Bridging loan interest explained: monthly, rolled-up and retained

Why bridging is priced monthly

Because a bridge runs for months, not years, lenders quote a monthly rate — say 0.75% a month. Annualised, that is roughly 9% per annum before fees, but you only hold it briefly, so the pounds cost is what matters most.

The three ways interest is charged

Serviced: you pay interest monthly, as on a normal loan. Rolled-up: interest is added to the balance and paid at exit. Retained: interest for the term is deducted from the advance up front, so you receive less.

Fees stack on top

Bridging typically carries an arrangement fee (often 1–2%), plus valuation and legal costs, and sometimes an exit fee. These lift the true cost well above the monthly rate — always ask for the total cost over your expected term.

Have a clear exit

Bridging works only with a defined exit — a sale, a refinance, a completion. Model the total cost over the realistic term with the calculator below before committing.

Where Credicorp fits

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.

See rolled-up interest and retained interest.