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.
Bridging Loans from £50,000 to £15 Million
How is monthly bridging loan interest rates calculated?
The interest rate you will pay for a bridging loan facility will be typically based on the loan to value. This is the same as a standard mortgage.
So the more you borrow relative to the property value the higher the rate of interest charged will be.
The calculator will ask you to input any outstanding mortgage balance you have which including the additional bridging finance you require is required to determine the total loan to value (LTV).
By including more than 1 property as security you may be able to reduce the LTV to qualify for a lower loan rate.
What bridging loan interest rates are available?.
If you are borrowing 40% or less of the property value we can access rates of 0.43% pm and in some cases lower depending on your situation.
For loan to values (LTVs) between 41% and 50% we can access rates of 53% pm.
Between 51% to 65% typically you are looking at an interest rate of 0.63% pm.
Between 65% to 70% the interest rate would typically be 0.69% pm.
And between 70% to 75% you are looking at a rate of 0.84% pm.
Rates are available up to 80% LTV - contact us for details.
Please note that property location can be a factor and that loan size can make a difference.
For large short term loans over £1 million we can often arrange preferential terms. For some deals we can access rates below 0.30% pm.
How is bridging loan interest calculated?
Lenders have different ways of calculating interest. We work with lenders where you have the option of rolling up the interest on the loan.
This means servicing monthly interest is not required.
This can be very attractive for cash flow purposes.
The interest is added to the loan balance every month.
When you pay off the loan the redemption repayment will include accrued interest.
What are the fees?
There is typically a 2% lender arrangement fee for providing a short term finance facility. For some specialised higher risk non regulated lending a lender may charge an exit fee as well.
A lender will want to get an independent valuation of the security property (ies) to ensure that the loan to value is correct. The fee for this will depend on the size of your property (ies). There are also legal fees that are incurred as with any transaction where a debt is being secured and a legal charge is being taken. Some bridging lenders we work with are able to provide reduced valuation fees for properties valued under £1m.
We charge a broker fee for arranging and helping to set your facility up. For some lenders we have exclusive terms which means we can offer you preferential rates depending on your requirements.
We can also help with exiting the bridge if you require longer term finance through a mortgage. For residential bridging involving property you live in or are intending to live in, if a mortgage is required to exit the bridge we will obtain a decision in principle to lend from a mortgage lender to ensure future mortgage repayments are affordable.
For regulated property finance we work with market leading FCA regulated lenders.
Can I pay the bridging loan off early?
There are no penalties on the bridge loans we offer for paying the loan off early.
Most loans are set up typically for 12 months with a minimum loan term of 1 month. A 12 month term is the maximum period for a regulated loan.
If you pay off your loan after 4 months you will only pay for the loan plus interest for 4 months.
How to use our 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.
The quote will be emailed to you and sent by SMS if you provide a mobile phone number.
If you need to move quickly then we advise calling us directly. How quickly you get funding will depend on your requirements and whether the loan is being secured on regulated or non regulated terms. Non regulated finance can be potentially secured very quickly but legal fees and valuation costs will be higher reflecting the urgency required.
IMPORTANT INFORMATION: This bridging finance calculator is intended to provide you with an approximate guide only to illustrate what a bridging loan would cost.
To obtain a personalised quotation please call our bridging loans team on 0117 313 6058 or request a callback
Fair Mortgages Ltd is registered in England and specializes in sourcing property finance solutions.