KIS Bridging Loans
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Commercial Calculator
Please select Auto or Manual: We recommend this is left set on Auto!

Auto - The calculator will select the interest rate and facility fee based on the loan size required, type of property and available equity.

Manual - Monthly interest rate and facility fee can be entered manually, plus an option for an exit fee. This is useful if you have a specific calculation that you would like to make.
Please Note: We recommend that you keep the calculator set at ‘Auto’.

By setting to ‘Manual’ you will be required to enter the monthly interest rate, facility fee and if applicable any exit fee.

Back to Auto Stay on Manual
Type of Security
Please select the type of property that you wish to use as security.

Semi-commercial = properties made up of a shop or offices with living accommodation above or behind.
Commercial = shops or offices with no living accommodation.
Land with planning = land that has been granted outline planning permission.
Land without planning = land that does not have the benefit of planning permission.
Loan Required
Please enter the loan amount that you require. If roll up or retained interest is selected, this will be added on top of the loan required, along with any lender facility fee.
The total ‘net’ loan amount that you are looking to borrow. This is the amount you are expecting to receive before interest or any other costs have been added.
Loan Term Required
Please select how long you require the loan for.
Number of Properties
Please select how many properties that you would like to use as security for the loan.
Property 1: Open Market Value
Please enter the estimated open market value of the property being used as security.
The estimated market value of the property being used as security.
Property 1: Mortgage Balance
Please enter the amount outstanding for any existing borrowings that will be remaining in place with this new loan facility.
Property 2: Value
Property 2: Mortgage Balance
Property 3: Value
Property 3: Mortgage Balance
Property 4: Value
Property 4: Mortgage Balance
Property 5: Value
Property 5: Mortgage Balance
Property 6: Value
Property 6: Mortgage Balance
Retained Interest or Pay Monthly
Retained Interest - Monthly interest is charged based on the gross loan balance (the total loan facility at the end of the loan term). Therefore, during the loan term, the amount on interest charged each month is the same.

Pay Monthly - Interest is charged on the loan balance at the end of each month, and also paid each month, meaning no increase in the loan balance.
Redemption Amount
For Early Repayment

Amount to Repay if Loan
Cleared at the End of:
To find out how much a loan will cost to redeem if repaid early, please select which month the loan could be repaid.
Instant Results
Please Note: The Loan to Value has exceeded the maximum of 100%

You can reduce the loan to value by any one, or more, of the following actions:

1. Reduce the loan amount required
2. Add additional security
3. Reduce the loan term required - Not advised and may not be an option
4. Consider making monthly interest payments rather than roll up interest - Not advised and may not be an option

If you wish to continue using the calculator without Loan to Value restrictions, please switch the calculator from Auto to Manual.

Loan amount required before interest or costs have been added. The amount of funds released by the lender to the borrower.Net Loan Required - - -
This is the length of the loan in months.Loan Term - - -
The monthly rate of interest charged on the loan facility.Interest Rate (per month) - - -
Calculated as a percentage of the gross loan amount and included in the loan facility, therefore paid when the loan is repaid.Lender Facility Fee (0.5%) - - -
Net loan required plus the lender facility fee. Total facility amount before interest.Net Loan Required Plus Facility Fee - - -
This is the monthly interest amount charged each month. For retained interest facilities, interest is calculated and charged on the gross loan amount.Monthly Interest - - -
The total amount of interest charged if the loan is repaid right at the end of its term.Interest if Loan Runs Full Term - - -
Total loan facility, includes loan required, lender facility fee, interest for the full term. For retained interest facilities interest and lender facility fees are calculated and charged based on this figure.Gross Loan - - -
Based on the total value of the properties offered as security then taking into account any mortgages that are to remain and the gross bridging loan facility.Loan To Value (LTV) - - -
Other Costs
This is the estimated cost if a full valuation is required on the properties offered as security. This figure maybe reduced if a desktop, drive by or existing valuation is sufficient for the lender.Valuation Fees - - -
Most lenders charge administration fees, the amount of which can vary. The fee shown is for a typical plan.Lenders Administration Fee - - -
Lenders will require clients to pay any legal fees incurred in relation to arranging their loan.Estimated Lender Legal Costs - - -
Lenders are charged this fee for sending the proceeds of the loan to their solicitor. They claim this charge back from their customers.Telegraphic Transfer Fee - - -
When the loan is repaid the lenders charge an admin fee to remove their charge over the security property.Redemption Administration Fee - - -
Some loan plans have exit fees. The vast majority of our loan plans do not.Exit Fee (0%) - - -
Most brokers and packagers charge fees, we do not.Packager and Broker Fees - - -
Loan Settlement
Estimated amount to redeem the loan if it runs full term.Redemption Amount At Full Term - - -
Estimated amount required to redeem the loan if it is cleared early, at the end of the early redemption month selected.Early Settlement, Month 5 - - -
Broker Fees or Packager Fees

For Property Purchases
Stamp Duty Calculator

This calculator is for bridging loans secured against commercial property and land.

