Bridging Loan Calculator
Use the bridging loan calculator to provide the detail we need to offer you the best bridging loan in the UK. You will be provided an indication of the expected bridging loan rates (from 0.43%) and repayment costs. Fully FCA Regulated bridging loans 667602.
If you are struggling to obtain a quote or would like to discuss your quote, please get in touch or call us on 0116 464 5544
In bridging finance, monthly payments are not normally required unless requested. Instead the borrower receives the net loan amount and on repayment of that loan also repays any interest generated whilst the loan was outstanding.
***** Rates quoted are subject to status
****** Early repayment charges may apply on certain products
**** Prices quoted on these sheets are not liable for VAT
View the bridging loan rates table below to get an idea of what a typical loan repayment on £100,000 would be or alternatively use the online bridging loan calculator above for an accurate repayment calculation of your required bridging loan.
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The types of bridging finance products have increased in recent years along with an increase in the circumstances in which this type of short term finance can be used. Traditionally bridging loans were used to bridge the gap between a purchase of a property before the sale of an existing property. This is still the case but they can also now be used for many other reasons including to raise capital before sale, pensioner bridging loans and hard money loans.
By using the table above you can easily see how even the smallest fluctuation in terms of interest rates will affect the monthly payments provided in your bridging loan quote.
Bridging finance is available for many different circumstances. The amount you can borrow depends on the security on offer. You can combine more than one security to enable you to obtain a larger loan amount. If you have a property portfolio where the equity is spread over numerous properties, you may be able to secure on a range of the properties, enabling you to take out enough equity for your requirement.
Bridging finance can be used for purchasing property and refinance on land but only for a short period, usually up to 12 months. Short term finance can be obtained for the use of debt consolidation, business purposes such as expansion or for the auction purchase of residential and commercial property.
Our bridging finance and short term loans start from approx £10,000 and we also provide Incomplete Property Loans for those looking to renovate a rundown house.
Lenders often have minimum terms of one month but some bridging finance loans can be used for as little as one day enabling you to complete the simultaneous purchase and sale of properties over a period of a few days or hours.
Bridging loan rates are dependant on the type of property and size of the loan compared with the security available or whether it is on a first or second charge basis. Rates presently start at 0.43% and this is the rate most used by us.
Please note that our Bridging Loans Calculator table is provided as quick reference tool. In order to get the actual rates please contact our team as each bridging loan quote we offer is completely different to the next, as products are tailored towards an individual’s borrowing circumstance.
What is a bridging loan?
Bridging Loans could be described as relatively short term “interest only” loans, usually setup for a maximum term of 12 months in length and normally do not require monthly payments, do not have exit penalties if repaid within the agreed term and are often used when other more traditional forms of finance such as mortgages are not available. There are two types of “traditional” bridging loans, open bridging loans and closed bridging loans, both of which are explained on their retrospective pages.
On most bridging loans interest is normally only liable for the amount of time that the loan is used i.e. if a loan is arranged for 12 months but repaid after 3 months and 6 days, interest is usually charged and repaid on the loan for the 3 month and 6 day period and not for the full 12 months.
The reason that applicants are refused traditional finance or where traditional finance is not suitable are varied and the most common bridging loan example would be:
- because the applicant is older than the new acceptable age limits for mortgages
- the applicant may be asset rich but cash poor i.e. not enough income proof to pass the required affordability calculations needed to obtain a mortgage
- the applicant may have poor credit which is not acceptable for mortgage finance
- the property may be classed as not standard security for a mortgage i.e. the property could be without a kitchen or bathroom or generally in need of much modernisation making it not habitable. In which case an incomplete property loan is the ideal choice for you.
- the seller may only accept offers from buyers who are chain free such as cash buyers or buyers with bridging finance
- the finance could be required for a development opportunity
- it may be that the finance is needed for additional borrowing such as a 2nd charge
- the funds may be needed urgently or for a specific requirement which are not allowable in the world of mortgage finance, such as borrowing for an urgent business need
- the money may be just for a flexible or short term requirement
- the borrower wants minimal fuss
- the borrower wants to purchase a new property but the deposit is not yet liquid and tied up in another property yet to be sold
Who would qualify for a bridging loan?
- Clients who can or cannot prove income
- Clients with an excellent or impaired credit rating
- Clients who are employed, self-employed or not employed
- Companies or individuals
- Anyone with equity in their property or an available cash deposit
A Recent Bridging Loan Case
UKPF were approached by the client as she was looking to borrow sufficient funds to enable her to complete renovation work on her property and repay her current credit card debt. The credit card debt had been obtained paying for the renovation work already carried out. The current residential property had sufficient value and was unencumbered and the funds were expected to significantly increase the renovated value.
The work being carried out was to bring the property up to a habitable standard as it wasn’t when the client approached us. The client was living in a static caravan on site. The current residential property was used as security for the loan and the client planned to sell the property after the work had been carried out and either downsize into a smaller permanent residence or purchase another development property to further profit.