Bridging Loan Calculator

When it comes to securing short-term funding for property purchases, time is often of the essence. At Auction Finance, we understand the importance of swift and accurate decision-making, which is why our Bridging Loan Calculator is designed to provide you with instant and comprehensive insights into your financing needs. Whether you’re a seasoned property investor or a first-time buyer, our tool simplifies the process of calculating your bridging loan requirements.

Bridging Finance Calculator

Loan Parameters

Serviced Interest: You pay interest monthly during the loan term. Principal is repaid at the end.

Loan Amount

£1 £100,000,000

Monthly Interest Rate (%)

0.01% 10.00%

Loan Term (months)

3 months 24 months

Arrangement Fee (%)

0% 5%

Exit Fee (£)

£0 £5,000

Legal & Other Fees (£)

£0 £20,000

Cost Analysis

Monthly Interest Payment £2,500

Total Interest Cost £30,000

Arrangement Fee £5,000

Exit Fee £1,500

Legal & Other Fees £2,500

Total Cost of Finance
£39,000

Rolled Up Interest: Your loan balance will grow to £289,000 by the end of the term as interest is added monthly.

Effective Annual Rate (APR) 15.2%

Cost as % of Loan 15.6%

Final Balance to Repay £289,000

Your Bridging Finance Summary

Based on your loan parameters, borrowing £250,000 over 12 months at 1.0% monthly interest with serviced interest payments will cost you a total of £39,000 in interest and fees. This represents 15.6% of your loan amount, with an effective annual rate of 15.2%.

£2,500

Monthly Payment

£82

Daily Interest Cost

15.2%

Effective Annual Rate

Key Considerations & Recommendations

Serviced interest keeps your final repayment predictable and reduces total interest costs
Ensure you have adequate monthly cash flow to service the interest payments
This bridging loan has a competitive rate structure for the current market
Consider negotiating the arrangement fee as this represents a significant upfront cost
Plan your exit strategy carefully to avoid extending the loan term unnecessarily
Shop around with multiple lenders as rates and fees can vary significantly

Important: This calculator provides estimates based on the parameters you've set. Actual rates, fees, and terms may vary based on your creditworthiness, property type, loan-to-value ratio, and lender policies. Always consult with a qualified mortgage advisor or broker before making financial decisions. Bridging finance is a short-term solution and should not be used as a long-term financing option.

Bridging Loan Calculator

What is a Bridging Loan?

A bridging loan is a short-term financial solution used to bridge the gap between purchasing a new property and selling an existing one. These loans are particularly useful for auction purchases, renovation projects, or instances where traditional financing may not be an immediate option.

How Are Bridging Loans Calculated?

Bridging loans are typically calculated based on a combination of factors:

Loan Amount Required: This is the total amount you need to borrow.
Property Value: The current value of the property you are purchasing, which often determines the loan-to-value (LTV) ratio.
Loan Term: The duration for which you need the loan, typically between 1 and 12 months.
Interest Rate: The monthly or annual interest rate charged by the lender.
Additional Costs: These include arrangement fees, valuation fees, and legal charges.

Our Bridging Loan Cost Calculator takes all these factors into account to provide you with a clear estimate of your overall costs and monthly repayments.

How to Calculate a Bridging Loan?

Understanding how to calculate a bridging loan manually can give you greater control over your financial planning. Here’s a simple breakdown:

Determine the loan amount required.
Multiply the loan amount by the interest rate to calculate monthly interest costs.
Add everything together to find the total loan repayment amount.Add any additional fees such as arrangement and valuation fees.
Multiply the monthly interest by the number of months in the loan term.
Add everything together to find the total loan repayment amount.

Why Use Our Bridging Loan Calculator?

At Auction Finance, we prioritise transparency and simplicity. Our Bridging Loan Calculator is designed to give you:

Key Benefits of Bridging Loans

Why Choose Auction Finance for Your Bridging Loan Needs?

With years of experience in the industry, Auction Finance is your trusted partner for bridging loans. Our team is committed to providing personalised solutions that align with your goals. By using our Bridging Loan Cost Calculator, you gain the clarity and confidence needed to make informed decisions.

Start Calculating Today

Don’t let financing complexities stand in the way of your property ambitions. With our Bridge Loan Calculator, you can take the first step toward securing the funding you need. Simply enter your details, and let our tool handle the rest.

Whether you’re looking to calculate a bridging loan for a residential property, a commercial investment, or a refurbishment project, Auction Finance is here to guide you every step of the way.

Frequently Asked Questions

Q 1. What information do I need to use the Bridging Loan Calculator?

Ans: To use our calculator effectively, you’ll need to input the loan amount, property value, loan term, and estimated interest rate

Q 2. Can the calculator help me compare lenders?

Ans: Yes, our tool allows you to explore various scenarios by adjusting the variables, helping you identify the most cost-effective option.

Q 3. Is the Bridging Loan Calculator accurate?

Ans: While our calculator provides highly accurate estimates, we recommend consulting with our experts for a detailed assessment tailored to your unique circumstances.

Bridging Loan Calculator

Bridging Finance Calculator

Loan Parameters

Cost Analysis

Your Bridging Finance Summary

Key Considerations & Recommendations