Bridging Loan Calculator
Use our bridging loan calculator below to instantly see how much your loan would cost.
Most regulated bridging loans will offer a maximum LTV of 75%, however unregulated bridging loans can go a lot higher than this, with 80% LTV, 90% LTV and 100% LTV potentially available.
How to Use Our Bridging Loan Calculator
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Select your loan amount – choose the total funds you may need for inheritance tax, legal fees, or other probate-related costs.
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Choose the loan term – pick how long you plan to hold the loan, usually until the property is sold or probate is completed.
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Enter the monthly interest rate – this typically ranges from 0.52% to 2% depending on the lender and your loan-to-value ratio.
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Include any additional fees – the calculator will account for arrangement fees, legal costs, valuation fees, and broker fees automatically.
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View the cost breakdown – see monthly interest, total interest, and the total cost of the loan in one clear summary.
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Compare different scenarios – adjust loan amounts, terms, or interest rates to see how your total costs may change.
Bridging Loan Calculator
Calculate your total costs
Cost Breakdown
Our Bridging Lenders
Key Features
- Borrow £50,000 – £25 million
- Loan Term: up to 24 months
- Loan-To-Value: up to 75% (regulated) and 80% (non-regulated)
- Rates from 0.44% per month
- All credit scores considered
What Are the Typical Interest Rates for Bridging Loans?
Bridging loan interest rates in the UK typically range from 0.52% to 2% per month, which translates to annual rates of approximately 6% to 24%. Current market rates start from as low as 0.52% per month for the most competitive deals, with the average rate sitting at around 0.76% per month in 2025.
Several factors influence the rate you’ll receive:
- Loan-to-Value (LTV) ratio – Low LTV deals around 50% attract the best rates, whilst rates increase significantly at 75% LTV
- Property type and location – Residential properties in prime locations typically secure better rates
- Exit strategy clarity – Having a clear repayment plan reduces lender risk
- Borrower experience – Experienced property investors often qualify for preferential rates
- Deal complexity – More complex commercial deals may attract rates of 1-2% per month
Speak to Octagon Capital on 0333 414 1491 for bridging loans.
What Are the Additional Fees Associated With Bridging Loans?
Bridging loans include arrangement fees (2%), solicitor fees (£3,000-£8,000), valuation fees (£300-£2,500), and broker fees (1-2%) on top of monthly interest.
Arrangement fee – Almost all bridging loans include a 2% arrangement fee, though this can range from 1-2% of the total loan amount. This fee covers the lender’s costs for setting up the loan and can often be added to the loan amount rather than paid upfront.
Solicitor fee – You must cover both your own and the lender’s legal costs, with a minimum expectation of £2,500 + VAT for the lender’s solicitor. Total legal costs typically range from £3,000 to £8,000 depending on the complexity of the transaction and property value.
Valuation fee – Survey costs can range from £265 for a £100,000 property requiring light refurbishment, but can be considerably higher for more complex property valuations. Professional valuation fees typically range from £300 to £2,000+ depending on property value and complexity.
Additional potential costs include:
- Broker fees – Usually 1-2% of the loan amount when using a broker
- Exit fees – Some lenders charge around 1% when the loan is repaid early
Do Bridging Loans Come With Early Exit Fees?
No, most modern bridging loans do not charge early exit fees, as flexibility is a key feature of this finance type. Many competitive bridging loan products specifically advertise “no exit fee” arrangements.
However, some lenders may charge exit fees, particularly:
- Closed bridging loans with fixed end dates may include penalty charges for late repayment
- Standard exit fees of around 1% when the charge is removed from the property
- Administration fees for processing early settlement
Always check the loan terms carefully and ask your lender or broker about any potential exit charges before proceeding.
Try Our Bridging Loan Calculator
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Bridging Loan Calculations Snapshot
| Loan Amount | Duration (Months) | Interest Rate | Total | Arrangement Fee (2%) | Broker Fee (2%) | Total Interest | Total Repayable |
| 100000 | 12 | 1.00% | 1000 | 2000 | 2000 | 12000 | 116000 |
| 200000 | 12 | 1.00% | 2000 | 4000 | 4000 | 24000 | 232000 |
| 300000 | 12 | 1.00% | 3000 | 6000 | 6000 | 36000 | 348000 |
| 400000 | 12 | 1.00% | 4000 | 8000 | 8000 | 48000 | 464000 |
| 500000 | 12 | 1.00% | 5000 | 10000 | 10000 | 60000 | 580000 |
How Can I Get a Lower Rate for a Bridging Loan?
Lower your loan-to-value ratio, demonstrate a clear exit strategy, and work with a specialist broker to secure the best bridging loan rates.
Improve your loan-to-value ratio – The single most effective way to reduce rates is to increase your deposit or equity contribution. Rates can be 0.2-0.4% lower per month when moving from 75% to 60% LTV.
Demonstrate a clear exit strategy – Lenders prefer borrowers with concrete repayment plans, whether through property sale, refinancing, or alternative funding sources.
Work with a specialist broker – Using a specialist bridging loan broker is recommended as the easiest way to shop around for the best rates. Brokers have access to exclusive deals and understand which lenders suit specific situations.
Prepare comprehensive documentation – Having all financial documents, property details, and legal information ready speeds up the process and demonstrates professionalism to lenders.
Consider the timing – Market conditions affect rates, so staying informed about interest rate trends can help you time your application optimally.
Build relationships with multiple lenders – Experienced property investors often develop ongoing relationships with bridging finance specialists, leading to preferential rates over time.
FAQs
Octagon Capital are a broker based in London. We’re authorised by the FCA (Financial Conduct Authority) and have partnered with award-winning SPF Short Term Finance.
SPF Short Term Finance process all enquiries, ensuring customers receive a quality service.
There are various different ways you can repay a bridging loan, two examples being:
- Make standard monthly repayments
- Roll up the repayments for the end of the loan term
Discuss with your lender to find out what repayment options are available to you.
Bridging loans are only appropriate for certain situations. They are a secured type of loan that can help with temporary cash flow issues.
For example, a property developer looking to refurbish a property or block of flats to sell them at a higher price may consider a bridging loan to help fund this project.
Read our page on bridging loans for more information on how they work and when to use them.
Typically, you can borrow a regulated bridging loan for up to 12 months, and an unregulated bridging loan for up to 24 months.
The precise length of time you’ll be able to borrow for will depend on your circumstances.
Yes, bridging loans are secured loans, meaning they will have to have an asset (usually a property) as security.
For 100% LTV bridging loans, you may need to add an additional asset as security onto the loan, helping to further reassure the lender the loan will be paid back, even if the borrower fails to make repayments.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
A maximum fee of 1% of the loan amount is payable – for example on a mortgage of £100,000 the fee would be £1,000, the exact fee will be dependent on your circumstances. For Bridging Finance where the net loan amount is £150,000 or below, the maximum fee charged is £1,995.
SPF Short Term Finance is a trading style of SPF Private Clients Limited which is authorised and regulated by the Financial Conduct Authority (FCA).