There are broadly 3 methods of paying the interest on a bridging loan, defined as follows:

1. Rolled-up interest - There are NO monthly payments to make with a rolled-up interest bridging loan. The interest is ‘rolled up’ and paid as a lump sum at the end of the loan term. With rolled-up interest the lender does not charge interest on the interest already added to the loan.

2. Retained interest - Again there are NO monthly payments to make with a retained interest bridging loan. The interest is added to the loan and paid at the end of the term when the loan is paid back. Where retained interest differs to rolled-up interest is that the lender charges interest on the interest already added to the loan, which is considered to be controversial as this is effectively a double whammy.

3. Serviced interest - Making monthly interest payments is referred to as a serviced bridging loan. The interest payments are calculated form the gross loan amount which includes the lender's facility fee, which is usually 2%.

In most cases there are no early repayment penalities. For example if your loan term is 12 months, but you redeem the loan after 4 months you will only incur 4 months worth of interest.

The large majority of bridging loans are taken out on a rolled-up or retained interest basis. Our bridging loan calculator displays results on the basis of rolled-up interest.

Interest rates will vary depending on the loan to value (LTV) percentage. The maximum LTV is generally 80% but can be increased if additional security is provided.

Interest rates start from 0.55, and are dependant on a number of factors such as the loan to value. For instance lower LTV's will attract lower interest rates. Other factors effecting the interest rates can also include the property location, and property type (residential, commercial, semi-commercial, land, etc.)

With rolled-up and retained interest bridging loans the loan plus any interest cannot exceed the lender’s maximum LTV criteria.

Loan-to-value is calculated from your loan requirement plus any current outstanding borrowings as a percentage of the total security value. Typically, overall loan to value should not exceed 75%, however this can be increased with additional security.

There are generally no up-front fees to pay for your bridging loan.

Once a bridging loan has been approved for you and you have accepted the terms offered, you will be required to pay a valuation fee in order to proceed with the loan. Legal fees will follow, and administration fees are usually added to the loan amount.

Each bridging loan application is dealt with on a case by case basis.

To provide an accurate bridging loan quotation EquityOne Finance Ltd will require the applicant to provide all the necessary detail to ensure qualifying criteria, and to be able to provide a detailed terms of all costs, fees, and interest rates payable by the borrower. Please note that fees such as valuation, admin, and legal fees can differ between alternative lending sources.

If you wish to apply for a decision in principle, click the link below.

There are no upfront fees, no credit search, & you are under no obligation to proceed.

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A bridging loan could be completed a few days.

This does however vary depending on the nature and complexity of the case. A decision in principle can usually be provided quickly within a couple of hours.