Bridging Loan Calculator UK
Work out the full cost of a bridging loan — monthly interest, rolled up or retained, plus the arrangement fee — and see exactly what you would repay at exit.
Last updated 2 July 2026 · Written and reviewed by Mustafa Bilgic
Bridging loan cost calculator
Rolled-up or retained interest, arrangement fee included.
Estimate only — figures use the latest published UK rates. Always confirm on GOV.UK.
What is a bridging loan for?
A bridging loan is short-term secured borrowing designed to cover a gap of a few months — most commonly a broken property chain (your purchase is ready but your sale has fallen through), an auction purchase that must complete within 28 days, or a refurbishment that a normal mortgage lender will not fund until the property is habitable. Unlike a mortgage, interest is quoted and charged per month, not per year, and the whole loan is repaid in one lump at the end — the "exit". Terms usually run up to 12–24 months. If the loan is secured on your own home it is regulated; bridging against a pure investment property generally is not.
Borrowing £200,000 for 9 months at 0.85% a month with interest rolled up costs about £15,831 in interest, plus a 2% arrangement fee of £4,000 — a total cost of borrowing of roughly £19,831, with about £215,831 to repay at exit.
Rolled-up vs retained interest
Because a bridge is designed for people who are cash-poor until a sale completes, most lenders do not ask for monthly payments. Instead you choose how the interest is handled. With rolled-up interest, the interest is added to the balance each month and compounds: £200,000 at 0.85% a month becomes about £215,831 after nine months, so the interest bill is £15,831. With retained interest, the lender calculates simple interest for the full term — £200,000 × 0.85% × 9 = £15,300 — and deducts it from the advance on day one, so you receive less up front but repay only the original £200,000 at exit. Retained looks slightly cheaper on paper, but you are paying for the whole term in advance; rolled-up interest usually only accrues for the months you actually use.
Typical bridging loan pricing in 2026
Rates are driven mainly by loan-to-value (LTV) — how much you borrow against the property's value. The keenest pricing is reserved for low-LTV deals below 60%.
| Loan profile | Typical monthly rate | Monthly interest on £200,000 |
|---|---|---|
| Most competitive, below 60% LTV | ≈0.45%–0.6% | £900–£1,200 |
| Mainstream deals, mid-2026 | 0.65%–0.95% | £1,300–£1,900 |
| Full market range | 0.55%–1.5% | £1,100–£3,000 |
A monthly rate hides how expensive bridging is in annual terms: 0.85% a month is a nominal 10.2% a year before fees, several times a typical mortgage rate. That is fine for three to nine months of genuine need — it is a poor substitute for long-term borrowing, so if you need years rather than months, compare a personal loan or a remortgage instead.
Open vs closed bridges — and why the exit matters
A closed bridge has a fixed, evidenced repayment date — say, exchanged contracts on your sale — and is usually cheaper. An open bridge has no fixed exit date and costs more because the lender carries more risk. Either way, no reputable lender will advance funds without a credible exit strategy: normally the sale of a property or refinancing onto a standard mortgage. Before committing, sanity-check the refinance route with our mortgage affordability calculator — if a mainstream lender would not take the loan on at exit, the bridge can trap you at penalty rates.
Fees to watch beyond the headline rate
The arrangement fee is typically around 2% of the loan — £4,000 on £200,000 — and is usually added to the balance. On top of that, expect a valuation fee, legal fees (often for the lender's solicitor as well as your own) and, with some lenders, an exit fee when you repay. If you are bridging to buy, remember the purchase itself also triggers Stamp Duty Land Tax — our stamp duty calculator shows what that adds. Always compare the total cost of borrowing — interest plus all fees — rather than the monthly rate alone, which is exactly what this calculator adds up.
Frequently asked questions
How much does a bridging loan cost per month?
Bridging interest is charged monthly rather than annually. In 2026 rates typically range from 0.55% to 1.5% per month, with most mainstream deals between about 0.65% and 0.95%. On a £200,000 loan at 0.85% per month, the interest is £1,700 a month.
What is the difference between rolled-up and retained interest?
With rolled-up interest nothing is paid monthly — the interest compounds each month and is repaid in one go at exit. With retained interest the lender deducts the expected interest from the advance up front, so you receive less on day one but repay only the original loan at exit.
Are bridging loans regulated?
A bridging loan is regulated when it is secured on your own home. Bridging against a property that is purely an investment is generally unregulated, which means fewer consumer protections — always check which type you are being offered before you sign.
How long does a bridging loan last?
Terms usually run up to 12 to 24 months. With rolled-up interest you are normally only charged for the months the loan actually runs, so repaying early through a quick sale or refinance cuts the total cost.
What counts as an exit strategy?
Your exit is how the loan will be repaid at the end of the term — most commonly the sale of a property or refinancing onto a standard mortgage. Lenders will not offer a bridge without a credible exit, and a closed bridge with a fixed exit date is usually cheaper than an open one.