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Bridging Loan for Property Refurbishment 0117 313 6058

Details sort by initial rateLenderInitial rate Rate type Overall cost for comparisonMax LTVProduct feeMonthly cost Enquire
Initial rate: 0.51%
Rate type: Discounted Variable 24 months
Monthly cost: £639.19 per month
Max LTV: 60%
Product fee: £0
Overall cost for comparison: 3.7% APRC
Progressive BS logo 0.51% Discounted Variable 24 months 3.7% APRC 60% £0 £639.19 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.78%
Rate type: Variable 28 months
Monthly cost: £660.59 per month
Max LTV: 65%
Product fee: £995
Overall cost for comparison: 3.7% APRC
Yorkshire Building Society logo 0.78% Variable 28 months 3.7% APRC 65% £995 £660.59 per month get quotes Call us0117 403 4474
Initial rate: 0.79%
Rate type: Discounted Variable 24 months
Monthly cost: £661.40 per month
Max LTV: 75%
Product fee: £0
Overall cost for comparison: 3.8% APRC
Progressive BS logo 0.79% Discounted Variable 24 months 3.8% APRC 75% £0 £661.40 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.85%
Rate type: Variable 24 months
Monthly cost: £666.22 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.2% APRC
Barclays Mortgage logo 0.85% Variable 24 months 3.2% APRC 60% £999 £666.22 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.89%
Rate type: Fixed 27 months
Monthly cost: £669.44 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.1% APRC
HSBC logo 0.89% Fixed 27 months 3.1% APRC 60% £999 £669.44 per month get quotes Call us0117 403 4474
Initial rate: 0.89%
Rate type: Fixed 24 months
Monthly cost: £669.44 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.9% APRC
Progressive BS logo 0.89% Fixed 24 months 3.9% APRC 60% £995 £669.44 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.89%
Rate type: Fixed 26 months
Monthly cost: £669.44 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.0% APRC
Santander logo 0.89% Fixed 26 months 3.0% APRC 60% £999 £669.44 per month get quotes Call us0117 403 4474
Initial rate: 0.89%
Rate type: Fixed 26 months
Monthly cost: £669.44 per month
Max LTV: 60%
Product fee: £999
Overall cost for comparison: 3.0% APRC
Santander logo 0.89% Fixed 26 months 3.0% APRC 60% £999 £669.44 per month get quotes Call us0117 403 4474 Broker Only Deal
Initial rate: 0.89%
Rate type: Fixed 28 months
Monthly cost: £669.44 per month
Max LTV: 60%
Product fee: £995
Overall cost for comparison: 3.1% APRC
TSB logo 0.89% Fixed 28 months 3.1% APRC 60% £995 £669.44 per month get quotes Call us0117 403 4474
Initial rate: 0.89%
Rate type: Variable 28 months
Monthly cost: £669.44 per month
Max LTV: 75%
Product fee: £995
Overall cost for comparison: 3.7% APRC
Yorkshire Building Society logo 0.89% Variable 28 months 3.7% APRC 75% £995 £669.44 per month get quotes Call us0117 403 4474
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Representative Example:

A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.

 

The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).

 

In this example the overall cost for comparison is 3.7% APRC representative.

 

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT

Bridging Loan for Property Refurbishment

Why use bridging loans for property refurbishment

Bridging loans are generally used for property refurbishments because the property in question is unmortgageable, or because the current owner wants to raise extra money on top of an existing mortgage to renovate the house and sell it on.

This approach has become increasingly popular recently with buy to let landlords due to changes in the way tax relief is applied to their income. Previous buy to let landlords only paid tax on their profits i.e. their rental income minus the interest on their mortgage.

However, in April 2017, the amount of mortgage interest landlords could deduct for tax purposes was reduced to 75%. This will decrease a further 25% each tax year until April 2020, when landlords will be required to pay tax on their full rental income.

Many landlords are therefore choosing to renovate their buy to let properties and sell them on with bridging loans being a popular way to fund the improvements. This is because it is relatively quick and simple to get a bridging loan, even when other forms of borrowing are not available.

How to get property refurbishment bridging finance

To get a bridging loan to renovate a property, you will generally have to apply through a bridging loan broker. This is because bridging loans are normally only offered by private banks and lenders and specialised subsidiaries of high street banks, none of which tend to deal direct with the public.

To get the best deal on your bridging loan, it is highly recommended that you choose an independent bridging loan broker with access to the whole of the market. This means you will have the widest choice of available lenders and deals, giving you a better chance of finding a deal that works for you.

The cost of bridging loans

There are three main costs associated with bridging loans:

  • Arrangement fees (generally 1-2% of the total capital, paid when the loan is taken out)
  • Interest (paid monthly or rolled-up and paid when the loan term ends)
  • Exit fees (not charged by all lenders)

Interest and fees vary from lender to lender, so be sure to carefully compare both so you are completely clear about which deals offer the best value.

Find a bridging loan for property refurbishment

Need fast finance for a property refurbishment? Our free bridging loan calculator lets you find the most affordable deals from all the leading lenders, quickly and with minimal hassle.

To use the calculator, simple click on the link and put in some basic details about your borrowing needs and financial situation. We will them show you the best deals currently available so you can make an informed choice.

Need a bridging loan for property refurbishment? Get in touch with our friendly expert team of loan brokers using the contact form on the right or by calling 0117 313 6058

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Bridging Loans For Property Refurbishment Projects

Call us for a FREE initial conversation on 0117 313 6058 about your bridging finance options or request a callback.

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