For calculations for bridging loans secured against residential property, such as houses and flats, please use our residential bridging loan calculator.

This calculator provides a detailed guide to the interest charges, plus all the other costs, associated with taking out a bridging loan.

It is designed to provide an accurate as possible guide to the overall cost of a bridging loan facility if it runs full term, and also the reduced costs if the loan is cleared early.

The calculations are based on our most common and popular loan plans. The lending criteria for these plans are detailed below.

However, the figures generated should not be relied upon as an accurate quote. Please contact us at anytime and we will be pleased to provide you with a detailed accurate quote and loan approval.
Jerry Matthews
Jerry Matthews
Commercial Manager
& Head of Bridging

Alan Andrews
Alan Andrews
Commercial Consultant
secure site

Commercial Bridging Loans

What is a commercial bridging loan?

Commercial bridging loans are short-term loan facilities that are secured on either commercial property, development land or farmland. They are used by businesses or individuals who require a fast or short-term loan ranging from £100,000 to £100 million.

At KIS Finance we can provide:

  • Immediate in principle decisions
  • Fast quotes and written terms
  • Loans from £100,000 to £1 billion
  • Loan terms from 1 to 36 months
  • Fast funding (48 hours possible)
  • Loans to companies, partnerships, or individuals
  • Loans for those with poor credit history
  • Loans on all types of property and land
  • Loans on all types of property construction
  • Loans on property in a poor state of repair
  • 1st, 2nd, 3rd equitable and unilateral charges available
  • We cover all the UK

Commercial bridging loans can be used for:

  • Purchasing property
  • Property developments
  • Renovation/restoration projects
  • Business expansion
  • Cashflow
  • Order fulfilment
  • Repossession prevention
  • Pay bills

How does a Commercial Bridging Loan differ from a Commercial Mortgage?

  • Speed - a commercial bridge can be arranged in weeks, whilst a commercial mortgage can take months to put in place.
  • Length of term - a commercial bridge is usually for no longer than 18 months, although longer terms can sometimes be arranged.
  • Interest rates - commercial bridging rates are higher due to the increased risk to the lender compared to a standard commercial mortgage.
  • Underwriting criteria - bridging lenders will lend on property in a poorer condition and on a higher loan to value. Commercial mortgage lenders will also require a larger deposit and will require you to meet strict income / affordability criteria.

When to choose a commercial bridge

A commercial bridge can offer a suitable alternative in circumstances where a commercial mortgage wouldn’t be appropriate. This is usually due to the speed that the money is required or where normal mortgage criteria can’t be met. Auction purchases are a common example of where a commercial bridge is the best option. Similarly properties that need refurbishment may not meet mortgage criteria until the works are completed, making a bridge a suitable option until longer term finance can be arranged.

What can a commercial bridging loan be secured on?

Acceptable security for a commercial bridging loan
Commercial Property Semi Commercial Property Land
Shops Shops/retail units * Development Land with planning
Offices Restaurants * Land without planning
Factories Offices * Farmland
Hotels * A semi commercial property is simply a commercial property that also includes living accommodation. For example a shop with a couple of flats above.  
Care Homes

Commercial bridging loan calculator

Our commercial bridging loan calculator is designed to provide full details of the costs involved in obtaining a commercial bridging loan. It will calculate and compare the full interest costs if the loan runs full term or is cleared early.

How to use our simple calculator

You only need to enter:

  1. the type of commercial property or properties that you would like to use as security
  2. loan amount
  3. loan term required
  4. number of security properties being used and their value.

Early repayment option - If you will be paying the loan back early, you can also select the month that you think this will happen. The calculator will then calculate the estimated redemption figure for the selected month, in addition to the redemption figure if the loan runs its full term.

Commercial bridging loan interest rates and costs

Rates from 0.65% per month

There are fewer lenders in the commercial bridging market as this is a more specialist area of lending than the residential property market.

Commercial properties are seen as higher risk by lenders, compared to residential properties, which is reflected in the interest rates offered on commercial loans.

