Question 1

How is bridging loan interest calculated?

Accepted Answer

Bridging loan interest is charged monthly on the outstanding balance, with rates from 0.7% per month. During a rolled-up phase each month's interest is added to the balance, so later months accrue interest on prior interest. During a serviced phase the balance stays level and interest is paid monthly. The calculator applies exactly this logic to every month of the term.

Question 2

What is the difference between rolled-up and serviced interest?

Accepted Answer

Rolled-up interest capitalises: nothing is paid during the rolled-up months and the accumulated interest is repaid with the balance at exit. Serviced interest is paid monthly, so the balance stays level but the facility needs monthly cash flow. Many facilities combine the two, rolling up interest first and servicing the remaining months. The calculator accepts any split, including fully rolled up or fully serviced.

Question 3

What fees does a bridging loan have?

Accepted Answer

The main cost items are the facility (arrangement) fee, typically around 2% of the gross facility and deducted from the advance at drawdown, an exit fee on some facilities, and third-party legal and valuation costs. The calculator itemises each of these and shows the total cost of credit alongside an indicative annualised cost, so you can see every component of the total.

Question 4

How much can I borrow against my property?

Accepted Answer

As a guide, Rikvin Capital lends up to 75% of the security value. The facility amount also depends on the asset type, its liquidity, the intended exit route and the results of valuation and legal due diligence. The calculator flags any scenario above the guide maximum so you can adjust the figures.

Question 5

Is this calculator an offer of finance?

Accepted Answer

No. The calculator is an indicative illustration for discussion in the United Kingdom. It is not an offer of finance, a quotation or advice, and every facility remains subject to credit approval, valuation and legal due diligence. Once we understand your scenario, we can issue an indicative term sheet within 24 hours, with funds typically available in about two weeks.

Month	Phase	Opening balance	Interest	Payment due	Closing balance
0	Drawdown			£2,927,000net advance released	£3,000,000
1	Rolled	£3,000,000	£21,000		£3,021,000
2	Rolled	£3,021,000	£21,147		£3,042,147
3	Rolled	£3,042,147	£21,295		£3,063,442
4	Rolled	£3,063,442	£21,444		£3,084,886
5	Rolled	£3,084,886	£21,594		£3,106,480
6	Rolled	£3,106,480	£21,745		£3,128,226
7	Serviced	£3,128,226	£21,898	£21,898	£3,128,226
8	Serviced	£3,128,226	£21,898	£21,898	£3,128,226
9	Serviced	£3,128,226	£21,898	£21,898	£3,128,226
10	Serviced	£3,128,226	£21,898	£21,898	£3,128,226
11	Serviced	£3,128,226	£21,898	£21,898	£3,128,226
12	Exit	£3,128,226	£21,898	£3,150,123includes redemption of balance	£0

Bridging Loan Calculator

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