Bridging Loan Rates Comparison & Calculator

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Our simple-to-use bridging finance 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 LTV (Loan to Value).

Read on below to find out more information on bridging loan rates, check out the latest products or read through our FAQs.

Use this calculator to work out the likely cost of your bridging loan.

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Latest Bridging Offers

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Product BL0001 - Apply Now
Interest Rate
0.44%
Lender Fee
1.00%
Max LTV
55%
Security Type
Residential
Min-Max Loan
£250,001 - £50,000,000
Max Term
18 Months
Regulated Accepted?
No
Product BL0002 - Apply Now
Interest Rate
0.44%
Lender Fee
1.50%
Max LTV
55%
Security Type
Residential
Min-Max Loan
£100,000 - £250,000
Max Term
18 Months
Regulated Accepted?
No
Product BL0003 - Apply Now
Interest Rate
0.47%
Lender Fee
1.00%
Max LTV
50%
Security Type
Residential
Min-Max Loan
£250,000 - £50,000,000
Max Term
12 Months
Regulated Accepted?
Yes
CLICK HERE TO COMPARE MORE MARKET LEADING PRODUCTS

Want to Know More…?

Read on below or use the following panels to look for more information on bridging finance.

How Do I Use the Bridging Loan Calculator?

Our bridging loan calculator is designed to make the process of finding out the likely costs of taking out bridging loans simple. There are countless lenders out there, all of whom will charge different interest rates and arrangement fees.

To use the calculator, fill in each box as accurately as possible and press calculate to receive your results instantly.

  • Property Value – This is the value of the property to be used as security for the loan.
  • Outstanding Mortgage – This box only needs to be completed if the mortgage is not going to be repaid by the bridging loan. If there is a mortgage outstanding that will be repaid in full, please leave the figure as ‘0’.
  • Loan Amount Required – This is the net loan required – the amount you need to receive before any fees or interest are added to the loan.
  • Interest Rate – This is the interest rate charged for the bridging loan. The calculator, as with most bridging loans calculates based on a monthly interest rate.
  • Lender Arrangement Fee – This is the fee charged by the lender for arranging the facility. Input the percentage charged by the lender.
  • Lender Exit Fee – Some lenders charge ‘exit fees’ on their facility. Again, this is calculated from a percentage, so please input the percentage charged.

Bridging Loan Rates & Fees – What Figures Should I Input?

Although our calculator will always provide accurate figures, the output will only ever be as realistic as the details that are input.

When considering the terms to input, it is realistic to use the terms as set out below, assuming your circumstances are straightforward and your credit history clean. Of course, bridging loan lenders are generally flexible and will allow for some complications, but if your circumstances are particularly complex, it may be worth calling us for a quote as realistic terms may be hard to predict.

Unregulated – Residential Property

Loan to Value55%65%75%
Interest Rate0.44%0.54%0.64%

Regulated – Residential Property

Loan to Value55%65%75%
Interest Rate0.48%0.59%0.75%

Commercial & Semi-Commercial

Loan to Value55%65%75%
Interest Rate0.65%0.70%0.99%

Land

Loan to Value55%65%N/A
Interest Rate0.75%0.95%N/A

In general, for a straightforward application, it is safe to use the monthly interest rates above when using the calculator. Of course, not all our applications are written on the products above, so they are best used as a guide only.

Lender Arrangement Fee & Lender Exit Fee

Most bridging loans are subject to a lender arrangement fee of 2% of the loan amount. When using our bridging finance calculator, this is generally the safest figure to input.

As an independent bridging loan broker, we will always do our best to reduce the cost of finance where possible, and as such, we may well be able to negotiate a discount to 1.5%, or even 1% on occasion.

Reductions in lender arrangement fee are more likely the larger the loan is. Lender exit fees are more difficult to quote, as they tend to vary from lender to lender. As we’re always looking to reduce your costs, there is a good chance we will be able to fund your application without a lender exit fee.

Understanding Your Results

Gross & Net Loan

The calculator refers to gross loan and net loan figures. Although this can seem confusing at first, it is quite simple.

