Question 1

What is bridging finance?

Accepted Answer

Bridging finance is a short-term loan, usually secured against property, used to bridge a gap in funding — for example, when buying a new property before selling an existing one or refurbishing a property prior to refinancing.

Question 2

How is bridging loan interest calculated?

Accepted Answer

Bridging loan interest is typically charged monthly as a percentage of the outstanding loan. It can be paid monthly (serviced), rolled up and added to the loan, or retained from the loan advance.

Question 3

What fees are charged on bridging loans?

Accepted Answer

Common fees include an arrangement fee (often 1–2% of the loan), an exit fee, valuation fees, legal fees and broker fees. These can add significantly to the overall cost of borrowing.

Question 4

Is bridging finance expensive?

Accepted Answer

Bridging finance is more expensive than standard mortgages because it is short term and higher risk. Monthly interest rates typically range from around 0.5% to 1.5% depending on the lender, loan-to-value and borrower profile.

Question 5

Is this a bridging loan quote?

Accepted Answer

No. This calculator provides estimates only and is not a regulated quote or offer of finance. Actual rates, fees and terms vary by lender and individual circumstances.