Our calculator is designed to help you get a picture of costs involved in bridging and is not an accurate representation for your specific needs. If you would like a thorough breakdown of options tailored to your needs then please give us a call or email the enquiry.
Instances of when a bridging loan may be right for you
- Bridge the gap between buying a new property and the sale of an existing one.
- Raise capital before sale for reasons such as refurbishments. (Then market the property at a higher price).
- If your dream home is up for sale and has many interested parties but you’re still waiting for your existing property to sell then a bridging loan would be ideal to secure it.
- If you want to purchase a commercial premises, refurbish and/or change it’s use before switching to a commercial mortgage as a feasible exit strategy
Associated risks with bridging loans
- Interest rates are relatively high and there are admin fees usually.
- You need to be 100% certain of receiving a mortgage approval. Otherwise you could find yourself with a high interest bridging loan without the means to repay it.
Bridging calculator terms explained
Gross loan amount – The gross loan amount includes the required borrowing combined with the added interest over the full term and arrangement fees.
Net loan amount – The net loan amount is the sum paid to you or the seller on completion of the loan after all of the fees and costs are taken into account.
Exit fee – The charge to terminate and repay the loan earlier than the term set out in the initial proposal. This can be an additional part to the sum paid back when the loan term finishes. Also known as a redemption charge or loan repayment fee they typically represent a small percentage of the loan.
Rolled-up interest – Rather than paying the interest of a loan incrementally throughout its term, it is ‘rolled up’ (added together) and put on top of the balance that is to be paid back at the end.
Service interest – The more common products in bridging finance has the client repay interest monthly over the loan term.
The calculator can provide the differences to expect when choosing monthly interest payments (serviced) or having it rolled up.
We do have relationships with lenders that consider clients with adverse credit.
The loans can range from £10,000 – £500m+
The calculator provided is intended to give you an estimate of costs applied to a short-term bridging loan. Please be aware that all lenders differ in criteria, interest rates and even the way rates are calculated. For a more accurate representation of the best deals for you, simply contact us on the appropriate office number at the top of the page or fill in one of our on-line enquiry forms so we can discuss it further.
Guideline bridging rates: (Subject to status and individual circumstance)
|Loan to Value||Interest Rates|
|Up to 50% LTV||0.49%|
|Up to 65% LTV||0.59%|
|Up to 70% LTV||0.69%|
|Up to 75% LTV||0.75%|
*Interest rates below 0.49% may be achieved in some circumstances through a private bank.
*There must be an exit strategy in place to pay off the bridge and loan capital.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR A LOAN SECURED AGAINST IT.
Your Commercial Finance is a trading style of Your Mortgage Broker (Cardiff) Ltd which is directly authorised and regulated by the Financial Conduct Authority (FCA).
Our FCA registration number is 765678. You can find us on the FCA register at https://register.fca.org.uk/.
The FCA does not regulate some forms of buy-to-let, overseas and commercial finance and taxation advice.