Bridging Loan Calculator
This easy to use calculator will give you an indication of the costs of the Bridging loan including the gross loan amount that will need to be repaid at the end of the term.
Important: This calculator is for illustrative purposes only.
What Is A Bridging Loan Calculator?
Our bridging finance calculator is similar to a mortgage calculator, but instead of calculating monthly repayment figures, our calculator provides information about the monthly interest charged and the lenders facility fee. It is important to note that the monthly interest figure calculated is just the interest amount charged and does not include any capital repayment. Bridging loan interest charges can be set up so that they are either paid each month or added to the loan and paid when the loan is redeemed.
How To Use Our Bridging Loan Calculator
Using our calculator is straightforward and very quick – just follow these simple steps:
For your ease of use, we have included a full list of definitions below.
1. Enter the estimated market value of the property
2. Enter the amount of money you would like to borrow, in pounds.
3. Please select an interest rate. You can see how different rates of interest affect repayment amounts.
4. Enter the maximum number of months you will need to borrow the money for.
Note: Arrangement fee. Most lenders charge an arrangement fee for setting up the loan, this is typically 1.5-2% but can vary from lender to lender.
How Is A Bridging Loan Interest Calculated?
Interest can be calculated in different ways. The calculator works on rolled-up (retained) interest where there is no requirement to service the loan. This can be beneficial for cash flow and future planning. We work with lenders that provide both serviced interest with monthly payments as well as retained interest.
The fields above make certain assumptions. For example, if you enter a 12-month term for the loan the overall cost in the calculator will assume that you pay interest over the full term. There are many cases where bridge loans are paid off before the full term. You will only need to pay the interest for the time the loan is used.
Other Bridging Costs
Valuation Fees: This is the estimated cost if a full valuation is required on the properties offered as security. This figure may be reduced if a desktop, drive-by or existing valuation is sufficient for the lender. Fees can vary from £600-£1500 depending on the size and complexity of the property
Legal Costs: Lenders will require clients to pay any legal fees incurred in relation to arranging their loan. This fee can vary depending on the number of properties involved and the complexity of the loan. Some lenders provide dual representation which reduces the overall cost.
Telegraphic Transfer fee: £35. Lenders are charged this fee for sending the proceeds of the loan to their solicitors. They claim this chargeback from customers.
Redemption Administration Fee: £120. When the loan is repaid the lenders charge an admin fee to remove their charge of the security property.
Loan Exit Fee (0%): Some loan plans have exit fees. The vast majority of the lenders we use do not.
Packager and Broker Fees: £0. Most packagers and brokers charge, we do not
Net Loan Amount – This figure represents the amount you will receive.
Gross Loan Amount – This figure represents the full amount you will repay at the end of the term. It is calculated by adding the Net Loan Amount, interest and arrangement fee. This number will change depending on term length and if the interested is paid monthly or rolled up.
Term – This is the number of months you need the money for.
Loan to Value: this is the ratio of the total borrowing to total property value. The lower the LTV, the lower the rate of interest you will pay on the loan. If there is more than one property used in securing the bridge loan, this may allow you to reduce the loan to value and the overall cost of the loan.
Monthly Interest payment – The interest you will pay each month. This will depend on how much you borrow and the overall risk of borrowing. You can choose to pay this monthly or at the end of the term.
Rolled Up – The number of months you would like to delay paying interest.
Arrangement Fee – This is a fixed rate added onto the loan for the reserving of funds and administration costs charged to the company.
How Do I Qualify For A Bridging Loan?
The loan criteria for most bridging loans is quite simple, and are really flexible with regards to:
Income company, partnership, sole trader or individual applications
Applicant’s maximum age
Condition of any property being used as security
Using multiple properties as security
The important considerations for a bridging lender are:
The value of the security property
A viable exit route to ensure that they will be paid back
How Long Does It Take To Arrange A Bridging Loan?
Some bridging loans can be arranged within as little as 48 hours from the initial application. However, very few lenders can achieve this sort of speed, many require 2 to 3 weeks from start to finish. You can have a read at a few of our case studies here
What is your Minimum and Maximum Loan Size?
Our loans start from £50,000 and there really isn’t a maximum.
Why Use Accelerated Finance To Arrange Your Bridge Loan?
As a specialist mortgage broker, we have access to a wide range of lenders within the market, including private lenders where speed is often of the essence.
We understand the short-term finance market very well and can source the right finance for your situation. Our calculator is a useful tool to get an indicative quote. If you need further information you can contact us.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT