Bridging Loan Calculator

Bridging interest is charged monthly on the gross loan, usually somewhere between 0.75% and 1.5% a month. You can roll it up (added to the balance and repaid at the end), retain it (the whole term's interest is held back from the advance upfront) or service it (pay it monthly). This tool uses simple interest on the gross loan.

The gross loan is the full facility the lender secures against the property. The net advance is what actually lands in your account, after the arrangement fee and any retained interest are taken off the top. On a rolled-up or serviced deal the net advance is the gross loan minus the arrangement fee; on a retained deal the full term's interest comes off as well.

Short-term needs where a normal mortgage is too slow or will not lend: auction purchases, breaking a chain, buying an unmortgageable property, and refurbishment projects. It is the finance behind most BRRR deals and flips, repaid when you refinance onto a buy-to-let mortgage or sell.

The monthly interest over the term, plus an arrangement fee (often around 2% of the loan) and sometimes an exit fee. On top of that you will usually pay valuation and legal fees, which this calculator does not include. Add them to the total cost when you compare deals.

The headline interest is the same; what changes is the cashflow. Rolled-up keeps your monthly outgoings at zero but you repay the most at the end. Retained deducts the interest from your advance, so you receive less on day one. Serviced means you pay the interest each month and keep the largest advance.