trade body for bridging lenders.
• CHAPS: Clearing House Automated Payment System; same-day high-value bank transfers used for property completions.
• Charge: A legal claim registered against a property at HM Land Registry, securing the lender's right to repayment.
• Default interest: Higher rate of interest applied when a borrower misses the repayment deadline.
• Exit fee: A charge payable at the end of the loan, in addition to repayment of principal and interest. Less common in 2026.
• Exit strategy: The borrower's documented plan to repay the loan at end of term (sale, refinance, other source of funds).
• FCA: Financial Conduct Authority, UK regulator of consumer financial services.
• First charge: The senior legal claim on a property, taking priority over later charges. Most bridges are first-charge.
• FRN: Firm Reference Number, the unique identifier of every FCA-authorised firm.
• Gross loan: The full headline loan figure before deduction of retained interest and fees.
• LTV (loan-to-value): The ratio of the loan amount to the property's open market value, expressed as a percentage.
• MCOB: Mortgages and Home Finance: Conduct of Business sourcebook, the FCA rulebook governing regulated mortgages and bridging.
• Net loan: The cash you actually receive after deduction of retained interest and arrangement fees.
• OMV: Open market value, the price a willing buyer would pay a willing seller in an unforced sale.
• Retained interest: Interest deducted from the loan advance at drawdown; no monthly payments required.
• Rolled-up interest: Interest added monthly to the loan balance and compounded; repaid at term end.
• Second charge: A junior legal claim on a property, behind an existing mortgage. Smaller bridging market.
• Serviced interest: Interest paid monthly from the borrower's own income; principal repaid at term end.
• SPV: Special purpose vehicle, a limited company set up specifically to hold property.

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About this calculator

Last updated 25 May 2026 by Mustafa Bilgic, independent operator of UK Calculator (Adıyaman, Turkey — see About). Figures cross-checked against published 2026 rate sheets from Octopus Real Estate, MT Finance, Together Money, Precise Mortgages and Castle Trust Bank, and against the FCA's MCOB rulebook. The calculator handles all three common interest methods (retained, serviced, rolled-up) and applies UK-standard fee structures. This is general information only and does not constitute regulated mortgage advice or tax advice. Always consult an FCA-authorised mortgage broker, a solicitor and a qualified tax adviser before entering any bridging loan agreement.