The type of commercial property used as security and its location will also impact on the cost of the loan. If the exit strategy for the loan is the sale of the property then the likely speed of sale in the current market will also impact on the interest rate. The higher the perceived risk by the lender the higher the rate of interest that will be offered.

Interest rates for bridging on semi-commercial property

Semi Commercial – Property that is a combination of commercial and residential for example a shop with flats above.

Semi-Commercial Rates
50% LTV 0.65% per month
65% LTV 0.75% per month
70% LTV 0.85% per month

Interest rates for bridging on commercial property

Commercial Rates
50% LTV 0.7% per month
65% LTV 0.8% per month
70% LTV 0.85% per month

Interest rates for bridging on development land with planning permission

Land With Planning
50% LTV 0.65% per month
65% LTV 0.75% per month
70% LTV 0.85% per month

Interest rates for bridging on land without planning permission

Land Without Planning
0.75% per month up to maximum of 55% loan to value

Interest rates for bridging on farmland

0.75% per month up to maximum of 60% loan to value

Fees and costs for commercial bridging finance

In addition to interest charges, there are other fees and costs involved when taking out a commercial bridging loan.

Lenders facility or arrangement fee - This is typically 2% of the net or gross loan amount. On our most popular plans we are able to reduce this fee depending on the amount being borrowed.

For loans up to £400,000 the lender facility fee is 2%, on many facilities we can arrange for this to be reduced.

Lenders Facility Fees
Loan Amount Facility Fee
£400,000 2%
£500,000 1.75%
£600,000 1.5%
£750,000 1.25%
£1m 1%

Lenders charge their arrangement fees differently, some charge it based on the net loan amount and other charge it based on the gross loan amount. The net loan amount is the amount required by the borrower, the gross loan contains arrangement fees plus any rolled up or retained interest. For the client it is therefore more favourable to calculate the facility fee based on the net loan amount.

Broker and packager - We do not charge broker or packager fees

Success fees - We do not charge success fees

Commitment fees - We do not charge commitment fees

Valuation fees - For commercial bridging loans lenders will usually require a valuation to be carried out. If you have a recent valuation report available, then please let us know because we maybe able to make use of it.

Legal fees - In addition to your own solicitor fees, the lender will require you to pay their legal costs.

Exit fees - Most of our commercial bridging loans do not have an exit fee. However, some plans do have an exit fee, typically ranging from 0.5% to 1% of the net or gross loan amount. This is charged when the loan is redeemed and added to the loan redemption amount. Because it is added when the loan is redeemed, interest is not charged on the on the exit fee, whereas it is charged on the facility fee.

Telegraphic transfer fee - Often referred to as a TT fee. Banks charge to send large sums of money out to a lender’s solicitor, who in turn will send the money to the borrower’s solicitor. These charges are around £30 to £45 and are picked up by the borrower.

Commercial bridging loan lending criteria

We have an extensive panel of lenders which enables us to arrange bridging loans for a wide range of circumstances.

Loans from £100,000 to £1 billion

Loan terms from 1 month to typically 18 months, although up to 36 months is possible.

Commercial bridging loans can be arranged for:

  • Individuals
  • Sole traders
  • Partnerships
  • Limited companies
  • Offshore companies

Evidence of income and affordability

The interest charges on a commercial bridging loan can be added to the loan facility and repaid when the loan is redeemed. Therefore the borrower doesn’t need to demonstrate that they can afford to make monthly interest repayments.

However, the lender will want to know how the borrower intends to repay the loan. This is known as the exit route. This is usually through the sale or refinance of a property, although other methods are also considered. For example the borrower may be waiting for a debt to be repaid, a VAT refund, or the loan is to buy a bargain item that will then be sold quickly (flipped) for a quick profit.

The lender will need to be satisfied that the intended exit route is viable. For example if the planned exit is refinance they will need to be confident that the borrower is able to arrange the required long term finance facility. Therefore if the borrower has bad credit that may prohibit more traditional long term facilities, they are likely to be uncomfortable with the planned exit route and not lend.

Credit history

Having debts or a poor credit history does not exclude applicants from obtaining a commercial bridging loan.

  • CCJs
  • Poor credit score
  • Defaults
  • Arrears
  • Repossessions
  • IVAs
  • Bankruptcies
  • Statutory demands
  • Winding up orders

What is important is the planned exit route. If the loan is to buy a property to restore or convert, then once finished it will be sold for a profit, then this will most likely be acceptable to a bridging lender, regardless of the applicant’s credit history. If the applicant has terrible credit and is planning to refinance once the property is finished, this will be of concern and the lender will require evidence that refinance is possible or that there are other possible exit options.

Last updated: 22 October 2021