Bridging Loan Calculator 2026/27

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Bridging Loan Calculator

✓ Verified for 2026/27

Bridging Loan Details

£
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£
Lenders usually limit bridging loans to 70-75% LTV.
% pm
Bridging interest rates are charged per month (pm).
months

Fees & Other Costs

%
%
£
Loan-to-Value (LTV)
0%
equity vs loan ratio
Total Interest Cost
£0
rolled-up
Total Setup Fees
£0
arrangement + broker + legal
Total Amount Repayable
£0
at redemption

Bridging Loan Breakdown

Net Loan Principal £0
Interest Cost £0
Arrangement & Broker Fees £0
Valuation & Legal Costs £0
Total Repayment Cost £0
Principal 0%
Interest 0%
Fees 0%

Month-by-Month Loan Balance Schedule

Detailed monthly statement showing the growth of debt or serviced interest payments.
MonthOpening BalanceInterest AccruedPayment MadeClosing Balance
ℹ️ Bridging finance is a short-term solution. Borrowers must demonstrate a clear exit strategy, such as selling the property or refinancing onto a standard term mortgage, to secure approval from lenders.
🛡️
Verified for Accuracy (2026/27 Tax Year)
Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.
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How We Calculated This

  1. Input variables: Enter the relevant amounts, rates, or percentages in the form.
  2. Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
  3. Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.

Real-World Examples

Standard Scenario

A basic calculation applying standard UK tax bands and allowances.

Calculation runs based on standard HMRC rules.
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With Pension or Deductions

Factoring in a percentage of salary sacrifice or pension contributions.

Deductions are calculated and adjusted accordingly.
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Frequently Asked Questions

What is a bridging loan and when should I use one?

A bridging loan is a specialized, short-term loan designed to cover a temporary financial gap until a permanent funding source becomes available or an asset is sold. Bridging loans are most commonly used in the UK property market to buy a new home before selling your current one (preventing a property chain from collapsing), to purchase run-down properties at auction that do not qualify for standard mortgages, or to fund rapid property renovations before refinancing. Bridging loans are typically arranged for terms between 1 and 12 months, and because they are short-term and high-risk, they carry higher interest rates (usually 0.5% to 1.5% per month) and setup fees than traditional mortgages.

What is the difference between Serviced and Retained Interest?

Lenders structure bridging loan interest payments in two primary ways:

  • Serviced Interest: You pay the interest charges monthly, similar to a standard mortgage. This option is only available if you can prove you have the monthly income to support the payments.
  • Retained or Rolled-Up Interest: You make no monthly payments. Instead, the interest charges are calculated for the agreed term and added to the loan balance upfront or rolled up monthly. The entire loan plus interest is repaid in a single lump sum at the end of the term.

Crucially, lenders require a guaranteed and realistic ‘exit strategy’—such as the confirmed sale of your current property or an approved refinancing agreement onto a standard mortgage—before they will approve a bridging loan.

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