Published 22 September 2022 · Last reviewed 12 August 2026
Bridging Fees – Lets talk about gross and net bridging loans costs
Many bridging enquiries involve applicants trying to understand how much cash they will receive after fees and retained interest. The amount available depends on the lender, property, transaction and charging structure. This difference between the overall facility and the usable amount is why gross and net figures must be compared carefully.
Development finance may include an initial advance and staged funding for works. Each release is subject to the lender’s assessment, valuation and agreed facility terms. The same distinction between the gross facility and the net day-one advance still matters. Our guide explains how a schedule of works is used on a refurbishment bridge.
See net-of-fees figures for your deal shape on the no-email bridging calculator.
Using more than one property as security can affect the amount available, subject to valuation, lender criteria and underwriting. Auction buyers should also allow for the contractual completion timetable; our guide explains bridging finance for an auction purchase.
Frequently asked questions about the difference between gross and net bridging loans
A) It is the overall amount a Bridging Lender lends. This total is subject to interest charges i.e. it is the amount borrowed.
To see how these gross-versus-net figures translate into real-world cost, read our breakdown of UK bridging rates and fees.
A) The amount you receive in your pocket to use. This figure is after (net) the deductions of set up fees. It may also include interest deductions for the borrowing.
A) Typical deductions may include a lender arrangement or facility fee, administration charges, legal costs and a transfer fee. The exact deductions depend on the lender and transaction.
A) Examples are Title insurance and Broker Fees, depending on the transaction there could be others.
A) Yes, some Bridging Lenders configure the bridging loan on a “retained interest” basis. This means they take the interest either in part or fully upfront and add this to the fees This sum is then deducted from the gross bridge to arrive at the net advance.
A) Paying a broker fee from the loan may reduce the administration involved, but it can also increase the amount on which interest is calculated. The effect should be considered as part of the total cost.
A) Fees vary by lender and transaction. Consider them alongside interest, legal, valuation and any other charges when comparing the total cost and the net amount available.
A) Legal work can include identity and source-of-funds checks, title review, lease and planning checks, and confirmation of any licences or building-regulation matters relevant to the property. The work required and its cost depend on the transaction.
A) The maximum depends on the property, valuation, proposed works, exit strategy, lender criteria and underwriting. Compare both the gross facility and the net amount available for your case.
Some lenders may assess the property using a restricted-sale valuation rather than the open-market value. This can affect the loan-to-value calculation and the amount available.
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- Broker fees, where applicable, are confirmed before you proceed
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- Fees and payment timing are explained before you proceed
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