Maximum Loan
For residential property, the calculator applies a maximum LTV of 75%. This means:
Maximum Loan = Property Value X 75%The loan amount you enter must not exceed the maximum available based on the property value.
BRIDGING LOAN CALCULATOR
Estimate the Cost of Short-Term Property Finance
Bridging finance can provide short-term funding for a property purchase, refinance or refurbishment project. However, it is important to understand the likely interest and fees before proceeding. Our Bridging Loan Calculator provides an estimate based on the property value, loan amount required (or LTV), the monthly interest rate, the proposed loan term, and your preferred interest payment method. It can help you understand the approximate cost of borrowing and compare different scenarios. The results are estimates only. The actual rate, fees and amount available will depend on the property, loan-to-value ratio, exit strategy, lender criteria and your circumstances.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
Bridging loan details
£
Maximum Loan Amount£25,000,000
Maximum LTV Available75%
Loan details
£
Refurbishment cost must be less than the loan amount.
£
Value after refurbishment must be higher than the estimated current value.
£
Minimum loan amount is £50,000 and must be below the calculated maximum loan amount.
3 months
For residential property in a single building, you have the option to increase and extend borrowing on completion of the work. Would you like to have this option?
Purpose of loan
Interest Rate
Please note: The results generated by this calculator are estimates only. They do not constitute financial advice, a recommendation, a formal quotation, or a loan offer.
About This Calculator
What Is a Bridging Loan Calculator?
A bridging loan calculator provides an initial estimate of the potential cost of short-term property finance. It uses information such as the property value, loan amount, interest rate, loan term, and interest payment method.
The calculator can help you:
Estimate potential borrowing based on the property value and selected LTV
Calculate estimated monthly and total interest
Compare retained and serviced interest options
See how arrangement and administration fees may affect the net funds available
Understand how the loan term can influence the overall cost
Estimate borrowing for eligible refurbishment projects
It can provide an initial guide when considering a property purchase, refinancing, capital raising, or refurbishment project. The results are illustrative and remain subject to lender criteria.
Borrowing Estimate
How Much Could You Borrow?
The maximum loan the calculator will show is based on the property value and the maximum loan-to-value (LTV) for the selected property type.
How It Works
How the Calculator Works
Enter the following information to receive an estimated cost.
Enter the current open market value of the property being used as security.
The calculator accepts values from £100,000 to £50,000,000. The property value is used to calculate both the maximum available loan and the LTV percentage.
Have an overview of
Worked Example
The following example is for illustration only.
Property value£400,000
Loan amount required£300,000
Gross LTV75%
Monthly interest rate0.69%
Loan termSix months
Interest payment methodDeducted (retained)
Arrangement fee2% (minimum £2,000)
Admin fee£135
Monthly interest£300,000 X 0.0069 = £2,070
Total interest over six months£2,070 X 6 = £12,420
Arrangement fee amount£6,000
Net advance with retained interest£281,445
Net advance with serviced interest£293,865
This example excludes valuation, legal, broker, and other potential costs. It assumes simple interest and that the loan is repaid after exactly six months.
Interest
How Is Bridging Interest Calculated?
The calculator uses simple interest, calculated monthly.
For example, a £300,000 loan at 0.69% per month for 6 months gives monthly interest of £2,070 and total interest of £12,420.
Payment Method
How Is Bridging Interest Paid?
The way interest is handled can affect both your monthly cash flow and the amount you receive.
Serviced Interest
You pay interest each month from your own funds. The loan balance remains static, and you receive a higher net advance at completion.
Net Advance = Gross Loan - Arrangement Fee - Admin Fee. Monthly Payment = Gross Loan x (Monthly Rate / 100)Deducted Interest (Retained)
The total interest for the agreed term is calculated at the outset and deducted from the gross loan. You receive a lower net advance but have no monthly interest payments during the term.
Net Advance = Gross Loan - Total Interest - Arrangement Fee - Admin FeeRolled-Up Interest
Interest is added to the loan balance and normally repaid when the loan ends. This can reduce monthly outgoings, but it increases the amount that must eventually be repaid. The calculator may use a simplified interest calculation and may not reflect every lender's method.
Loan-to-Value
Understanding Loan-to-Value
Loan-to-value, or LTV, compares the proposed loan with the property's value.
It is generally calculated as:
Loan amount/Property valueX 100
For example, a £300,000 loan secured against a property valued at £400,000 would represent 75% LTV.
A lender may calculate LTV using the purchase price, current market value or another valuation basis. The lender's formal valuation may also differ from the figure entered into the calculator.
Fees
Understanding Fees
The calculator includes the core fee assumptions used in the estimate.
Arrangement Fee
The calculator assumes an arrangement fee of 2% of the gross loan amount, with a minimum of £2,000.
Arrangement Fee = MAX (Gross Loan x 0.02, £2,000)£300,000 loan: £300,000 x 0.02 = £6,000. £80,000 loan: £1,600, so the £2,000 minimum applies.
Admin Fee
The calculator includes an administration fee. This is typically a fixed amount and is deducted from the net in advance.
Exit Strategy
Your Exit Strategy
Your exit strategy explains how the bridging loan will be repaid.
Common exit strategies include:
- Selling the property.
- Refinancing onto a longer-term mortgage.
- Selling another property or asset.
- Repaying the loan from an identifiable source of funds.
The proposed exit must be realistic and achievable within the agreed term. A planned sale or refinance is not guaranteed.
If repayment is delayed, additional interest and charges may apply. The lender could also take enforcement action against the secured property.
Costs
Costs Not Included in the Calculator
The calculator may estimate interest and an arrangement fee, but bridging finance can involve other costs.
These may include:
- Valuation fees.
- Lender's legal fees.
- Your own solicitor's fees.
- Broker fees.
- Administration and transfer fees.
- Property survey costs.
- Monitoring or drawdown fees.
- Exit fees.
- Extension or default charges.
- Property insurance.
- Applicable property taxes.
Some costs may be payable even if the loan does not complete.
Actual Cost
Why the Actual Cost May Differ
The actual cost and terms of bridging finance may depend on:
- The property's value, type and condition.
- The required loan amount and LTV.
- The purpose of the borrowing.
- The proposed loan term.
- The strength of the exit strategy.
- How interest is charged.
- The applicant's circumstances and experience.
- The lender's fees and calculation method.
A lower monthly interest rate does not always mean a lower overall cost. Fees, minimum interest periods and the net amount released should also be considered.
FAQ's
Frequently Asked Questions
Yes. You can use the calculator without charge or obligation.
Need More Than an Estimate?
Speak to an adviserTalk to Pure Capital about your mortgage options
A Bridging Loan Calculator is a useful starting point, but the interest rate is only one part of the overall cost. The loan structure, fees, property valuation, amount released, borrowing period and exit strategy should all be considered before proceeding. Pure Capital can help you explore bridging finance options and understand how the potential costs may apply to your circumstances.
Your home or property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.