Gross capacity is not the cash you receive
A bridging lender’s LTV limit puts a ceiling on the debt secured against the property. The gross facility can contain retained interest and deducted arrangement fees, so a gross limit is not a promise of that amount in cash. This calculator shows the gross capacity, the net advance and the money left after upfront costs.
Usable cash means the net advance minus separately paid upfront costs and any mortgage being redeemed. Interest paid monthly still needs to be budgeted for: it appears in the monthly payment and total cost, rather than being deducted from day-one cash.
Existing borrowing: second charge or repayment
Choose Stays in place when the existing mortgage remains secured alongside the bridge. Its balance reduces the total debt headroom. Choose Paid off from this loan when the bridge redeems it at completion: the new bridge then funds that payoff, and only the cash left afterwards is available for your next purpose.
The calculator never subtracts the same balance from both the LTV ceiling and the cash advance. It assumes the existing debt stays constant if it remains in place; it does not model mortgage amortisation, changing payoff statements or another property purchase.
Match the LTV basis and interest terms
A gross opening limit includes financed setup fees and retained interest. A redemption limit also includes deferred or compounded interest and the quoted exit fee. The two bases can produce different cash limits. Select the one used by your lender rather than assuming every lender has the same definition.
Retained uses simple interest on the gross opening balance, deducted at the start. Deferred uses simple interest paid at the end. Monthly compound adds interest to the balance each month. Serviced pays simple monthly interest. These are explicit quote models; the words retained or rolled-up alone do not establish a lender’s precise calculation.
Percentage fees can be based on the net advance or gross opening loan. The calculator solves the advance that fits the chosen cap, then shows the interest, fees, monthly payment where applicable and the amount due at the end.
Worked example: UK retained-interest capacity
A property valued at £400,000 with no existing charge and an illustrative 70% gross limit supports £280,000 of gross capacity. For a twelve-month retained-interest quote at 0.85% a month, interest withheld is £28,560. A 2% arrangement fee on the gross loan is £5,600, also deducted.
The net advance is £245,840. After £1,000 of other upfront costs, usable cash is £244,840. Total interest and fees are £35,160, and the loan to repay at the end is £280,000. Retained interest is not charged again at redemption.
The rate, fee and LTV are illustrative assumptions. If the same quote has an exit fee or a different fee basis, enter those terms instead.
What the estimate does not decide
This is a capacity estimate under the terms you enter, not an eligibility decision. The lender still assesses the valuation, security, charge position, credit and exit strategy. It does not estimate an approved LTV from a property type or determine whether a regulated bridging mortgage is suitable.
The model excludes rate changes, daily interest adjustments, minimum-interest periods, extension charges, tax and unentered purchase or selling costs. It assumes one security value, full repayment of the selected mortgage balance where requested and a single drawdown. Fees or payoff costs that use all the capacity produce a clear refusal rather than a negative cash result.
For the cost of a specific amount you need, use the UK bridging finance calculator.
For staged renovation funding and value after works, use the UK refurbishment loan calculator.
Use the right country page
This UK page uses pounds, monthly-rate defaults, retained interest and arrangement fees. The United States link above the inputs opens the separate US bridge borrowing page in dollars with its own annual-rate, points and mortgage examples. Inputs reset; amounts are not silently converted.
Inputs for the bridging loan borrowing power calculator
Property value
Use the lender’s current valuation. Combining several properties into one value does not establish that a lender accepts all of them as security.
Existing mortgage or charge
Enter the outstanding secured balance, then choose whether it remains in place or is fully repaid from the bridge.
What happens to existing debt?
Stays in place subtracts the balance from combined LTV headroom. Paid off funds the mortgage from the new advance; its interest and fees are therefore charged on the larger bridge.
Lender maximum combined LTV
Enter the limit on your quote. This is an assumption you control, not a national lending rule.
LTV limit measured on
Opening uses the gross loan at completion. Redemption also reserves for interest and exit fees due at the end. Ask the lender which basis applies.
Quoted interest rate
Enter the note rate and select its period; do not enter APR as though it were a nominal interest rate.
Rate quoted per
Annual nominal divides by twelve. Annual effective converts to an equivalent monthly rate.
Term
Whole months until repayment. The calculation assumes that the quoted rate stays fixed for this period.
How interest is paid
Retained simple interest is withheld up front. Deferred simple and monthly compound interest are added at redemption. Serviced interest is paid monthly and does not reduce the initial cash.
Arrangement fee
Enter the quoted percentage and choose net or gross as its basis.
Exit fee
A percentage paid on redemption, using the same selected fee basis. It reduces capacity only when the LTV limit is measured at redemption.
Percentage fees based on
Net means the advance after retained interest and deducted fees, before separate costs or any mortgage payoff. Gross means the opening loan balance.
Arrangement fee payment
Deducted fees come out of the gross loan. Separate fees are paid at the start and deducted when showing usable cash.
Other quoted costs
Legal, valuation, broker or closing costs paid at the start. Include each cost once; these are not financed or charged interest here.
CALCULATOR QUESTIONS
UK bridging loan borrowing calculator questions
How much can I borrow on a UK bridging loan?
Start with the lender’s accepted property value times its LTV limit. Debt staying in place reduces that headroom; retained interest, financed fees and any redemption cap can reduce the advance further. Use the usable cash result rather than treating the gross cap as spendable money.
Does usable cash include all interest costs?
Retained interest is already withheld. Serviced interest is paid monthly and remains a future cash-flow requirement. Deferred or compound interest is due at the end and is reserved within capacity only when the cap is measured at redemption. Total cost shows the full quoted interest and fees in every mode.
Should I subtract my existing mortgage twice?
No. If it stays, it reduces combined LTV headroom. If it is paid off by the bridge, the new loan funds it and the payoff is deducted from the net advance. The calculator handles the chosen treatment once.
Are the default LTV and rate lending rules?
No. They are illustrative assumptions. Enter the limits, rate, fee basis and interest calculation in your own lender’s quote.
Can this approve a bridging or bridge loan?
No. It does not assess credit, affordability, property eligibility or the credibility of a sale or refinance exit. Other lender limits may reduce the amount.
What happens when I change country?
The country links open separate regional pages with their own currency, defaults, wording and content. Inputs reset and financial amounts are not converted.