If you’re looking to borrow a short-term sum quickly, a £50k bridging loan could be the solution. At Fast Property Finance, we specialise in arranging bridge financing that’s fast, flexible, and tailored to your needs. Whether you’re purchasing a property, covering a temporary cashflow gap, or need funds for renovations, our team can help.
What is a bridging loan?
A bridging loan is a short-term borrowing option designed to “bridge” the gap between an immediate need for funds and a longer-term financial solution. Typically secured against property, bridging finance can be arranged far more quickly than a traditional mortgage, making it popular with property investors, landlords, and homebuyers.
How much does a £50k bridging loan cost?
The cost of a bridging loan will depend on your circumstances, including the property value, loan-to-value (LTV), and the purpose of borrowing. When it comes to £50k bridging loan rates, lenders usually quote interest on a monthly basis rather than annually.
Typical interest rates for a £50k bridging loan can range between 0.5% and 1.5% per month. While this is higher than standard mortgage rates, bridging loans are designed to be short term, often repaid within 6 – 18 months, so the overall cost can be manageable when used for the right purpose.
Example of a £50,000 bridging loan
The below example illustrates a loan of £50,000 over 12 months at 0.65% monthly
The interest is added to the balance each month and everything is repaid in one lump sum at the end.
| Month | Opening (£) | Interest (0.65%) (£) | Closing (£) |
|---|---|---|---|
| 1 | 50,000.00 | 325.00 | 50,325.00 |
| 2 | 50,325.00 | 327.11 | 50,652.11 |
| 3 | 50,652.11 | 329.24 | 50,981.35 |
| 4 | 50,981.35 | 331.38 | 51,312.73 |
| 5 | 51,312.73 | 333.53 | 51,646.26 |
| 6 | 51,646.26 | 335.71 | 51,981.97 |
| 7 | 51,981.97 | 337.88 | 52,319.85 |
| 8 | 52,319.85 | 340.08 | 52,659.93 |
| 9 | 52,659.93 | 342.29 | 53,002.22 |
| 10 | 53,002.22 | 344.51 | 53,346.73 |
| 11 | 53,346.73 | 346.75 | 53,693.48 |
| 12 | 53,693.48 | 349.01 | 54,042.49 |
Summary:
- Initial Loan: £50,000
- Final Repayment (Month 12): ~£54,042.49
Total Rolled-Up Interest: ~£4,042.49
Using a £50k bridging loan calculator
Before committing, it’s a beneficial idea to get an estimate of how much your loan will cost. With a £50,000 bridging loan calculator, you can quickly see the potential monthly payments and total interest over your chosen term. This allows you to plan your exit strategy and ensure the loan fits your budget.
Why choose Fast Property Finance?
At Fast Property Finance, we work closely with our clients to secure bridging loans that are competitive and straightforward. Our advantages include:
- Access to specialist lenders offering flexible terms
- Quick decision-making, often within days
- Support throughout the application process
- Clear advice on your repayment and exit options
Is a £50k bridging loan right for you?
If you need fast access to funds and have a clear plan for repayment, for example, selling a property or refinancing, then a bridging loan can be an effective solution. However, because rates are higher than traditional lending, it’s important to take professional advice and fully understand your costs.
