This free UK bridging loan calculator gives you the full estimated cost of any bridging facility you are modelling: interest (rolled-up or serviced), arrangement fee, exit fee, valuation and legal costs, and a month-by-month balance for the whole term. Enter your figures and the calculator auto-suggests a rate based on your LTV and asset type, then produces a printable result you can take to lenders.
We built this calculator for our own use, and we use it every day. The version on this page is the same tool our team runs to model deals before they go to the lender market. FD Commercial arranges bridging loans from £250,000 across England, Scotland and Wales, with no broker fee on most transactions. For HNW and large-loan bridging above £1m, where private bank rates from 0.3% per month and LTVs up to 90% via cross-collateralisation are available, use the HNW Bridging Calculator instead.
What this calculator covers
Loan amount, existing charges, property value and LTV. Monthly interest rate with an auto-suggested figure based on asset type and LTV. Rolled-up (compounding) or serviced (monthly) interest. Arrangement fee, exit fee, valuation and legal costs. A full month-by-month balance and early redemption figure.
Rates shown are indicative for 2026. Actual terms depend on lender, property and borrower profile.
UK Bridging Loan Calculator
Results update automatically. All figures are illustrative estimates.
Month-by-month breakdown
| Month | Interest | Balance | Early redemption |
|---|
Indicative estimates only. Assumes monthly compounding for rolled-up interest. Excludes broker fees, early repayment charges, stamp duty or lender-specific variations. Most lenders cap gross LTV at 75% (lower for land and commercial). Property may be at risk if loan not repaid. For personalised terms contact FD Commercial.
Why we built this
Most free bridging calculators on the UK market produce a single repayment figure on a flat interest assumption. We built ours differently because the calculation our team needed when modelling client deals was the full picture: rolled-up versus serviced, the arrangement fee added to the loan or paid upfront, the exit fee on gross versus net, and the month-by-month balance with an early redemption figure for every month of the term. We use this calculator in our own deal modelling before going to lenders. If a number on this page does not match what a lender then quotes, we want to know why, because the assumptions in this tool reflect how the market actually prices.
What makes this bridging loan calculator different
Most free bridging calculators online answer one question: roughly how much will the monthly interest be? That answer is rarely useful on its own. The grand total cost of a bridge is shaped by the relationship between four or five variables, and changing any one of them can move the all-in cost by tens of thousands of pounds on a single deal.
The calculator above models all of them. Specifically:
- Rolled-up versus serviced interest. A toggle, not a separate calculator. You can compare both side by side on the same scenario.
- Arrangement fee added to the loan, or paid upfront. Most lenders add it. The calculator defaults to that but lets you switch and see the difference.
- Exit fee calculated on gross or net loan. Lenders differ on which base they use. A 1% exit fee on the gross loan can cost meaningfully more than on the net advance.
- Month-by-month balance and early redemption figure. If you might exit early, you need to know what the redemption figure is at month three, month six, month nine. The breakdown table gives you all of it.
- Rate auto-suggest from LTV and asset type. Click the link in the rate field and the calculator estimates a realistic indicative rate based on the LTV band and security type. Same logic our team uses for first-pass deal sizing.
- Print and copy-to-clipboard output. Take the result to a broker, your accountant, or the lender directly. No login, no signup, no email capture.
What the calculator does not do is pretend to be a quote. It gives you the cost a bridge of those parameters should run at in the current market. The actual rate a lender then offers depends on their appetite that week, the strength of your exit, and your borrower profile. The point of this tool is to give you the right starting number to compare offers against.
How bridging loan costs add up
The total cost of a bridging loan is not just the interest. It is the sum of several components, and the relationship between them can shift the grand total significantly depending on how the loan is structured.
Interest is the largest cost on most bridging loans. On a rolled-up basis, the interest compounds monthly against a growing balance, so the longer the loan runs, the more the total diverges from a simple rate-times-months calculation. On a 12-month loan at 0.85% per month with rolled-up interest, the effective annual rate is higher than 10.2% because each month's interest accrues on a larger base than the month before. Run a 24-month version and the gap widens further.
The arrangement fee, typically 1% to 2% of the gross loan, is usually added to the advance rather than paid upfront. When it is added to the loan, it attracts interest for the full term and forms part of the gross LTV calculation. On a £500,000 loan with a 2% arrangement fee added, the gross advance becomes £510,000 and interest runs on that figure from day one. Paying the fee upfront avoids that interest cost but requires £10,000 cash on completion that most borrowers prefer to preserve.
Exit fees, where charged, are calculated on either the gross loan or the net advance depending on the lender. The base matters: a 1% exit fee on a £510,000 gross loan is £5,100; the same 1% on the £500,000 net advance is £5,000. Trivial on its own but worth checking, because lenders rarely volunteer the distinction at the indicative terms stage.
Valuation and legal fees are generally fixed regardless of loan size, which means their impact as a percentage of total cost shrinks on larger transactions. The figures most borrowers underestimate are not the headline rate or arrangement fee, which are quoted upfront. They are the compounding effect of rolled-up interest over a longer term, and the lender's own legal fees which are typically recovered from the borrower after heads of terms are issued.
