A bridging loan example is useful when it shows the whole transaction: the money released, your own cash contribution, costs paid during the loan and the amount needed to repay it. The borrowing figure alone is not enough.
The hypothetical examples below follow one purchase through different interest arrangements, a sale and a possible mortgage exit. They show why a repayment plan needs some room for delays and lower valuations.
These figures are invented for explanation. They are not actual client cases, available products or quotations. The rate, fees, term and mortgage percentage are assumptions, not Count Ready’s charges or lending criteria. Actual terms and any required disclosures must be checked for your circumstances.
Your property may be repossessed if you do not repay a loan secured on it. A sale, extension or replacement mortgage is not guaranteed.
For definitions of charges and interest arrangements, use the bridging loan cost guide (opens in a new tab). This page concentrates on how the figures fit together.
The assumptions behind the worked examples
We assume a property purchase of £250,000 with a £200,000 gross loan. No existing debt needs to be repaid from the advance. The following assumptions stay the same so you can see the effect of changing the interest arrangement.
Borrowing and interest
- Agreed term
- Six months
- Assumed monthly interest rate
- 0.75%, charged on the original £200,000
- Interest calculation
- Simple interest: £200,000 × 0.0075 × 6 = £9,000
Fees and payment dates
- Arrangement fee
- £3,000 deducted from the loan at completion
- Legal and valuation costs
- £3,000 combined, paid separately from your own cash
- Exit fee
- £2,000 payable when the bridge is repaid
The £3,000 separate-cost allowance is an assumed total, not a fee quote or a statement about VAT treatment. Broker charges are excluded because none has been established for this hypothetical case; that does not mean the service is free. Taxes, refurbishment, insurance, holding costs and selling costs are excluded unless a later example expressly includes them. The model excludes compounding, interest on financed fees, minimum-interest charges, default charges and extension fees.
A real lender may define its facility differently or cap borrowing inclusive of interest and fees. Check the offer and completion statement. Multiplying a monthly rate by twelve does not give a comparable APR or APRC.
How interest changes the cash you receive and repay
With the same gross loan, retained interest releases less money at the start; rolled-up interest increases the amount due at the end. Serviced interest requires payments along the way. Here is the cash flow under each of our assumed arrangements.
Serviced interest
- Net advance
- £197,000 after the £3,000 arrangement deduction
- Own cash at the start
- £53,000 towards the purchase, plus £3,000 separate costs: £56,000
- Interest during the term
- £1,500 a month for six months: £9,000
- Repayment at six months
- £200,000 capital + £2,000 exit fee = £202,000
Retained interest
- Net advance
- £200,000 − £3,000 fee − £9,000 retained interest = £188,000
- Own cash at the start
- £62,000 towards the purchase, plus £3,000 separate costs: £65,000
- Interest during the term
- No further payment in this six-month model; £9,000 was withheld at completion
- Repayment at six months
- £200,000 capital + £2,000 exit fee = £202,000
Rolled-up simple interest
- Net advance
- £197,000 after the £3,000 arrangement deduction
- Own cash at the start
- £53,000 towards the purchase, plus £3,000 separate costs: £56,000
- Interest during the term
- No monthly payment in this model; £9,000 is settled at repayment
- Repayment at six months
- £200,000 capital + £9,000 interest + £2,000 exit fee = £211,000
The financing cost is £17,000 in each illustration: £9,000 interest + £3,000 arrangement fee + £3,000 separate costs + £2,000 exit fee. The timing differs. The retained-interest example needs more cash initially; the serviced example needs a reliable monthly payment source.
The arrangement fee has already reduced the advance. It is included in the total cost but is not added to the repayment a second time. Retained interest is also counted once, when withheld.
These are not equivalent lending offers: the cash released differs, and actual products may compound interest or charge different fees. If interest is charged on interest already added to the debt, the rolled-up repayment will exceed this simple-interest result. Early repayment and unused retained-interest treatment must also be checked against the agreement.
A sale exit: cash returned is not the same as profit
Now use the rolled-up simple-interest example. Suppose the property sells for £280,000 at six months and the selling costs are an assumed £5,000.
£280,000 sale price − £5,000 selling costs = £275,000 net sale proceeds.
£275,000 − £211,000 bridge repayment = £64,000 cash remaining.
You already contributed £56,000 at the start. The difference is £8,000 before any excluded costs, not a £64,000 profit. Refurbishment, tax, insurance and other holding costs could reduce or eliminate it.
For another property, start with the amount left after its existing mortgage, selling costs and other deductions. An advertised sale price is not the cash available to repay the bridge. A valuation or accepted offer is not completed sale proceeds.
Keep the purchase price, works budget, finance costs, sale expenses and money you put in on separate lines. Seek appropriate tax advice when assessing any actual gain. For the transaction itself, see the existing buy-to-sell guide (opens in a new tab) or buying before selling guide (opens in a new tab), depending on your plan.
What if the sale takes longer and the price falls?
The loan still has a contractual repayment date. Having an uncertain sale date does not remove that deadline. If your exit is slipping, contact the lender and your broker early rather than assuming extra time is available.
