Bridging Loan For Auction Property
Looking for short term finance to purchase a property at auction?
Use our bridging loan calculator to get an indicative quote. We will send this to your email and mobile for future reference.
How is monthly bridging loan interest rates calculated?
The interest rate you will pay for a short term finance (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 auction property value the higher the rate of interest charged will be.
What bridging loan interest rates are available?.
If you are borrowing 40% or less of the auction 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 43% 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 loans over £1 million we can often arrange preferential terms. For some deals we can access rates below 0.40% pm.
How is bridging loan interest calculated on an auction property?
Auction finance 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.
Can I pay the bridging loan off early?
There are no penalties on the auction finance 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.
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 auction finance 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.
IMPORTANT INFORMATION: This auction finance calculator is intended to provide you with an approximate guide only to illustrate what a short term loan would cost.
To obtain a personalised quotation please call our short term auction finance team on 0117 313 6058 or request a callback