Your loan details
Rate & term
Rolled-up interest
No monthly payments. Interest accrues and is repaid with the loan at the end of the term.
Early repayment
Repay early and you stop paying interest on the same day. No penalty.
Net vs gross LTV
Lenders calculate LTV on the net loan after deducting interest and fees.
Indicative only
Actual rates depend on case complexity, security, credit profile, and market conditions.
Your indicative cost
Based on the figures entered. These are estimates only.
Loan-to-value (LTV)
Indicative figures only. Actual costs depend on individual circumstances, credit profile, and prevailing lender rates. Simply Bridging is authorised and regulated by the FCA (FRN 831644).
How bridging loan costs are calculated
Bridging finance works differently to a standard mortgage. Here is what makes up the total cost of a bridging loan.
Bridging loans are priced on a monthly rate rather than an annual one, because you typically hold them for a fraction of a year. A rate of 0.70% per month is roughly 8.4% per annum, but holding the loan for just six months means your actual interest cost is around 4.2% of the amount borrowed. Rates are influenced by your loan-to-value, property condition, whether the loan is regulated or unregulated, credit history, and overall complexity.
Most bridging lenders charge an arrangement or facility fee of 1% to 2% of the gross loan amount. This is typically deducted from the net loan rather than paid upfront. Some lenders charge a flat fee for smaller loans. Our calculator defaults to 2%, which is the most commonly seen figure across the market.
Unlike a standard mortgage, bridging loans do not require monthly repayments. Interest accrues on the outstanding balance and is repaid in full, along with the principal, at the end of the term. This makes bridging far more manageable during a refurbishment or whilst waiting for a sale to complete. The lender accounts for rolled-up interest when calculating the net amount they will lend.
LTV is the ratio of your loan to the value of the security property. Most bridging lenders will lend up to 75% LTV on a first charge basis, with some specialist lenders accepting up to 80%. The lower your LTV, the sharper the rate you can typically secure. If you have an existing mortgage on the security property, lenders will calculate both the net and gross LTV when assessing the overall risk.
- Valuation fee — typically £500–£1,500. Automated valuation options (from around £99) may be available for properties up to £1m.
- Lender legal fees — the lender requires their own solicitor to review the title and security. Typically £500–£1,200.
- Your own legal fees — typically £750–£2,000 depending on complexity.
- Exit fee — not all lenders charge one. We avoid lenders who do where possible.
- Broker fee — our fee is agreed and confirmed in writing before you make any commitment.