The next calculation is a sensitivity test, not an extension entitlement. It assumes the lender formally agrees two extra months at the same simple rate, with no additional charges. That agreement may be unavailable. Default terms, extra fees or a different rate could make the actual outcome worse; enforcement is also a risk.
Under that limited assumption, two extra months add £3,000 interest: £200,000 × 0.0075 × 2. Repayment rises from £211,000 to £214,000, and the modelled financing cost rises from £17,000 to £20,000.
Suppose the eventual sale price is £265,000, with the same assumed £5,000 selling costs. Net sale proceeds are £260,000. After repaying £214,000, only £46,000 remains. Compared with the original £56,000 cash contribution, that is £10,000 less than you put in, before any excluded costs.
The £15,000 lower sale price and £3,000 additional interest together turn the earlier £8,000 surplus into a £10,000 shortfall against your initial cash. This example shows an investment loss; a still lower price could also leave insufficient money to repay the lender. Borrowing less, allowing a realistic contingency or using another finance route may be more suitable.
A mortgage exit: test the net proceeds and a lower valuation
A replacement mortgage only clears the bridge if it completes in time and releases enough usable money. An expected loan-to-value ratio, agreement in principle or hoped-for property value is not a guaranteed exit.
Keep the bridge repayment at £211,000. For this calculation only, assume a new mortgage of 75% of the lender’s valuation, with £3,000 mortgage-related costs deducted from its advance. That percentage is not a claim about available lending; other fees or payment arrangements would change the result.
If the valuation is £300,000
£300,000 × 75% = £225,000 gross mortgage.
Less £3,000 deductions = £222,000 net funds.
Less £211,000 bridge repayment = £11,000 remaining.
This is money from a new secured loan, not profit. The mortgage must still be approved and completed, and its repayments need to be affordable.
If the valuation is £270,000
£270,000 × 75% = £202,500 gross mortgage.
Less £3,000 deductions = £199,500 net funds.
Against £211,000 repayment, there is an £11,500 funding gap.
If the bridge repayment has reached £214,000 under the conditional delay model, the gap becomes £14,500. You need an evidenced way to meet it; an extension cannot be assumed.
Check borrower eligibility, the property’s condition and use, income or rental evidence, existing commitments and the mortgage lender’s valuation. Necessary works, tenancy arrangements, title issues and the time required for legal work may affect the exit.
For an intended rental property, read the existing bridge-to-let guide (opens in a new tab). For a commercial property, see refinancing bridging finance with a commercial mortgage (opens in a new tab). Neither route guarantees acceptance.
Apply the calculation to your own repayment plan
- Confirm the usable advance. Ask for the gross facility, each completion deduction, any existing debt being cleared and the amount left for your transaction.
- Identify your own money. Include the purchase balance, separately paid fees, works and a realistic contingency. Do not count the same funds twice.
- Get repayment figures for relevant dates. Check interest, fees, minimum charges and early or late repayment terms. A calculator estimate is not a lender’s redemption statement.
- Evidence the exit. For a sale, consider likely net proceeds and timing. For a mortgage, check criteria, valuation, net funds and the steps needed before completion.
- Test a weaker outcome. Ask what happens with a lower price, lower mortgage advance or delay, and whether a credible alternative remains available.
The bridging finance application guide (opens in a new tab) covers preparation. Your solicitor should advise on legal obligations and security; a qualified tax adviser should deal with tax questions.
Questions about bridging loan examples
Why does a £200,000 loan release less than £200,000?
Agreed fees and retained interest may be deducted before the money is released. In our retained-interest illustration, £3,000 fees and £9,000 interest reduce the advance to £188,000. Existing borrowing being redeemed would reduce the money left for the transaction further.
Does rolled-up interest always use this simple calculation?
No. Our example charges interest only on the original capital. Some arrangements compound or charge interest on financed fees. Check the agreement’s calculation method and request a repayment breakdown for the date you expect to exit.
Can I rely on a future mortgage to repay the bridge?
Only an assessed plan can show whether refinancing is realistic, and completion remains uncertain until the necessary conditions are met. In our lower-valuation example, the assumed net mortgage proceeds fall £11,500 short of the bridge repayment. Check both eligibility and the usable advance, with a credible fallback.
Are these examples based on Count Ready clients?
No. They are hypothetical calculations created to explain cash flow and repayment risk. They do not show Count Ready’s product access, fees or completed client outcomes.
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Read the feedback on Count Ready’s Google profile before you decide to enquire.
The profile showed 5.0 out of 5 from 8 reviews on 29 September 2026. This is a dated snapshot; check the profile for the latest information.
See how clients describe the service
A worked example can explain the figures, but it cannot tell you how a business communicates. Read the original feedback in context and consider what you need from the conversation about your own transaction.
These are reviews of the business. They are not evidence that a particular bridging loan, sale or mortgage exit will succeed.
Bring your figures to an initial enquiry
Tell Count Ready what you want to finance, the property type and estimated value, existing secured borrowing, usable funds required, deadline and proposed exit. The first step is to establish whether your enquiry falls within the service available and what information is needed to consider it.
Use estimates where necessary and explain what remains uncertain. Do not send identity documents or detailed financial records through a general enquiry; use the secure process specified if supporting evidence is requested.