Large Loan Calculator

How to Use Our Large Loan Calculator

Our calculator is a powerful tool intended to provide an approximate guide to what a large bridging loan might cost. For a fully personalised quote, we always recommend speaking to our team.

When using the calculator, please note:

• Interest Calculation: If you enter a 12-month term, the calculator will estimate the cost over the full period. However, bridging loans are flexible; you only pay interest for the time the loan is active. If you repay it in 6 months, you only pay 6 months of interest.
• Minimum Term: The minimum term is one month. After the initial 30 days, interest is typically calculated daily, so you only pay for the exact time you have the loan.
• Loan to Value (LTV): This is the ratio of borrowing against the total value of the property or properties used as security. A lower LTV generally results in a lower interest rate, as it represents less risk to the lender. Securing the loan against multiple properties can be an effective way to reduce the overall LTV and, therefore, the cost.

Book Appointment

Why Bridging Loans are an Effective Large Loan Solution

When the need is for a substantial sum (£1m, £5m, £25m or more), bridging finance stands out due to its unique structure, which is perfectly suited for high-value transactions.

• Speed and Agility: Large opportunities, such as acquiring a prime property or a development site, often come with tight deadlines. A bridging loan can be arranged in as little as 5-7 working days, whereas a large mortgage could take months. This speed allows you to act like a cash buyer, providing a significant negotiating advantage.
• Focus on Assets, Not Just Income: Traditional loans are heavily dependent on affordability checks based on income. For High Net Worth Individuals (HNWIs) or businesses with complex or international income streams, this can be a bottleneck. Bridging finance is secured against property assets, focusing on the quality of the security and the exit plan rather than your monthly payslip.
• Flexibility for Complex Scenarios: Large loans often involve complexities such as auction purchases, funding property development before planning is granted, or releasing capital tied up in illiquid assets. Bridging finance is designed to handle these non-standard situations where traditional lenders would decline.

Exploring Other Large Loan Alternatives

While bridging is a powerful tool, it's a short-term solution. Depending on your circumstances, other products can also be used to raise significant capital:

Traditional Mortgage / Remortgage: For long-term property ownership, a mortgage is the most cost-effective solution, offering the lowest rates. A remortgage can release substantial equity from your existing property. However, the application process is slow and subject to strict affordability and credit checks, making it unsuitable for time-sensitive opportunities.

Second-Charge Mortgage: This is a loan secured against your property that sits behind your main (first-charge) mortgage. It's an excellent way to raise large sums for purposes like home improvements or debt consolidation without disturbing a favourable fixed-rate on your primary mortgage. Rates are higher than a first-charge mortgage but often lower than unsecured loans.

Equity Release (Lifetime Mortgages): For homeowners aged 55 and over, equity release can unlock a significant, tax-free lump sum from your primary residence. With a lifetime mortgage, there are typically no monthly repayments, as the loan plus rolled-up interest is repaid from the sale of the property when you pass away or move into long-term care. This is a long-term solution designed for funding retirement, not short-term investment projects.

Book Appointment

Understanding the Costs Associated with Large Loans

Securing any form of large, property-secured loan involves several costs. It's crucial to factor these into your budget:

• Lender Fees: Lenders typically charge a facility or arrangement fee, often around 2% of the gross loan amount. This fee can usually be added to the loan itself.
• Legal Costs: Both you and the lender will require representation from solicitors to handle the legal paperwork and the placing of a legal charge on the property. For complex or high-value transactions, these fees will be higher. Some lenders offer dual representation, which can help reduce costs.
• Valuation / Survey Fees: A lender will always require an independent valuation of the property used as security. The cost depends on the property's value and location. For some properties under £1m, a cheaper and faster "desktop valuation" may be possible.
• Broker Fees: A professional broker will charge a fee for their service in sourcing, negotiating, and managing your application. At Clifton Private Finance, we charge a fee typically starting from £995 for arranging finance on your behalf.
• Exit Fees: Most lenders we work with do not apply an exit fee. If they are charged, it is usually on higher-risk transactions and will be made clear in your loan offer.

Next Steps: Getting Your Bespoke Quote

We know the short-term finance market intimately and can find the right large loan solution for your situation. Our calculator is a useful tool to get an indicative quote, but for substantial and often complex requirements, we recommend talking to us directly.

As an independent company regulated by the Financial Conduct Authority, we have access to the best loan rates from both authorised lenders for regulated transactions and private lenders where speed and discretion are paramount. We can arrange long-term finance to replace a bridging loan, or structure a deal from the ground up.

This calculator is intended to provide you with an approximate guide only. For a personalised large loan quotation, please call our team on 0117 959 5094.

Get started with our calculator

How much are you looking to borrow?

Get Started Now