Redrock – specialist providers of bridging finance to UK individuals and businesses

Specialist team have over 60 years’ experience in finding lower interest rate loans on most favourable terms

Bridging Loan Calculator

Let us help you find the right level of funding you need

In any type of property venture, cost control is crucial to ensuring that the effort and risk you take is properly rewarded with the return on investment you make.

You’ve not only got to factor in property-related taxes and material & labour costs though – you’ve also got to factor in the interest payments you need to make on the financing you take out to launch, fund, and complete the project you have in mind.

Alternatively, you may wish to borrow money using the equity in the property you or your company owns as security to repay creditors, invest in new equipment or machinery, or for working capital.

Use our bridging loan calculator for an estimate of the finance interest costs on your next project. Then call Redrock on 020 3780 7610 or click here to get in touch via our contact form.

Redrock’s Bridging Loan Cost Calculator

Use our bridging loan rates calculator to get an instant breakdown of your likely financial costs. Our calculator is designed to make estimating the amount of interest you’re likely to pay on your facility quick and straightforward. When you use it, we’re able to tell you the approximate level of monthly and overall interest you’ll pay on your facility.

Simply enter your details on the form below then press “calculate” and you’ll receive an email with your bridging loan finance options. Your data is stored confidentially to GDPR standards and our service is free with no obligation.

How to use our bridging loan repayment calculator

In order for us to work out the best rate for your mortgage bridging loan, we require the following information:

how much money you want to borrow
over how much time you want to repay the loan
the interest rate
the total value of your property
what the current outstanding mortgage is on your property
your personal details: name, email address and telephone number

What information will I receive?

Bridging loan amount: £250,000.00
Term: 12 months
Monthly interest rate: 0.45%
Total property value: £500,000.00
Total property mortgage balance:    £100,000.00
Monthly interest amount: £1,189.22
Total interest amount over term: £14,270.61
Loan to value: 72.85%

To work out how much interest you will be charged each month, look at the ‘monthly interest amount’. The ‘total interest amount over term’ is the ‘monthly interest amount’ multiplied by the number of months your facility is in place for.

The email you receive is an approximate guide to your bridging loan options. It does not constitute as an offer of a loan. To begin an application for a loan from Redrock, please call us on 020 3780 7610 or click here to contact us online.

Bridging loan FAQs

What is a bridging loan?

A bridging loan is a short-term loan used, in most cases, to help you move from one stage of a property project to another. On other occasions, they’re used to raise money quickly secured against property owned by the borrower.

Bridging loans can be used for:

  • buying a properly quickly, for example at auction
  • purchasing an unhabitable property which will need renovation work
  • funding the renovation work on such a property
  • purchasing a property under market value
  • repossession prevention

If you buy a property at auction, you can use a bridging loan to make sure you have the cash to buy the property within the required 28 days of the fall of the hammer at auction. To pay the bridging loan off, you then arrange further another finance package like a buy-to-let mortgage if the property you’ve bought is intended for rental.

Purchasing an initially uninhabitable property means that you will need both time and money to restore it – you see the potential in it but, in its current state, it may be unmortgageable. Nearly half of all bridging loans taken out are for this reason.

Bridging loans may also be taken out to pay creditors, provide working capital to a company, and to invest in a business opportunity.

Do I need to put any money upfront?

Yes. Much like with a standard mortgage, you will need to offer a deposit upfront for first charge bridging loan. If you use a bridging loan to purchase property you have not previously owned, the lender will take first charge over it.

Usually, lenders offer up to 80% of the finance required for the purchase of the property on bridging loans. On development finance loans, lenders usually offer up to 70% of the cash required – however they can lend up to 100% of the construction and development costs in addition.

Second charge bridging loans which are secured on property you already own allow for a maximum of 80% LTV of the overall debt secured on the property. This means that we take into account any outstanding balances on mortgages or loans secured against that property when calculating how much you can borrow.

If you have additional property that can be offered as security, Redrock may be able to secure 100% of your required funding - this is providing your property has sufficient equity remaining in it and it is subject to necessary checks.

