How to read the result
The all-in cost is the figure that matters when comparing bridges against each other or against a longer-term commercial mortgage. Headline monthly rate is only one component. A 0.70% per month bridge with a 2.5% arrangement fee on a 6-month term is more expensive than a 0.80% per month bridge with a 1.5% arrangement fee on the same term.
The effective annualised rate (EAR) on this calculator divides the total finance cost by the loan, then annualises across the term. It is the closest single-number comparison to an APR on a longer-term product.
The formulas
Monthly interest = Loan × Monthly rate
Total interest = Monthly interest × Term
Arrangement fee = Loan × Arrangement %
Exit fee = Loan × Exit %
All-in cost = Total interest + Arrangement fee + Exit fee + Other costs
Effective annualised rate = (All-in ÷ Loan) ÷ (Term ÷ 12) × 100
Worked example
Monthly interest: £800,000 × 0.85% = £6,800
Total interest over 9 months: £61,200
Arrangement fee: £16,000
Other costs: £6,500
All-in: £83,700 · that is what the bridge actually costs over the 9-month hold. Effective annualised rate is 13.95%. Compare against your exit strategy: if the term loan refinances at 7% over 5 years, the bridge has cost roughly 7% extra in absolute terms, but bought the certainty of completing the acquisition.
UK commercial bridging norms, 2026
- Sub-50% LTV, prime asset, strong covenant · 0.65% to 0.75% per month.
- 50 to 65% LTV, mid-market · 0.75% to 0.85% per month.
- 65 to 75% LTV, standard · 0.85% to 0.95% per month.
- Above 75% LTV or specialist case · 0.95%+ per month, often with additional covenant.
Reminder. For illustrative purposes only. These calculators are educational. They are not advice. Actual lender pricing and underwriting decisions depend on covenant, LTV, sector, property condition and dozens of factors a calculator does not see. Always validate with a regulated advisor before committing to finance.
Frequently asked
How much does UK commercial bridging cost?
UK commercial bridging prices 0.70% to 0.95% per month on the headline rate, depending on LTV, asset quality and borrower covenant. Add a 1.5% to 2% arrangement fee and, on some lenders, a 0.5% to 1% exit fee. Plus legals, valuation and any monitoring surveyor cost.
What is rolled interest and retained interest?
On retained interest, the lender deducts all interest upfront from the gross loan, so the borrower receives a net loan and repays the gross at the end. On rolled (or serviced) interest, the borrower pays each month and the loan balance does not increase. This calculator models serviced bridging; for retained interest you would gross up the loan to account for upfront interest deduction.
What is the arrangement fee on a UK commercial bridge?
The arrangement fee is what the lender charges to set up the facility. UK commercial bridging arrangement fees range from 1.5% to 2.0% of the gross loan. It is typically deducted from the loan advance on day one.
When does commercial bridging make sense?
Commercial bridging is short-term capital, usually 1 to 18 months. It is appropriate for auction purchases, refurbishment-and-flip, planning gain, lease regear, change of use, or buying off-market while arranging a longer-term commercial mortgage. The cost only stacks up when the exit is real and the timeline is short.
Companion calculators
- Repayment Calculator · for the longer-term commercial mortgage exit.
- DSCR Calculator · check whether the post-bridge term loan clears cover.