Tools · Bridging
Bridging cost calculator
See how the rate, term, fees and interest treatment change the gross loan you need, the money you actually receive and the total cost.
Illustration
- Gross loan
- £854,214
- Net release on day one
- £750,000
- Arrangement fee
- £17,084
- Retained interest12 months
- £87,130
- Total cost of borrowingFees plus interest
- £104,214
- Amount to repay at the end
- £854,214
Simplified illustration using simple monthly interest on the gross loan. Lenders differ — some charge interest daily or compounded, and valuation, legal and broker fees are not included. Indicative, subject to lender approval.
How to read the results
Gross loan is the facility the lender advances and charges interest on. Net release is what reaches you on day one, after the arrangement fee and — if interest is retained — the interest for the full term have been deducted.
With retained interest there is nothing to pay monthly, but the gross loan must be larger to deliver the same net amount. With serviced interest you pay interest each month, so more of the loan reaches you, but you need the cash flow to cover the payments.
Lenders cap the gross loan as a percentage of the property value, so the interest treatment can determine how much you can actually borrow. Valuation, legal and broker fees are not included here.