What other fees will I have to pay with a bridging loan?

There are a number of costs to factor in when applying for a bridging loan including:

Lender fees

The lender is the company from which you borrow the money for your project. We’re a broker – we don’t lend money ourselves. Our role in the process is to match the right lender and borrower. Lenders charge borrowers an initial fee which is based on the amount of money you want to borrow.

Other costs imposed by the lender may include:

  • a “draw-down fee” of up to a few hundred pounds (although most borrowers have now dropped this fee) and
  • a redemption fee which removes the lender’s legal charge from the property you provide as security when the facility is paid back in full.

Legal costs

Legal costs vary depending on the amount of work involved in processing the loan. If a transaction is more complex, the legal fees will tend to be higher.

The legal costs to process a bridging loan application include the cost of solicitors (required for both you and the lender). In many cases, you will be required to pay for the solicitor engaged by your lender.

Survey fees

As with purchasing properties using a standard mortgage, your lender will require that the property you offer as security is professionally surveyed. This is the case for both first charge and second charge bridging loans.

The lender usually selects the surveyor they wish to use and you will need to pay the surveyor’s fees. However, on some transactions which are worth under £1m, some lenders opt to use a desktop valuation service that is quicker and cheaper for you than traditional methods of valuation.

Broker fees

As a bridging loan broker, Redrock charges a fee for its services. From launch, we have always aimed to be one of the most competitively priced bridging loan companies on the market and we price our services at a level that maximise your return on property projects.

Loan exit fees

Loan exit fees vary from company to company. Usually, they are priced at up to 2% of the total loan value but you will always be informed of this before signing an agreement.

Lenders only tend to charge loan exit fees if they think the loan deal is high risk. In most cases, you will not be charged a loan exit fee.

How do I pay back the loan?

Bridging loans are usually paid back over three and twenty-four months. On or before the final date of the loan agreement, you will need to pay the lender back in full.

The most common ways of raising the funding required to repay a bridging loan are:

  • the sale of the property which you used as security for the loan
  • the securing of a buy-to-let or HMO mortgage (following any renovation work if appropriate)
  • the sale of the property to a third party, either as a whole or of some or all of the separate units created during a renovation project
  • the arranging of another loan like an occupier mortgage or a buy-to-let mortgage whose proceeds are used to repay your loan provider
  • income from a third-party source or a client (for example, payment of a large invoice)
  • expected proceeds from an inheritance
  • the maturing of an insurance policy
  • the selling of another property owned by you or your business

If you have another exit strategy in mind, please contact us.

Who can apply for a bridging loan with Redrock?

Redrock are an experienced bridging loan provider company and we offer our competitively-priced loans to a wide range of borrowers. We currently work with:

private individuals
limited companies
SPV limited companies
first-time developers
personal or corporate borrowers with no or poor credit history

We would welcome the opportunity to talk through your property development or fundraising plans in order to see how we can assist you.

What other bridging loan calculators are available online?

  • Barclays bridging loan calculator online
  • Bridging loan calculator for NatWest
  • RBS bridging loan calculator
  • Bridging loan calculator for Nationwide
  • Santander bridging loan calculator
  • Lloyds bridging loan calculator
  • Halifax bridging loan calculator
  • Together bridging loan calculator
  • HSBC bridging loan calculator

It’s always useful to research bridging loan options offered by High Street banks however it’s also just as important to remember that these calculators will only display costing information on the specific packages on offer from each institution.

Does Redrock have a mortgage bridging loan calculator?

No. A bridging loan is not a mortgage. This can be confusing as people do use bridging loans to help with the purchase of property that they intend to live in.

If you secure a bridging loan or development finance on a property you plan to live in, the agreement will be regulated by the Financial Conduct Authority. Likewise, if you use equity in your primary residential property to raise funds with a second charge bridging loan, this will also be regulated.

Please click here to read more about our regulated bridging loan service.

Do you need further help or assistance?

To apply for a bridging loan, please fill in the form below or call us on 020 3780 7610. Alternatively, you can click here for our contact form and we will call or email you back.