What affects your bridging loan rate
The monthly rate a lender quotes reflects the risk they are taking on the specific transaction. Loan-to-value is the primary driver: a loan at 50% LTV against a standard residential property will attract a meaningfully lower rate than the same loan at 70% LTV. Most lenders operate tiered rate structures with defined bands at 60%, 65%, 70% and 75% LTV. The auto-suggest function on the calculator applies the same logic.
Asset type has a direct effect. Residential security is the lowest-risk class and attracts the sharpest rates. Mixed-use property attracts a modest premium. Commercial and semi-commercial property carries higher rates because it has a smaller buyer pool and longer exit timelines. Land without planning permission is the highest-risk class and commands the highest rates, typically 0.3% to 0.5% per month more than residential.
Borrower profile matters on regulated bridging loans, where the lender conducts a full affordability and exit strategy assessment. On unregulated loans, the exit strategy itself carries more weight than income, and a credible, evidenced exit can offset a weaker borrower profile in lender credit decisions. What we see most often when an applicant gets a sharper rate than the indicative price is a combination of: clean credit, a property the lender's valuer is comfortable with, and an exit (sale or refinance) where the lender can see the route to repayment without doing the work themselves.
One thing borrowers often underestimate is how much negotiating power they actually have on a quote. On larger loans (above £1m), competing two or three lenders against each other through a broker introduction can move the rate by 10 to 20 basis points per month. That is not a marketing claim. It is what happens when lenders know they are bidding against each other for a clean, well-packaged case.
Three worked examples using this calculator
The fastest way to see how the variables interact is to run them. These three scenarios are typical of cases we place every month.
£500k bridge against a £900k Kent property, 6-month term
A homeowner needs to complete on a new purchase before the sale of their existing house has gone through. They need a 6-month bridge of £500,000 against their current property valued at £900,000, free of charges. Plan: repay from the sale of the existing house once it completes.
Low LTV residential, clean exit, short term. Gets a sharper rate than the headline 0.85% the calculator defaults to, which is what the auto-suggest reflects. On a bridge this size and shape, the broker route typically secures rates at the lower end of the band.
£1.5m bridge against a £2.2m HMO conversion, 12 months
A landlord buys a tired five-bed in a London commuter belt to convert to a six-bed HMO. Needs £1.5m to complete the purchase plus light refurbishment funding. Plan: exit onto a specialist HMO mortgage once licensing is complete.
This is where rolled-up interest starts to matter. Over twelve months at 0.79% per month compounded, the interest line is more than 10% of the gross loan. The early redemption figure at month nine (which the calculator displays) gives the borrower a concrete decision point if the licensing comes through faster than expected.
£3m bridge against a £4.5m mixed-use building, 18 months
A small business owner buys a mixed-use building with their trading premises on the ground floor and two flats above. Needs an 18-month bridge while planning is sought for an extension to the upper flats. Plan: refinance onto a long-term commercial mortgage post-planning, against the higher valuation.
The 18-month term plus the commercial security premium plus rolled-up compounding pushes the all-in cost above £600k. Worth doing if the planning gain on exit lifts the GDV to £5.5m, which would refinance comfortably. Not worth doing if the planning case is speculative. The calculator does not assess the deal logic, but it does give you the cost figure to test the assumptions against.
How to interpret your calculator result
The headline number to focus on is the grand total cost, not the monthly rate. Two bridges quoted at the same monthly rate can have grand totals tens of thousands of pounds apart once arrangement fees, exit fees, and term length are factored in.
For comparison shopping, use the same parameters across multiple quotes. If lender A quotes 0.65% per month with a 2% arrangement fee added to the loan and a 1% exit fee on the gross, and lender B quotes 0.75% per month with a 1% arrangement fee paid upfront and no exit fee, the calculator will tell you which is actually cheaper on your specific scenario. Often the answer is not the lower rate.
The early redemption column matters more than borrowers realise. If your exit could land at any point between month four and month nine, knowing the redemption figure at each of those months tells you how much flexibility you have. On rolled-up bridges, the difference between month six and month nine can be tens of thousands of pounds in saved interest.
What the calculator excludes is also worth being clear on. Stamp duty, lender legal fees recovered after heads of terms (typically £1,000 to £2,500), insurance premiums on heavy refurbishment, monitoring surveyor fees on development-style bridges, and any broker fee a non-FD-Commercial broker might charge. Always confirm the all-in cost with the lender directly before committing.
Common mistakes we see when budgeting for a bridge
Most borrowers who under-budget on a bridge make one of the same handful of mistakes. None of them are about the headline rate.
- Treating the monthly rate as the comparison metric. Two lenders at the same headline rate can have all-in costs that differ by 15%. Always compare grand total cost on identical terms.
- Forgetting the rolled-up interest compounds. A 12-month bridge at 0.85% per month does not cost 10.2% of the loan. It costs more, because each month's interest accrues on a larger base than the month before.
- Ignoring the exit fee base. A 1% exit fee on gross loan can be meaningfully more than 1% on net advance. The calculator handles both, the lender will tell you which they use, the borrower needs to ask.
