Bridging loan calculator
Whether you need a loan for auction purchases, below market value investments, property renovations or ground-up development finance, our team can help.
Monthly payments for bridging loans can vary greatly.
If you know your interest rate you can use our calculator below to calculate your monthly payments.
If you don’t know what rates you would have access to, speak to a member of our team today.
Calculate monthly bridging loan payments now
Not sure what interest rate to use? Contact our team to see what rates you could be eligible for today.
What is a bridging loan calculator?
A bridging loan calculator is a tool used to figure out costs associated with a bridging loan.
It shows an illustration of how much interest you will pay. The figures from our calculator are not conclusive in isolation, as there are other costs associated with bridging loans. For a full breakdown of costs, please get in touch with our advisors.
How to use the bridging calculator?
To calculate your monthly costs using the bridging calculator, input the amount you wish to borrow, the monthly interest rate and the length of the term.
The calculator will then tell you the monthly interest payments and the total amount payable if you were to be eligible for a product at that rate.
For a full illustration of costs, you can either call an advisor directly on the number at the top of the screen, submit an enquiry or live chat with our team.
What is a typical bridging loan interest rate?
Each bridging loan is assessed on its own risk. This means we don’t have ‘typical’ or ‘illustrative’ rates.
Have a no-obligation call with one of our bridging loan experts for indicative rates. To get a full, individual cost you will need to speak to a bridging advisor and provide them with all the details required.
How much can I borrow with a bridging loan?
The amount that you can borrow will depend on the property value.
Most bridging loan lenders will offer you up to 75% of the maximum loan to value ratio of the property. We work with some lenders who will let you borrow up to 85%.
What are bridging loan rates?
Bridging loan rates are the rate of interest you will need to pay to borrow the money from your lender.
Factors that can affect your bridging loan rate include:
- The property value
- The amount of money that you are hoping to borrow
- The type of property
- Your monthly income
- Your personal finance and credit history
- The length of the loan
- Legal charge type (if it is the 1st or 2nd charge on the property)
- Reason for the loan
How are bridging rates calculated?
Bridging loan rates are calculated on a number of factors. The two most influential are the value of the property that you are securing the loan against, and the amount of money that you wish to borrow.
Each lender will assess your case against their criteria and provide you with a rate, based on the risk that they perceive is associated with your loan. If your loan amount is high, and the case carries high risk, a lender will propose a higher rate to guard against the higher risk associated with the lending.
How much would a bridging loan cost per month?
There are two ways of paying interest on a bridging loan and, therefore, two ways of calculating the costs per month.
- Serviced payments
- Rolled up interest
Serviced payment calculations on a bridging loan
This option gives you the maximum borrowing on day one. Monthly payments on a serviced bridging loan are calculated based on paying the interest monthly. The capital lump sum must be repaid at the end of the loan.
This method of borrowing suits customers who will have a consistent, regular cash-flow throughout the lifetime of the loan and will be able to service monthly payments, without over-extending themselves.
Calculating rolled up payments on bridging finance
Taking out a bridging loan with rolled up payments means you do not repay interest during the lifetime of the loan. Instead, interest owed on a rolled up bridging loan is calculated at the time of application and charged at the redemption of the loan (not monthly). It is important to understand that, when calculating costs on a bridging loan with rolled up interest, the total borrowing must be within the lenders loan to value restrictions - e.g. to calculate the amount you can borrow, you must include the amount of borrowing plus the rolled interest owed, which in total can't go over the maximum loan to value.
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