Use the bridging loan calculator to provide the detail needed to allow us to get the best rate. You will be provided an indication of the expected rates which start from 0.39% and the repayment costs. We provide fully FCA Regulated 667602.
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If you are struggling to obtain a quote or would like to discuss your quote, please get in touch or call us on 0116 464 5544 In bridging finance, monthly payments are not normally required unless requested. Instead the borrower receives the net loan amount and on repayment of that loan also repays any interest generated whilst the loan was outstanding. |
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***** Rates quoted are subject to status
****** Early repayment charges may apply on certain products **** Prices quoted on these sheets are not liable for VAT |
The table below provides examples of what the bridging loan repayments would be on an example loan amount of £100,000 which is a popular amount for bridging finance. Alternatively use the bridging loans calculator above for a rough calculation of your loan. For an accurate quotation with a breakdown of costs please speak to one of our experienced advisors so they can inform you of the rate of interest and any other questions you have.
Interest Rate | Monthly Interest |
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0.39% | £390 |
0.70% | £700 |
0.75% | £750 |
0.85% | £850 |
0.95% | £950 |
1.00% | £1,000 |
1.05% | £1,050 |
1.10% | £1,100 |
1.20% | £1,200 |
1.25% | £1,250 |
1.50% | £1,500 |
The reasons for bridging finance have increased over recent years. Traditionally bridging loans were used to bridge the gap between purchasing a property before the sale of an existing property. This is still the main purpose, however, there are now a number of reason as to why short term bridging finance is beneficial.
Lenders often have minimum terms of one month but some bridging loans can be used for as little as one day, enabling you to complete the simultaneous purchase and sale of properties over a period of a few days.
Bridging loan rates are mainly based on the loan to value. The rates differ with all lenders. Our experienced brokers will help you to find the lowest cost option based on the security on offer, the loan amount required, whether the loan is a first or second charge etc. Use our bridging finance calculator to work out your costs!
A Bridging Loan could be described as relatively short term “interest only” loans, usually setup for a maximum term of 12 months in length and normally do not require monthly payments. There are no exit penalties if repaid within the agreed term.
Interest rates are normally only liable for the amount of time that the finance is used. When a loan is arranged for 12 months but repaid after 3 months and 6 days, interest is usually charged and repaid on the loan for the 3 month and 6 day period and not for the full 12 months.
The reason that applicants are refused traditional finance or where traditional finance is not suitable are varied and the most common bridging loan examples would be: