Bridging Loan Calculator
Use our free calculator to estimate the costs of your auction bridging loan. Enter your property value, loan amount, interest rate, and term to see a clear breakdown of monthly interest, total cost of borrowing, arrangement fees, and LTV ratio.
Enter Your Details
The purchase price or current market value of the property
The bridging loan amount you need to borrow
Typical rates range from 0.5% to 1.5% per month
Typical bridging loan terms are 1 to 18 months
Estimated Costs
Monthly Interest Cost
£1,575.00
Total Interest (12 months)
£18,900.00
Arrangement Fee (2%)
£4,200.00
Total Cost of Borrowing
£23,100.00
Loan-to-Value (LTV)
70.0%
Within acceptable range
Disclaimer: This calculator provides indicative estimates only and does not constitute a formal quotation or financial advice. Actual costs will depend on the specific lender, property, and your individual circumstances. Additional costs such as valuation fees, legal fees, and broker fees are not included in this calculation. For an accurate quote, please request a personalised quotation.
Repay early and save
If you repay after 3 months instead of 12, your total interest would be just £4,725.00 — saving you £14,175.00 in interest. Most of our lender partners charge no early repayment penalties.
Understanding Your Calculator Results
The calculator provides an indicative estimate based on the values you enter. Here is what each result means and how to interpret it when planning your auction bridging finance.
Monthly Interest Cost
This is the interest charged each month on your bridging loan, calculated by multiplying your loan amount by the monthly interest rate. If you choose rolled-up interest (the most common option for auction bridging loans), you will not pay this monthly — it accumulates and is paid when you repay the loan. If you choose serviced interest, this is the amount you will pay each month during the loan term.
Total Interest Over the Term
The total interest cost if you hold the bridging loan for the full term. This is simply the monthly interest cost multiplied by the number of months. In practice, many auction bridging loan borrowers repay their loan earlier than the full term (for example, refinancing to a buy-to-let mortgage after 3 to 6 months), which reduces the total interest paid. Always choose a lender with no or minimal early repayment charges to give yourself flexibility.
Arrangement Fee
The arrangement fee is typically 2% of the gross loan amount, charged by the lender for setting up the bridging loan. This fee can usually be added to the loan (deducted from the net advance) or paid separately. The calculator uses 2% as the standard rate, which is typical for auction bridging loans, although some lenders charge between 1% and 2% depending on the loan size and LTV.
Total Cost of Borrowing
This is the sum of the total interest and the arrangement fee. It represents the core cost of the bridging loan itself but does not include ancillary costs such as valuation fees (typically £350 to £1,500), legal fees (lender's and your own solicitor), or any broker fees. For a complete cost picture, see our Costs and Fees guide.
Loan-to-Value (LTV) Ratio
The LTV ratio is your loan amount expressed as a percentage of the property value. Most bridging lenders will offer up to 70% to 75% LTV. A lower LTV typically results in a better (lower) interest rate because the lender's risk is reduced. If the calculator shows an LTV above 75%, you may need to increase your deposit or reduce the loan amount to meet lender requirements.
Typical Auction Bridging Loan Rates in 2026
Bridging loan rates vary depending on several factors. The table below shows indicative monthly interest rates for different LTV bands, based on current market conditions for standard residential auction purchases across the United Kingdom.
| LTV Band | Indicative Monthly Rate | Equivalent Annual Rate |
|---|---|---|
| Up to 50% LTV | 0.49% - 0.65% | 5.9% - 7.8% |
| 50% - 60% LTV | 0.55% - 0.75% | 6.6% - 9.0% |
| 60% - 70% LTV | 0.65% - 0.95% | 7.8% - 11.4% |
| 70% - 75% LTV | 0.85% - 1.25% | 10.2% - 15.0% |
| 75%+ LTV | 1.10% - 1.50% | 13.2% - 18.0% |
Important Disclaimer
The rates shown above are indicative and for illustration purposes only. Actual rates depend on the specific property, borrower profile, exit strategy, and lender. The calculator results are estimates and should not be relied upon as a formal quotation. For an accurate, personalised quote based on your specific circumstances, please contact us or use the quick quote form below.
Factors That Affect Your Bridging Loan Rate
Understanding what drives bridging loan pricing helps you position your application for the best possible rate. Matt Lenzie identifies the key factors that lenders consider when setting the monthly interest rate for auction bridging loans:
Loan-to-Value Ratio
The single biggest factor affecting your rate. Lower LTV means lower risk for the lender, which translates to a lower interest rate. Borrowing 50% of the property value will attract a significantly better rate than borrowing 75%.
Property Type and Condition
Standard residential properties in good condition attract the best rates. Properties requiring significant refurbishment, commercial properties, HMOs, or properties of non-standard construction may attract higher rates due to perceived risk.
Exit Strategy Strength
A well-documented, credible exit strategy gives the lender confidence in repayment. Having a mortgage agreement in principle for your refinancing exit, or evidence of an existing property sale, can result in better rate offers.
Borrower Experience
Experienced property investors with a track record of successful bridging loan projects may receive preferential rates. First-time borrowers can still access competitive finance but may pay a modest premium.
Credit History
While bridging lenders are more flexible than mortgage lenders on credit history, a clean credit profile will generally attract better rates. Significant adverse credit issues may result in higher rates or additional security requirements.
Loan Term and Size
Some lenders offer better rates for larger loan amounts or shorter terms. Lenders may also offer competitive introductory rates for loans expected to be repaid within the first few months.
Matt Lenzie on Getting the Best Rate
"After 25 years in financial services, I know that the headline rate is only part of the picture. The true cost of a bridging loan depends on how long you hold it, the arrangement fee, whether there are early repayment charges, and all the ancillary costs. I always advise clients to look at the total cost of borrowing rather than fixating on the monthly rate. That is where a specialist broker like us adds genuine value — we calculate the real cost across different lenders so you can make an informed decision."
Matt Lenzie, Founder & Principal Broker
Ready for an Accurate, Personalised Quote?
The calculator provides estimates. For a precise quote tailored to your property, loan amount, and circumstances, speak to our team directly.