Net LTV and gross LTV
Bridging lenders quote a maximum loan to value, but they measure it in two different ways. Net LTV compares the cash actually advanced to you with the property value. Gross LTV compares the whole debt at the end of the term, including retained or rolled-up interest and any arrangement fee added to the loan, with the property value.
The difference matters most when interest is retained or rolled up, because that interest is added to the debt rather than paid monthly. Two lenders that both advertise 75% can lend very different amounts if one measures net and the other gross, so check which basis your quote uses and select it under Limit measured on.
Second charge and existing mortgages
If the bridge sits behind a mortgage that stays in place, such as a second-charge bridging loan, enter that mortgage under Existing mortgage or charge. Lenders add it to the bridge when they work out the LTV, so both net and gross LTV here include it. Enter zero for a first-charge bridge on an unmortgaged property or when the bridge repays the old mortgage.
Worked example: retained interest on a £500,000 property
You need £300,000 against a property valued at £500,000, with no existing mortgage. The lender charges 0.85% a month for 12 months, retains the interest and deducts a 2% arrangement fee from the gross loan. To leave you £300,000, the gross loan must be £341,685.65, because 10.2% interest and 2% fee are both deducted: £300,000 ÷ (1 − 0.102 − 0.02). The retained interest is £34,851.94.
Net LTV is £300,000 ÷ £500,000 = 60%. Gross LTV is £341,685.65 ÷ £500,000 = 68.3%. With a 75% gross limit, the most cash this lender could advance on the same terms is £329,250. A lender allowing 70% on a net basis would instead let you take up to £350,000, more than the 75% gross lender.
What this calculator does not decide
Loan to value is only one test. Lenders also look at the property type, your exit plan, your experience and credit, and they use their own valuation, which may differ from your estimate. Commercial and land loans usually have lower maximum LTVs than residential property. This estimate is not an offer.
To see the full cost of the loan, including exit fees and other charges, use the UK bridging finance calculator .
For a quick maximum loan from a property value and LTV, try the bridging loan borrowing power calculator .
Use the right country page
This page stays in pounds and uses UK bridging terms: monthly rates, retained interest, arrangement fees and net or gross LTV. The country choices above the inputs open separate local pages. Choosing United States opens the US bridge loan LTV calculator, which focuses on combined LTV with an existing mortgage and uses annual rates and origination points. The inputs reset and amounts are not converted.
Inputs for the bridging loan LTV calculator
Property value
The value of the property securing the loan, ideally the lender's valuation.
Existing mortgage or charge
Any mortgage that stays in place behind or ahead of the bridge. Enter zero if none.
Cash you need
The cash to receive. Retained interest and a deducted fee are added on top to give the gross loan.
Quoted interest rate
The rate in your quote, not the APR. UK bridging is usually quoted per month.
Rate quoted per
Month for a monthly rate. Year (nominal) divides an annual rate by twelve; Year (effective) converts an effective annual rate.
Term
The number of months you expect to keep the loan.
How interest is paid
Retained and rolled-up interest add to the debt and raise gross LTV; serviced interest does not.
Arrangement fee
The lender's fee as a percentage, often 1% to 2%.
Fee based on
Whether the fee is a percentage of the cash you receive or of the gross loan.
Arrangement fee payment
Paid separately, or deducted from the loan, which adds it to the debt.
Lender maximum LTV
The highest loan to value the lender allows, including any existing mortgage.
Limit measured on
Gross debt at the end includes interest and fees; net cash advanced counts only the money you receive.
CALCULATOR QUESTIONS
UK bridging loan LTV calculator questions
What is the difference between net and gross LTV?
Net LTV uses only the cash advanced. Gross LTV uses the whole debt at the end, including retained or rolled-up interest and any fee added to the loan, so it is always at least as high.
What LTV can I get on a bridging loan?
Many UK lenders go up to about 70% to 75% on residential property and less on commercial property or land. Check whether the limit is net or gross.
Does serviced interest affect LTV?
No. If you pay interest monthly, it is not added to the debt, so net and gross LTV only differ by any fee added to the loan.
Does a second-charge bridge count the first mortgage?
Yes. Lenders add the existing mortgage to the bridge when they check the maximum LTV, which is why it is an input here.
What happens when I change country?
The United States option opens the separate US bridge loan LTV page, in dollars, with its own defaults and terms. Your inputs are reset rather than converted.