Bridging Loan Calculator
Find out exactly how much your Bridging Loan will cost!
Our easy-to-use calculator gives you what you need.
Bridging Loans, How to calculate and Apply.
Our simple-to-use bridging finance calculator has been designed to measure the possible costs of bridging loans effortlessly. The calculator will also allow fast calculations of fees and LTV (Loan to Value) on top of the interest.
How To Use Our Free Bridging Loan Calculator?
The bridging loan calculator on this page is designed to make the process of figuring out the likely cost of taking out bridging loans easy. There are numerous lenders out there, many of whom charge specific interest rates and contract fees.
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Property Value
This is equal to the value of the property, which is to be used as collateral for loans.
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Outstanding Mortgage
This box only has to be filled if the bridging loan does not repay the mortgage. If there is a mortgage outstanding which will be entirely repaid, please leave the number as '0.'
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Loan Amount Required
That is the net loan needed – the sum that you need to obtain before any fees or interest are applied to the loan.
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Interest Rate
That is the interest rate paid on the bridging loan. The calculator, as with most bridging loans, measures the monthly interest rate.
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Lender Arrangement Fee
That is the fee charged by the lender to arrange the service. Enter the percentage charged by the lender.
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Lender Exit Fee
Some borrowers charge 'exit fees' for their facility. Again, this is determined based on the amount, so please enter the amount paid.
Lender Arrangement Fee
Lender Exit Fee
Total Interest
Gross Loan (Interest Paid)
Gross Loan (Rolled Up Interest)
Loan To Value (Net Loan)
Bridging Loan Tariffs & Fees – What Figures Should I Enter?
While our calculator will always provide accurate data, the performance will only be as realistic as the information that is entered.
When considering the conditions to be entered, it is practical to use the terms set out below, assuming your situations are specific and your credit history is clean. Of course, bridging loan lenders are usually versatile and may allow for some complexities. Still, if your situations are incredibly complicated, it may be worth calling us for a quote, as practical terms can be challenging to predict.
In general, for a simple application, it is reasonable to use industry-standard monthly interest rates when using the calculator. Of course, not all of our applications are written based on those amounts, so they are best used as a reference only.
Lender Arrangement Fee & Lender Exit Fee
Many bridging loans are subject to a loan agreement charge of 2 percent of the loan sum. It is usually the best input figure when using our bridging finance calculator.
As a bridging loan broker, we will also do our utmost to reduce the cost of financing where possible. As such, we might be able to negotiate a discount of 1.5 per cent, or even 1 percent, on occasion.
Reductions in the loan contract charge are more likely, the more extensive the loan is. Lender’s exit fees are more difficult to estimate, as they continue to differ from lender to lender. Since we’re always trying to reduce your expenses, there’s a decent chance that we’ll be able to finance your application without charging the lender’s exit charge.
Understanding Your Results
Gross & Net Loan
The calculation applies to the gross loan and the net loan figures. This will probably sound overwhelming at first, but it’s pretty easy.
The gross loan is equal to the total amount borrowed, including all of the fees, charges and interest incurred.
The net loan is the loan amount that is granted to you and does not include any fees, charges or interest.
Using the net loan to determine how much money you can use. Using the gross loan to determine how much money you’re going to return to the lender.
Total Interest
Total interest is essentially the amount of interest paid in the course of the loan. This is generally added to the loan and paid back until the bridging loan is repaid. It can also be deducted from the loan, which means that the amount of interest will reduce the net debt.
Loan to Value (Net Loan)
The loan to value (net loan) is structured to tell you what the cost of your loan is. Loan to value is a method used by borrowers to express the ratio of the amount lent as a % of the total value of the property. This figure is significant, as the maximum loan would always be limited to the available value by the maximum loan.
How Much Can I Borrow?
The overall loan to the value that we can usually obtain depends on the various types of property. In general, we can achieve the following:
- Security Max LTV
- Residential (Unregulated) 80%
- Commercial 75%
- Land Without Planning 50%
- Land with Planning 65%
Bridging Loan Calculator Explained
Our bridging loan calculator makes it easy to figure out your total cost. It functions in a similar way to the regular mortgage calculator but helps you to calculate both your monthly interest and overall costs.
It’s worth mentioning that we don’t have the option of paying broker fees on our calculator. This is because we never charge a broker’s fee on loans over £100,000. If you are considering taking bridging finance through another broker, you may need to add their initial outlay and broker fees to your overall costs.
We will never charge you upfront processing fees to arrange a bridging loan and never apply hidden charges to your loan.
What Is A Bridging Loan?
Bridging loans are secured loans that fill the gap between making a purchase and making other funds available. Since they are protected, you would need to own house, land, or other high-value assets to apply.
They\’re also used for buying one property when you\’re trying to sell another. Bridging loans are mostly used by landlords and property developers to finance projects. They are becoming more and more popular with regular homeowners because the timing of house chains doesn’t always match up.
The Financial Conduct Authority governs all personal bridge loans (FCA). They typically come under the laws on mortgages or loans and consumer credit.
We hope you find our bridging loans calculator useful, and we hope you can put it to good use when looking for an online solution to calculating everything to do with bridging loans.