Lendus.

Bridging loan calculator

How much does a bridging loan cost?

Bridging loans are priced monthly, not annually. A £250,000 bridge at 0.85% a month over 12 months costs £2,125 a month in interest. Serviced, that is £25,500 of interest plus a £5,000 arrangement fee — £30,500 in total. Rolled up, where nothing is paid during the term, interest compounds to £26,727 and the total cost is £31,727.

Updated . Lendus is an introducer, not a lender — these figures are indicative and not a quote.

£250,000
12 months
0.85%

Bridging is quoted per month. UK rates typically run 0.55%–1.5% depending on LTV and security.

2%

Usually 1%–2% of the gross loan.

Your estimate

Indicative only. Not a quote and not an offer of finance.

What this calculator assumes

Frequently asked questions

Why are bridging loans quoted per month rather than as an APR?
Because they are short-term facilities, typically 1 to 24 months. Expressing a 12-month bridge as an APR produces a number that looks alarming and compares badly with mortgages that run for decades. The monthly rate is the meaningful figure — but multiply it out before you commit: 0.85% a month is roughly 10.7% a year before fees.
What is the difference between serviced, rolled and retained interest?
Serviced means you pay the interest monthly from your own cash flow, and repay the capital on exit. Rolled-up means interest accrues and compounds, with everything settled at the end — nothing leaves your account during the term. Retained means the lender deducts all the projected interest from the advance up front, so you receive a smaller net sum. Rolled-up costs the most in absolute terms; retained reduces the cash you actually get.
What is a bridging loan exit strategy?
It is your plan for repaying the loan — usually a property sale, a refinance onto a term mortgage, or the receipt of a known lump sum. Lenders underwrite the exit as carefully as the security. Without a credible, evidenced exit, most applications are declined regardless of the loan-to-value.
How quickly can a bridging loan complete?
Specialist bridging lenders can complete in 5 to 14 days where title is clean and a valuation is available. Complex security, unusual titles or incomplete legal packs push that out to 3 to 6 weeks.

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