Bridging Loan

Calculator

Looking for short term finance to purchase a property?
Use our bridging loan calculator to get an indicative quote.
We will send this to your email and mobile for future reference.

 

Requirements

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Get instant quote

How To Use A Bridging Loan Calculator

The fields above make certain assumptions. The good news is that you can change the rate of interest in line with the loan to value you require using the rates mentioned above to give you a more accurate indicative quote.

 

Please note that if you enter a 12 month term for the loan the overall cost will assume that you pay interest over the full term. It is often the case that bridge loans are paid off before the full term - as mentioned above you only pay for the time you use the loan.

 

A bridging loan is secured finance and the cost of it will depend on a number of factors.

 

These factors include:

 

Loan to value - this is the ratio of total borrowing to total property value. The lower the LTV generally the lower the rate of interest you will pay on the loan. If more than one property is involved securing a bridging loan over two properties may allow you to reduce the loan to value and therefore the overall cost of the loan.

 

Property location - This is a factor, particularly for properties in more remote areas of the UK. This is particularly true of north Scotland and Northern Ireland when it comes to residential property purchase. The more remote the property the more risk there is to a lender that you may not be able to provide an exit for the bridging finance so this may be reflected in the interest rate you pay.

 

Regulated or unregulated? - If the property is for personal use then it will fall under regulated lending governed by the FCA (Financial Conduct Authority). There are fewer regulated lenders in the market so in certain situations your options may be more limited. Regulated lending is highly competitive so the good news for borrowers for loan to values below 60% the rates currently are as low as they ever have been. 

 

Legal Costs - A bridging loan transaction like a mortgage requires solicitors to complete the legal charge paperwork. The lender will have their own solicitor who will have their fees and you will also be required to have a solicitor to represent you. Solcitor costs can vary, and will depend on the complexity of the transaction.Some bridging lenders provide dual representation which can reduce the overall cost.

 

Survey fees - As with any loan secured lending on an asset the lender will generally want an independent valuation. Most UK bridging loan lenders will appoint a surveyor from an agreed panel. The cost will depend on the lender but most work to a scale based on property value.

 

How is Bridging Loan Interest Calculated?

Interest depending on the bridging finance provider can be calculated in different ways.

 

We work with lenders where you have the option of rolling up the interest on the loan so there is no requirement to service the loan.

 

This can be very attractive for cash flow. In this situation interest is added to the loan balance every month.

 

When you pay off the loan the redemption repayment will comprise of the original capital and the accrued monthly interest.

 

IMPORTANT INFORMATION: This bridging loan calculator is intended to provide you with an approximate guide only to illustrate what a bridging loan would cost.

 

For a personalised quotation please call our bridging team on 0117 959 5094 

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