- Budgeting the term too tight. If you think the exit will land in six months, model nine. Bridges that run over term incur extension fees and sometimes default interest rates, which can wipe out the savings from a sharper headline rate.
- Forgetting the lender's legal fees. Recovered from the borrower after heads of terms are issued. Typically £1,000 to £2,500. The calculator's "legal fees" field is for your own solicitor; the lender's are on top.
- Underestimating the negotiating power on larger loans. On bridges above £1m, lenders compete on rate when they know they are bidding against another lender. The right broker introduction can move the all-in cost by tens of thousands of pounds.
Also on mobile
Use this calculator and 3 more inside the FD Commercial app
Free on Google Play. No signup, no in-app purchases. Includes the Bridging Cost Analyser (comparing rolled-up, retained and serviced side by side), Development Appraisal, BTL Stress Tester, and a Stamp Duty Calculator covering SDLT, LBTT and LTT.
Got a cost estimate from the calculator? We can source indicative bridging loan terms before you commit. No broker fee on most transactions. We work with all lenders from family office to private bank across England, Scotland and Wales.
Call 03300 100315Frequently asked questions
What is a typical bridging loan interest rate in 2026?
Rates typically range from 0.55% to 1.25% per month, depending on LTV, asset type and borrower profile. Residential loans at under 65% LTV attract the sharpest rates. Land and commercial security carries a premium. Rates are quoted monthly, not annually. For HNW and large-loan bridging above £1m, private bank rates from 0.3% per month are available; use the HNW Bridging Calculator.
What is the difference between rolled-up and serviced interest?
Rolled-up means no monthly payments: interest compounds on the loan balance and is repaid in full on exit. Serviced means you pay the monthly charge each month and the loan balance stays flat. Rolled-up is more common where the property generates no income during the bridge period. Serviced lowers the total cost but commits you to monthly outgoings.
What is the maximum LTV on a bridging loan?
Most lenders cap gross LTV at 70 to 75% for residential property, 65% for commercial and 60 to 65% for land. Gross LTV includes the arrangement fee if added to the loan. Some lenders will consider higher LTVs against additional security; we have arranged cross-collateralised bridging to 90% effective LTV through UK private banks.
What arrangement fee do bridging lenders charge?
Lender arrangement fees typically range from 1% to 2% of the gross loan amount, usually added to the loan rather than paid upfront. When added to the loan it forms part of the gross advance and attracts interest for the full term. Tiered fee structures that drop on facilities above £1m are common with specialist and challenger lenders.
How quickly can a bridging loan complete?
Straightforward cases with clean titles and experienced solicitors can complete in 48 hours to two weeks. The UK market average was 47 days in 2024 per BDLA data. Complex cases involving commercial property, title issues, or layered borrower structures take longer. Pre-prepared documentation cuts the timeline significantly.
What is an exit fee on a bridging loan?
An exit fee is charged on repayment, typically 0.5% to 1% of the gross loan. Not all lenders charge one. Where it applies, it is calculated on either the gross loan or the original net advance depending on the lender's terms. The calculator models both via the "calculate exit fee on gross loan" checkbox.
What does rolled-up interest actually cost over 12 months?
On a £500,000 loan at 0.85% per month with rolled-up interest, the total interest over 12 months is approximately £53,500. The effective annual rate is 10.7%, not 10.2% (0.85% × 12), because each month's interest accrues on a larger base than the month before. The month-by-month breakdown on the calculator shows exactly how the balance grows.
Why does the calculator add the arrangement fee to the loan by default?
Because that is how most UK bridging lenders structure it. Adding the fee to the gross advance means you receive the full net amount you need at completion, and the fee is repaid alongside the principal at exit. Paying upfront is unusual and means you need additional cash on day one. Toggle the "add arrangement fee to loan" checkbox to compare both approaches.
How accurate is the LTV-based rate auto-suggest?
The auto-suggest produces a realistic indicative rate based on the LTV band and asset type, calibrated against current 2026 market pricing. It is accurate enough for forecasting and broker shortlisting, which is how we use it internally. It is not a quote. Actual rates depend on the lender, the borrower's profile, the exit strategy, and any promotional pricing in the market that month.
What is not included in the calculator's grand total cost?
The calculator excludes stamp duty, broker fees (FD Commercial does not charge one on most cases), insurance premiums where required, monitoring surveyor costs on heavy refurbishment, and any lender-specific charges such as inspection or document drawdown fees. It assumes monthly compounding for rolled-up interest. Always confirm the all-in cost with the specific lender before proceeding.
Do I need a broker if I have used the calculator?
The calculator tells you what a bridge should cost. A broker tells you which lender will actually do the deal at that cost and on what terms. The gap between indicative rates and the rate a borrower can secure varies by lender, exit strategy, security and timing. On larger or more complex cases the broker route consistently produces tighter pricing than direct application, because lenders have private rate tiers for introduced business that they do not advertise.
Can I save or export the calculator result?
Yes. The "print / export results" button generates a printable version of the full breakdown including the month-by-month balance and early redemption figures. The "copy results to clipboard" button copies a plain-text summary you can paste into an email or spreadsheet. No data is sent to FD Commercial or stored anywhere unless you contact us directly.