The deal at a glance
You bring — your own money
£173,500
£128,500 deposit + £45,000 refurbishment
Bank lends you — day one
£161,500
Maximum the lender will provide (65% LTV)
You repay — after 12 months
£188,469
Loan + all costs rolled up inside it
Where the costs go
⏳ Added to your loan — you pay these when you refinance, not upfront
Product Fee
Lender's arrangement charge
£3,769
Admin Fee
Administration charge
£495
Indemnity Insurance
Legal protection for the property
£314
Interest — 12 months at 0.99% per month
Monthly interest totalled up — not paid each month
£22,390
Total added to loan
£26,968
💳 Paid upfront — at the point of completion
Valuation Fee
Independent survey of the property
TBC
Lender's Legal Fee
Lender's own solicitor cost
£900
Mortgage Discharge Fee
Fee for closing the loan at the end
£234
Redemption Admin Fee
Admin charge when repaying the loan
£75
Broker Fee
Fee for arranging this loan
£699
Total upfront
£1,908 + valuation
What you repay at the end of 12 months
Your 12-month journey
1
Day One — Completion
Purchase completes.
Bank releases £161,500.
You bring £128,500 deposit
+ upfront fees ~£1,908.
No monthly payments begin.
Bank releases £161,500.
You bring £128,500 deposit
+ upfront fees ~£1,908.
No monthly payments begin.
→
2
Months 1–12 — Refurbishment
You carry out the works
using your own £45,000.
No monthly loan payments.
Interest is building quietly
inside the loan balance.
using your own £45,000.
No monthly loan payments.
Interest is building quietly
inside the loan balance.
→
3
Month 12 — Refinance & Repay
Property is now improved.
You move onto a long-term mortgage.
New mortgage clears the bridge loan:
£188,469 repaid in full.
You move onto a long-term mortgage.
New mortgage clears the bridge loan:
£188,469 repaid in full.