Bridging finance · indicative figures · checked October 2026
Bridging loan calculator
What a bridge costs you, all in.
Choose your situation and enter three figures. You’ll see the total cost of the loan: the interest, each fee, and what you repay at the end. These are indicative figures, not an offer; what you’re offered depends on your circumstances.
The hammer has fallen, or is about to.
The price you expect to pay.
What has to reach you on completion day.
Many auctions require completion within about 28 days.
Assumes retained interest, 6 months, 0.81% a month and a 2% arrangement fee. Change the interest, term and fees
The total cost of your bridge
27,932 pounds
to have £325,000 on completion day, for 6 months, with the interest retained.
A month, all in
£4,655
total cost ÷ months
Gross loan
£348,937
what you repay at the end
Loan to value
69.8%
gross, of the price
- Interest£16,958
- Arrangement fee£6,979
- Valuation£1,000
- Legal costs£2,500
- Our fee£495
Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
What this means for you
You’d borrow £348,937 so that £325,000 reaches you on completion day: the lender holds back £16,958 of interest and adds the £6,979 arrangement fee to the loan. Nothing is due month to month. When you sell or refinance, you repay £348,937.
Along the way you pay about £3,995 yourself: the valuation, the legal costs and our fee.
Many auctions require completion within about 28 days, and a typical bridge takes 4–6 weeks. Speak to us before you bid.
How we calculate this
How are bridging loans calculated?
Show the working
- Gross loan
- Retained: the amount you need ÷ (1 − monthly rate × months − arrangement fee). Rolled up or serviced: the amount you need ÷ (1 − arrangement fee).
- Interest
- Charged on the gross loan. Retained and serviced: gross × monthly rate × months. Rolled up: added each month, so it is charged interest too.
- Fees
- Arrangement and exit fees as a share of the gross loan; valuation and legal costs as entered; our fee of £495.
- Not included
- Stamp duty, auction fees, the broker fee of up to 1% in some complex cases unless you add it, any refund of retained interest, and extension or default charges.
Market average: Bridging Trends, Q2 2026, as reported by IFA Magazine, checked October 2026. Fee ranges and the rate band: the lenders we work with, checked August 2026. A lender’s illustration is the figure to rely on.
I · The whole cost
How much does a bridging loan cost?
In this example, £27,932 in total: £16,958 of interest and £10,974 of fees, to have £325,000 for six months.
Why it costs what it does
A bridging loan’s cost has two parts. Interest is quoted as a monthly rate rather than an annual one, and runs for the term. The fees are charged once: the lender’s arrangement fee, a valuation, legal costs, sometimes an exit fee, and our fee.
Because the term is short, the fees are a larger share of the total than they would be on a mortgage, which is why we compare the total cost over the term rather than any headline figure.
Fees are 39% of the total on this bridge, interest 61%.
The market, for context · Q2 2026
0.81%
average monthly rate
46 days
average completion
12 months
average term
55%
average loan to value
Across the market, the average monthly interest rate was 0.81% in Q2 2026, according to Bridging Trends (as reported by IFA Magazine, checked October 2026). The average completion took 46 days, the average term was 12 months, and the average loan to value was 55%. What you’re offered depends on your circumstances.
Your figures, line by line
| Reaches you on completion day | £325,000 |
| Gross loan | £348,937 |
| Interest, retained | £16,958 |
| Arrangement fee (2%) | £6,979 |
| Valuation | £1,000 |
| Legal costs | £2,500 |
| Our fee | £495 |
| Total cost of the bridge | £27,932 |
| You repay at the end | £348,937 |
| Monthly payments | None |
II · The interest
How is interest charged on a bridging loan?
Three ways — retained, rolled up, or serviced — and they change what you hand over on day one.
Which is available depends on the lender and the case. Each card shows what this bridge would cost with that kind of interest.
What retained, rolled up and serviced mean
- Retained
- The lender holds back the interest for the whole term out of the loan at the outset, so you receive less than the gross loan.
- Rolled up
- Nothing is paid during the term; interest is added to the balance each month, so the debt grows and the redemption figure is larger than the amount borrowed.
- Serviced
- Paid monthly like a mortgage, so the balance does not grow — but you need the income to cover it and the lender will want to see it.
Typically 1 to 18 months. Bridging is designed to be replaced, not kept.
