How Do You Pay The Interest For a Bridging Loan?

There are 3 ways to pay the interest for your bridging loan: serviced, rolled up and retained. Serviced – You pay the interest monthly. Rolled Up – You pay all the interest at the end of your loan term. There are no monthly interest payments. Therefore, you get your initial loan on day one and all the fees and interest are rolled to the end of the term. This tends to be used when your facility allows you to make further drawdowns during the term of the loan. Retained – Your loan is for an agreed period and the interest for the term is deducted from the gross loan. Some of our lenders let you combine these options. For example, you could choose retained interest for the first six months and then switch to monthly interest.

If you need anymore information about the interest on a bridging loan or if you have a query for us, please get in touch with the RFL team.

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