The fees on a UK bridging loan
A bridging loan quote usually has an arrangement fee, a percentage of the gross loan, and sometimes a broker fee. There are also valuation and legal fees at the start, and some lenders charge an exit fee or administration and monitoring fees. They are separate from the interest, so a quote can look cheap on the rate and still be expensive on fees.
Percentage fees are charged on the gross loan, which is the amount before any fee is taken from the advance. Fixed fees such as valuation and legal costs are paid in cash at the start.
Deducted or paid separately
Lenders often take the arrangement fee from the advance, so you receive less than the gross loan. If you pay it separately, you receive the full gross loan and pay the fee from your own money. The total fees are the same, but the cash in your hands on day one is not. Choose the option that matches your offer.
Worked example: a £400,000 bridging loan
A £400,000 gross loan has a 2% arrangement fee of £8,000 and a 0.75% broker fee of £3,000. Together that is £11,000 of percentage fees, taken from the advance, so £389,000 is paid to you.
Valuation (£1,800) and legal fees (£2,600) add £4,400 paid at the start, and a 1% exit fee adds £4,000 when you repay. Total fees are £19,400.00, which is 4.85% of the loan, or £2,155.56 for each of the nine months. After paying the fixed fees you have £384,600.00 to use.
What this page leaves out
This page adds up fees only. It does not include interest, which is usually the larger cost on a bridging loan, or stamp duty and other purchase costs. Use the bridging finance calculator for the total cost of borrowing.
To add interest to these fees, use the UK bridging finance calculator .
To compare two quotes side by side, use the UK bridging loan comparison calculator .
Use the right country page
This page stays in pounds and uses UK terms: arrangement fee, valuation and legal fees. The country choices above the inputs open separate local pages. Choosing United States opens the US bridge loan fee calculator, which uses points, appraisal, title and closing costs. The inputs reset and amounts are not converted.
Inputs for the bridging loan fee calculator
Gross loan amount
The loan before any fee is taken from the advance. Percentage fees are charged on this.
Time you expect to keep the loan
Whole months, used to spread the fees over the term.
Arrangement fee
A percentage of the gross loan, from your quote.
Broker fee
A percentage of the gross loan. Enter zero if the lender pays the broker.
Valuation fee
Paid to the valuer, usually at the start.
Legal fees
Your solicitor's fees plus the lender's legal costs.
Other fees
Administration, monitoring or other fees in your quote.
Exit fee
A percentage of the gross loan, paid when you repay. Enter zero if none.
Arrangement and broker fees are
Taken from the advance, or paid separately in cash.
CALCULATOR QUESTIONS
UK bridging loan fee calculator questions
How much are bridging loan fees?
It varies by lender and loan. Add up the percentage fees, valuation and legal costs, and any exit fee from your quote; the calculator does it for you.
Are bridging loan fees charged on the gross or net loan?
Arrangement and exit fees are usually a percentage of the gross loan, but check your quote. This calculator uses the gross loan.
Is the arrangement fee taken from the loan?
Often it is deducted from the advance, so you receive less. Some lenders add it to the loan or ask you to pay it separately.
Do these fees include interest?
No. Interest is a separate cost. Use the bridging finance calculator to see interest and fees together.
What happens when I change country?
The United States option opens the separate US bridge loan fee page, in dollars, with points and closing costs. Your inputs are reset rather than converted.