Bridging loans are priced by the month, not the year. Enter the amount, the monthly rate and the term to see the rolled-up interest, fees and the total you'll repay when the bridge is redeemed.
Amount · monthly rate · term
A bridging loan is short-term property finance, typically used to buy before you sell, break a chain, fund a refurbishment or buy at auction. Unlike a mortgage, the interest is quoted as a monthly rate — often 0.5% to 1.5% a month — and is usually "rolled up", meaning you pay nothing each month and settle the lot when the loan is redeemed.
| Loan | Monthly rate | 9-month interest |
|---|---|---|
| £150,000 | 0.85% | £11,475 |
| £250,000 | 0.75% | £16,875 |
| £100,000 | 1.00% | £9,000 |
Headline rates hide the real cost. Most lenders add an arrangement fee of around 2%, plus valuation, legal and sometimes an exit fee. Roll-up interest also compounds the longer you hold the loan, so an exit strategy — usually a sale or a remortgage — is essential. Our calculator shows the interest and arrangement fee; budget separately for the rest.
Lenders want to see how you'll repay. Common exits are selling the property, refinancing onto a standard mortgage, or — for landlords — moving onto a buy-to-let mortgage. If you're buying first, check affordability with the mortgage affordability calculator.
Interest is a monthly rate (often 0.5%–1.5%) on the loan, usually rolled up and repaid in full when the loan is redeemed.
On £150,000 at 0.85%/month for 9 months, interest is about £11,475 plus a ~2% (£3,000) fee — roughly £14,475 before other costs.
Usually 1–18 months (sometimes up to 36). Shorter is cheaper because rolled-up interest grows each month — and a clear exit is required.
Typically a ~2% arrangement fee plus valuation, legal and sometimes exit fees — always compare total cost, not just the monthly rate.
