Bridging Loan Calculator 2017-08-11T15:41:56+00:00

Bridging Finance

  • Quick funds
  • 1st, 2nd & 3rd charge loans
  • All types of property considered
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Bridging Loan Calculator

Use our free bridging loan calculator to quickly determine the likely costs of taking out bridging finance. Alternatively, for free no obligation advice, use our quick enquiry form or call 0800 088 6008 to speak to one of our bridging finance experts.

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  • Light, medium & heavy refurb
  • Auction conditions met
  • No maximum age
  • 100% available with extra security
  • Chain break
  • Unmortgageable properties
  • Regulated and unregulated
  • £25,000 – No maximum loan
  • Adverse credit
  • Rolled interest (no monthly payments)
Click Here To Enquire Online Now

Securing A Bridging Loan From ABC Finance

Established in 2000, regulated by the FCA and a silver associate of the Association of Bridging Professionals, ABC Finance Ltd is the sensible choice for anybody who is looking to take out a bridging loan.

Enquire now and one of our bridging experts will compare lenders across the whole market for you and send you the best terms, within 2 hours.

Our service is totally independent, meaning our job is to secure you the best possible deal.

The ABC Finance Bridging Loan Calculator

Our simple to use bridging calculator is designed to quickly work out the likely costs of bridging loans. On top of the interest, the calculator will also allow quick calculations of fees and loan to value (LTV).

For information on likely rates and fees read on below. Alternatively, for full details of the products available to you, get a quick quote by enquiring online or talking to one of our bridging loan experts. We will usually be able to provide you with full terms within 1 hour of your enquiry.

Bridging Loan Rates

Our simple to use bridging calculator is designed to quickly work out the likely costs of bridging loans. On top of the interest, the calculator will also allow quick calculations of fees and loan to value (LTV).

For information on likely rates and fees read on below. Alternatively, for full details of the products available to you, get a quick quote by enquiring online or talking to one of our bridging loan experts. We will usually be able to provide you with full terms within 1 hour of your enquiry.

  • The type of property offered as security
  • Credit history of the applicants
  • Loan to value

Bridging loan rates are lower than ever, with rates starting from 0.44% for the lowest risk applications.

Rates from 0.44% to 1% are realistic for the majority of bridging loans secured against residential property. When calculating the cost of a commercial bridging loan, rates of between 0.75% and 1.25% per month are realistic.

Bridging loans can also be secured against land – with or without planning permission. When using the bridging loan calculator to work out costs for this situation, rates of between 0.9% and 1.35% per month would generate the most accurate figures.

Retained Interest

Interest is often ‘rolled-up’ or retained. This means that during the term of the loan, no monthly repayments are due. The interest is added to the loan by the lender and is repaid when the loan is repaid.

Retained interest can be appealing as the luxury of having no monthly interest payments is attractive and can ease cash flow. The key consideration is affordability – would making the repayments be affordable. If not, we recommend rolling up the interest where possible.

Where both rolled-up or serviced interest is comfortable, our expert bridging loan advisors will help you to understand the benefits of each route.

Fees

Bridging loan lenders charge an arrangement fee. Most applications are charged 2% of the loan amount. Some lenders are now starting to reduce their fee, with some going as low as 1% for a number of applications. As the work involved in completing a new loan is similar regardless of the amount borrowed, discounted fees are more common in larger loans.

In addition to the lender arrangement fee, some lenders will charge an exit fee. This fee tends to vary and will either be charged as a percentage of the loan or 1 months interest. The percentage of the loan route will usually be between 1-2% of the amount borrowed, with 1% far more common.

Term

Bridging Finance is usually considered a short-term product. Most loans are for between 1-12 months; however, there are lenders who will offer terms of up to 2, or even 3 years. When calculating your costs, a term of up to 12 months is usually realistic.

Generally speaking, it would not be advised to take out bridging finance for 2 years as the interest rate is higher than other property-backed lending. If possible, a shorter term would be ideal, with a switch to a mortgage coming as soon as reasonably possible.

Loan To Value

Maximum loan to values (LTV) depends on the client profile, the quality and location of the security property and the intended exit.

The highest LTV is usually reserved for bridging loans secured against residential properties. In these circumstances, 80% LTV is usually the maximum. It is worth noting that as LTVs increase, so do interest rates due to the increased risk to the lender. Taking out a bridging loan against a residential property will usually be much cheaper at 75% LTV or below, with the lowest rates usually available up to 60% LTV.

Commercial bridging loans usually have a lower maximum loan to value. As there are so many different types of commercial property, different properties will have different maximums. As a general guide, the absolute maximum commercial bridging loan would be 70% LTV.

When looking to secure only against land, either with or without planning permission, a maximum of 65% LTV is usually realistic.

Applying For A Bridging Loan

  1. Enquire online or call us on 01922 620008. One of our expert advisors will talk through your circumstances and offer initial terms on the best bridging loan available to you.
  2. We will send out a decision in principle within 1 hour outlining the terms available from the best bridging loan companies including any fees and charges that may be payable. We sense check every application upfront to make sure the application will fit the lender and that completion within your required timescale is realistic.
  3. Your application can now be submitted to the lender. If you’re happy to proceed, we spend time ensuring you understand the product and charges. We help you to collate the information needed to submit your full application.
  4. We would then instruct the valuation (if one is needed on your application) and legal process as soon as the lender is happy with the information received. In cases that are less urgent, we are able to delay the legal work until you are happy with the results of the survey.
  5. Once this work’s done you are free to draw down on your new bridging loan and complete on your property purchase/refinance.
  6. To find out more about bridging loans or to get a personalised quote, enquire online now or call us to talk to an advisor. Our team of experts will be able to assess your application quickly and provide you with full written terms.

Purchase or refinance
including rebridging a bridge

Most properties accepted
including residential & commercial

Fast turnaround times
important for auction purchases

Refurbishment accepted
light, medium or heavy

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