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Bridging Loan Calculator

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 Loan Calculator

Bridging Loan Calculator

Calculate your bridging loan costs and understand the total amount you'll need to repay

Loan Details

£
£0 £5M
£
£0 £10M
months
1 month 24 months
%
0.5% 2.5%

Fees & Charges

% = £5,000
% = £2,500
% = £2,500
£
£
£

Your Loan Summary

Description Amount
Gross Loan Amount (Inc. Fees Added) £250,000
Net Loan Advance (After Fees Deducted) £237,500
Loan-to-Value (LTV) 62.50%
Monthly Interest Payment £1,875
Total Interest (Retained) £11,250
Total Fees £12,500
Total Repayment Amount £273,750

Understanding Your Bridging Loan

  • • Gross Loan Amount: The total loan including fees that are added to the loan
  • • Net Loan Advance: The actual amount you receive after all fees are deducted
  • • Serviced: You pay interest monthly from your own funds
  • • Retained: Interest is paid monthly but deducted from the loan funds
  • • Rolled Up: Interest is added to the loan and paid when you exit
  • • LTV (Loan-to-Value): The loan amount as a percentage of the property value

This calculator provides estimates only. Actual costs may vary based on your specific circumstances.

Please consult with a financial advisor for accurate quotes and professional advice.

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.

They provide quick access to funds, allowing borrowers to move forward with a purchase without waiting for long mortgage approval processes. Bridging loans are typically secured against property assets and are designed to be repaid once a long-term financing solution, such as a mortgage or property sale, is in place.

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:

  • Instant Results: Get a clear picture of your potential costs within seconds.
  • Customised Estimates: Adjust variables such as loan amount, term, and interest rate to suit your specific needs.
  • Comprehensive Breakdown: Understand the total cost of borrowing, including interest and additional fees.
  • 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.

Key Benefits of Bridging Loans

Quick Access to Funds

Ideal for time-sensitive transactions like auction purchases.

Flexible Terms

Customisable to meet your repayment timeline.

Versatility

Suitable for a variety of purposes, from property refurbishment to chain breaks.

0208 143 7779

Frequently Asked Questions

Ans: To use our calculator effectively, you’ll need to input the loan amount, property value, loan term, and estimated interest rate
Ans: Yes, our tool allows you to explore various scenarios by adjusting the variables, helping you identify the most cost-effective option.

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

This depends on your lender’s terms. Many lenders allow overpayments or early repayments, which can reduce the total interest paid.