How Bridging Interest and Fees Affect the Net Loan
Gross Loan vs Net Loan
A bridging loan may be quoted as a gross loan, but the amount you actually receive can be lower.
This is because lenders may deduct:
- Retained interest for the agreed loan term
- Arrangement fees
- Valuation and legal costs
- Administration or exit fees, where applicable
For example, a £200,000 gross loan does not always mean £200,000 reaches your solicitor. The remaining amount after deductions is the net loan.
We calculate the likely net funds before you proceed, so you know whether the facility will provide enough money to complete your HMO purchase, conversion or refurbishment.