Indicative range at this loan to value: 0.75%–1.00% a month, from the lenders we work with, checked August 2026. The mark is the Q2 2026 market average. What you’re offered depends on your circumstances.
0.81% a month is 9.72% a year before compounding.
III · The fees
What fees come with a bridging loan?
Usually an arrangement fee, a valuation, legal costs and sometimes an exit fee, on top of the interest, plus our fee.
Added to the loan. Typically around 2% (indicative, from the lenders we work with, checked October 2026).
Some lenders charge one at repayment. Often nil.
Indicative £500–£1,500, checked August 2026; it depends on the property.
The lender’s and yours. Indicative £1,500–£3,500 together, checked August 2026.
How our fee is charged
Our standard fee is £495, payable when your application is submitted. In some more complex cases, an additional broker fee of up to 1% of the loan may apply. The first conversation is always free, and we always confirm your total fee in writing before any work starts.
We are also paid a procuration fee by the lender if your case completes, and we will tell you what it is before you proceed.
IV · Month by month
What are the monthly repayments on a bridging loan?
With retained interest there’s nothing to pay month to month: the interest is held back at the start, and you repay £348,937 when you sell or refinance.
If the exit runs late
If the exit is late, the loan does not simply continue on the same terms: extending costs money, and going past the term without an agreed extension puts you in default, which carries higher charges.
Plate 04 — The Span
The same figures as a table
| Month | Interest that month | Interest so far | Paid that month |
|---|---|---|---|
| 1 | £2,826 | £2,826 | £0 |
| 2 | £2,826 | £5,653 | £0 |
| 3 | £2,826 | £8,479 | £0 |
| 4 | £2,826 | £11,306 | £0 |
| 5 | £2,826 | £14,132 | £0 |
| 6 | £2,826 | £16,958 | £0 |
| 7 (late) | £2,826 | £19,785 | £0 |
| 8 (late) | £2,826 | £22,611 | £0 |
| 9 (late) | £2,826 | £25,438 | £0 |
V · The twenty-eight days
How long does a bridging loan take to complete?
The market average: 46 days
Across the market, the average bridging completion was 46 days in Q2 2026 (Bridging Trends, as reported by IFA Magazine, checked October 2026). Straightforward cases can be quicker; what you’re offered depends on your circumstances.
Auction purchase — what has to fit inside your deadline
Started after the hammer: the stages from our bridging page, drawn across the market average of 46 days. Amber marks a stage that ends after your deadline. An illustration of the sequence, not a forecast for your case.
Tight. Started after the hammer, a typical bridge runs past a 28-day deadline. Start before you bid.
Many auctions require completion within about 28 days, and a typical bridge takes 4–6 weeks. Speak to us before you bid.
VI · Borrowing, and the way out
How much can I borrow with a bridging loan?
Typically £100,000 to £2 million and above, up to around 70–75% of the property’s value.
Gross loan to value, explained
The ceiling is set by the property rather than by your income, because that is what the lender is lending against. Gross LTV on a bridging loan includes the interest and fees added to the loan, divided by the property value.
Loan to value — the gross loan against the property
General positions across the lenders we work with, checked September 2026. Not the terms of any one lender, and not a recommendation.
Will you, or a close family member, live in it?
If it’s secured on an investment or business property, it’s unregulated. Unregulated bridging loans (for investment or business purposes) are not regulated by the Financial Conduct Authority.
How will you repay it?
A new mortgage would need to raise £348,937 to repay the bridge: 69.8% of the £500,000 price. Work out the mortgage with the remortgage calculator
Questions worth thinking through
Questions worth thinking through
For an auction purchase. These aren’t a test of your plan — they’re the things a lender will want answered.
- Can you genuinely complete within the auction deadline (usually 28 days)? A bridge only helps if it can move that fast.
- Is your exit a sale or a refinance onto a term mortgage — and is that exit lender comfortable with the property as it stands?
- Have you had the legal pack reviewed before you bid, not after?
- What’s your ceiling bid once all the bridging costs are included, before the deal stops making sense?
With bridging, affording it is only half the question. The other half is how you get out. Every good bridge is designed backwards from the exit.Nathan Lawes, Director & Mortgage Adviser, Lawes Financial
Bridging loan, auction finance or a quick remortgage?
