UK Bridging Loan Calculator (2026)

Start with realistic figures. If your property is worth £400k and you need £200k, LTV is 50% and you'll access the best rates.

Bridging lenders hate unexpected extensions. If you're buying at auction with a 28-day completion and expect to sell within 3 months, pick 6 months for safety — better to exit early than extend late.

Serviced for cashflow-confident borrowers. Retained for short terms with tight monthly budgets. Rolled-up for refurb-flips or uncertain exits.

Standard arrangement is 1.5–2.5% of loan. Some lenders charge an exit fee (£0–£5,000); most do not. Enter exactly what your term sheet says.

Which cost is bridging helping you avoid? Chain break (lost deposit + market drift), auction (losing the 10% hammer deposit), refurb-flip (extended holding), probate (empty property + legal drag).

Green = bridging is cheaper than the alternative. Red = the alternative is cheaper; you probably don't need bridging.

Chain break assumes a 10% deposit lost (capped at £50k), £2,500 wasted survey/legal, £1,500 new-mortgage arrangement, a modest 1.5% price drift over 6 months, and a 1.5% re-listing agent fee. Auction assumes a 3% buyer's premium and £15k opportunity cost. Refurb-flip uses £800/month holding cost and a 2% price-erosion risk. Probate uses £5,000 administration fees and £500/month maintenance. These are UK rental-market and industry averages — your specific deal may vary.

If your exit is "remortgage in 6 months at a better rate" with no offer in principle — you're gambling on rate cuts. If the property needs structural work beyond cosmetic — the bridging lender will cap their valuation. If you're using bridging to bid above market on a chain property — you're paying 15%+ APR for what a second charge or a further advance could cover for 6%.

Monthly rate × 12 gives nominal APR. But bridging lenders compound differently: rolled-up truly compounds (so nominal APR understates the cost), serviced does not compound but adds 100% of fees upfront (so effective APR is higher than nominal). The tool's effective APR includes all fees and annualises over the actual loan term — this is the honest comparison number.

Regulated bridging (residential, main dwelling) sits under MCOB rules — lenders must be FCA-authorised, treat customers fairly, assess affordability, and offer a cancellation right. Unregulated bridging is governed only by the general law of contract. In 2024 the FCA issued guidance tightening exit-strategy scrutiny for regulated bridging; most high-street bridging lenders now require a written, evidenced exit before disbursement.

Use this alongside the Mortgage Reality Check to size the post-bridge mortgage, the Home-Buying Affordability Calculator for the full upfront picture, and the Probate Estate DIY vs Solicitor if your bridging is probate-driven.