How bridging interest works
Bridging loans are priced monthly. Interest can be rolled up (added to the loan and paid at the end), retained (deducted upfront for the term) or serviced (paid monthly).
The exit matters most
Lenders need a clear way to repay, usually a sale or refinance. Allow time for delays: extending a bridge can be expensive.
Frequently asked questions
How much does a bridging loan cost?
Costs include monthly interest, an arrangement fee (often around 2%), valuation and legal fees, and sometimes an exit fee. This calculator shows the total.
How fast can a bridging loan complete?
Often within a few weeks where the valuation and legal work move quickly, which is why bridging is used for auctions and chain breaks.
What's the difference between gross and net loan?
The gross loan includes rolled-up or retained interest and fees; the net loan is the cash actually released to you.
Important: Bridging and development finance are short-term, secured borrowing and can be expensive. You need a clear, realistic exit plan. Loans secured on a home you live in may be FCA-regulated; most others are not. Your property may be repossessed if you do not keep up repayments.