  • The gross loan is the total amount borrowed including all fees, charges and rolled up interest.
  • The net loan is the amount that is released to you and does not include any fees, charges or interest.

When calculating how much money you will be able to use, use the net loan. When calculating how much money you will repay to the lender, use the gross loan.

Total Interest

Total interest is simply the amount of interest charged over the course of the loan. This is commonly added to the loan and paid when the bridging loan is repaid. Alternatively, it can be deducted from the loan, meaning the net loan is reduced by the cost of the interest.

Loan to Value (Net Loan)

The loan to value (net loan) is designed to tell you what the loan to value of your borrowing is. Loan to value is a tool used by lenders to express the ratio of the amount borrowed as a percentage of the property value. This figure is important, as often the maximum loan will be restricted by the maximum loan to value available.

How Much Can I Borrow?

The maximum loan to value we can generally achieve depends on different property types. We can generally achieve the following:

SecurityMax LTV
Residential (Unregulated)80%
Residential (Regulated)70%
Commercial75%
Land with Planning65%
Land Without Planning50%

Bridging Loan Calculator Explained

Our bridging loan calculator makes working out your total costs simple. It functions in a similar way to a standard mortgage calculator but allows you to analyse both your monthly interest and total costs.

It’s worth noting that we do not have the option to include a broker fee on our calculator. This is because we never charge a broker fee for loans over £100,000. If you’re considering taking bridging finance through another broker, you may need to add their upfront fees and broker fees to your total costs.

We will never charge you upfront application fees for arranging a bridging loan and never add hidden charges to your loan.

FAQs

How Long Do Bridging Loans Take To Set Up?

Bridging loans can be arranged very quickly, sometimes within as little as 48 hours. On average, applications can complete 10-14 days. Some lenders may take a little longer, with applications taking up to 21 days. This should be covered upfront to ensure your completion deadline is realistic.

What Are Typical Bridging Loan Rates?

Rates start from 0.43% per month, for applications up to 50% loan to value. A typical rate is hard to give as each loan is different, however, many of our bridging loans are offered at 0.48% per month or less.

For more complex applications or loans at higher loan to values, rates will increase. Despite this, we are usually able to arrange loans against residential properties at 0.85% per month or below.

Who Would Qualify For A Bridging Loan?

Loans can be arranged for most applicants due to the increased flexibility of bridging finance lenders. There are lenders out there for almost any situation, regardless of credit history, age or the security offered.

Should I Work With A Bridging Loan Broker?

This depends on your circumstances and what you’re looking for. Bridging loan brokers can quickly compare the market to secure you the best quote, saving you time and money, but may charge large fees for their services (although we don’t charge broker fees for bridging loans).

An efficient broker will save you time and can make the process easier to manage, an inefficient broker may make the process slower and more difficult.

The bridging finance market is very specialist, so it’s important that you only enlist the help of an expert if you do choose to work with a broker.

Regardless of the route taken, we always recommend that you don’t hand over upfront fees to a broker.

What Else Should I Consider?

Besides securing the best rates and fees, always make sure you’re going to be working with a reputable lender. Things don’t always go according to plan and this must be considered upfront.

Before completing on a bridging loan, make sure your exit is realistic. You should also check what happens if you’re late repaying your loan. Some lenders charge very high default rates and may even apply these back to the start of the loan. This should always be checked upfront to ensure the risk to yourself and your family remains at a minimum.

Comparing us with Other Brokers

We are totally transparent in our product offerings. ABC Finance Ltd. never charge broker fees for loans over £100,000 and will never charge you upfront application fees or add hidden charges to your loan. We can also offer you expert advice and recommend the most suitable product for your needs.

Alternatively, why not head over to our comparison page to check the latest rates, select your own bridging finance product and apply online.

about-the-author-gary-hemming

About The Author

This content was produced by our Commercial Lending Director, Gary Hemming. Gary has over 15 years’ experience in financial services and specialises in bridging loans, commercial mortgages, development finance and business loans. He is widely respected in his field and regularly provides expert commentary for specialist trade publications, specialist business press as well as local and national press.

Gary Hemming CeMAP CeFA CeRGI CSP  -  
Commercial Lending Director