Compare the three
| Compared on | Bridging loanShort-term, secured on property | Auction finance(a bridging loan for an auction purchase) | Quick remortgageNew mortgage on a property you own |
|---|---|---|---|
| Priced | Monthly rate plus fees, 1–18 months | Same as a bridging loan | Annual rate plus fees, over years |
| Timescale | Average completion 46 days, Q2 2026 (Bridging Trends) | Many auctions require completion within about 28 days. Speak to us before you bid. | Varies by lender; has to be in place before you bid or buy |
| Repaid by | A sale or a refinance | A sale, or a refinance after any works | Monthly payments |
General positions, checked October 2026, and not a recommendation.
VII · Questions
Bridging loan questions
What is a bridging loan?
A bridging loan is short-term finance secured against property, typically used for auction purchases, chain breaks, or refurbishment projects. It bridges the gap until longer-term finance is arranged or the property is sold.
How much does a bridging loan cost?
Bridging loan costs include monthly interest, an arrangement fee, exit fees, and legal and valuation costs. Across the market, the average monthly interest rate was 0.81% in Q2 2026 (Bridging Trends, as reported by IFA Magazine, checked October 2026); what you’re offered depends on your circumstances. The lender’s arrangement fee is typically around 2% of the loan (indicative, from lenders on our panel, checked October 2026). The total cost depends on the loan size, term, interest structure, and lender.
Why is bridging quoted monthly, not annually?
Bridging is quoted as a monthly rate because the loans are short. 0.75% a month is roughly 9% a year before compounding.
What is the difference between retained, rolled up and serviced bridging interest?
Retained interest is held back by the lender out of the loan at the start, so nothing is paid monthly and you receive less than the gross loan. Rolled-up interest is added to the balance each month and repaid in full at the end. Serviced interest is paid monthly, so the balance stays the same, and the lender will want to see the income to cover it.
Is bridging interest charged on the gross or the net loan?
On the gross loan. The net loan is what reaches you after retained interest and fees are taken off, and it is the figure your budget depends on; the gross loan is the full amount before anything is deducted, and the interest is charged on it.
How quickly can a bridging loan complete?
Across the market, the average bridging completion was 46 days in Q2 2026 (Bridging Trends, as reported by IFA Magazine, checked October 2026). Straightforward cases can be quicker; what you’re offered depends on your circumstances.
Can I use a bridging loan for an auction purchase?
Yes, it’s a common use — but speak to us before you bid, not after. Many auctions require completion within about 28 days, and a typical bridge takes 4–6 weeks.
What is gross LTV on a bridging loan?
Gross LTV (loan-to-value) on a bridging loan includes the interest and fees added to the loan, divided by the property value. Lenders typically go up to around 70–75% of the property’s value.
Is a bridging loan regulated?
If the loan is secured on a property that you or a close family member live in, or will live in, it's usually regulated bridging. If it's secured on an investment or business property, it's unregulated. Unregulated bridging loans (for investment or business purposes) are not regulated by the Financial Conduct Authority.
What is a bridging exit strategy?
It’s how you’ll repay the loan at the end of the term — usually a sale or a refinance onto a longer-term mortgage. Lenders assess cost, speed and exit as one picture, so a sound, realistic exit is central to whether a bridge makes sense at all.
What happens if my exit takes longer than the term?
The loan does not simply continue on the same terms: extending costs money, and going past the term without an agreed extension puts you in default, which carries higher charges. Build in more time than you think you need, and a buffer on any price you are relying on.
Is this bridging advice?
No. This calculator is illustrative only and not an assessment of your specific case. It’s built to help you think the decision through before talking it over with a broker.
Read and plan further
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Talk your figures through with Nathan
Nathan handles your case personally from first conversation to completion. Your figures go with your booking, so the call starts from your numbers: the exit, the timescale and the total cost.
No credit check · no obligation
What Nathan will see with your booking
What Nathan will see with your booking
From the bridging calculator Auction purchase · price £500,000 · 28 days to complete Borrowing £325,000 for 6 months 0.81% a month · retained interest · 2% arrangement fee Total cost £27,932 · repay £348,937 · LTV 69.8% Exit: refinancing · Not lived in (unregulated)
You can edit or delete this on the booking page before you send it.
Our standard fee is £495, payable when your application is submitted. In some more complex cases, an additional broker fee of up to 1% of the loan may apply. The first conversation is always free, and we always confirm your total fee in writing before any work starts.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Unregulated bridging loans (for investment or business purposes) are not regulated by the Financial Conduct Authority.