Find out how much a bridging loan will cost you. Calculate your bridging loans interest, with the loan amount, the loan-to-value & the fees etc. Make NO monthly payments with a retained interest bridging loan. The interest is paid at the end of the term when the loan is redeemed. There are NO early repayment penalties, & if you redeem the loan early the remaining interest is not incurred.
LOW rates from only 0.55% pm
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The results produced by this bridging loan calculator are intended only to provide a guide to the costs associated with this type of short-term lending. The interest can be paid monthly (on a serviced basis), or can be rolled-up or retained with no monthly instalments required during the loan term.
Our bridging loan calculator displays results on the basis of rolled-up interest, and allows for compounding; many other calculators don’t do this. For example, on a loan of £100,000 for 12 months at a monthly interest rate of 0.5% pcm, the total interest incurred would be £6,169. Some other calculators display the result on the basis of a simple interest calculation as £6,000, which is generally not accurate for bridging loans. To see how the figures are calculated click the ... BRIDGING LOAN EXAMPLE >
There are broadly 3 methods of paying the interest on a bridging loan, defined as follows:
1. Rolled-up interest - There are NO monthly payments to make with a rolled-up interest bridging loan. The interest is ‘rolled up’ and paid as a lump sum at the end of the loan term. With rolled-up interest the lender does not charge interest on the interest already added to the loan.
2. Retained interest - Again there are NO monthly payments to make with a retained interest bridging loan. The interest is added to the loan and paid at the end of the term when the loan is paid back. Where retained interest differs to rolled-up interest is that the lender charges interest on the interest already added to the loan, which is considered to be controversial as this is effectively a double whammy.
3. Serviced interest - Making monthly interest payments is referred to as a serviced bridging loan. The interest payments are calculated form the gross loan amount which includes the lender's facility fee, which is usually 2%.
In most cases there are no early repayment penalities. For example if your loan term is 12 months, but you redeem the loan after 4 months you will only incur 4 months worth of interest.
The large majority of bridging loans are taken out on a rolled-up or retained interest basis. Our bridging loan calculator displays results on the basis of rolled-up interest.
Interest rates will vary depending on the loan to value (LTV) percentage. The maximum LTV is generally 80% but can be increased if additional security is provided.
Interest rates start from 0.55, and are dependant on a number of factors such as the loan to value. For instance lower LTV's will attract lower interest rates. Other factors effecting the interest rates can also include the property location, and property type (residential, commercial, semi-commercial, land, etc.)
With rolled-up and retained interest bridging loans the loan plus any interest cannot exceed the lender’s maximum LTV criteria.
Loan-to-value is calculated from your loan requirement plus any current outstanding borrowings as a percentage of the total security value. Typically, overall loan to value should not exceed 75%, however this can be increased with additional security.
There are generally no up-front fees to pay for your bridging loan.
Once a bridging loan has been approved for you and you have accepted the terms offered, you will be required to pay a valuation fee in order to proceed with the loan. Legal fees will follow, and administration fees are usually added to the loan amount.
Each bridging loan application is dealt with on a case by case basis.
To provide an accurate bridging loan quotation EquityOne Finance Ltd will require the applicant to provide all the necessary detail to ensure qualifying criteria, and to be able to provide a detailed terms of all costs, fees, and interest rates payable by the borrower. Please note that fees such as valuation, admin, and legal fees can differ between alternative lending sources.
If you wish to apply for a decision in principle, click the link below.Apply for DIP
There are no upfront fees, no credit search, & you are under no obligation to proceed.
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A bridging loan could be completed a few days.
This does however vary depending on the nature and complexity of the case. A decision in principle can usually be provided quickly within a couple of hours.
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To obtain a credit-backed decision in principle please click below and complete our secure online DIP form todayApply for DIP
All types of briging & development finance available from £50,000
100% LTV also available with additional security property
The very latest low bridging loan rates at November 2023
Lowest bridging rates at November 2023
Excellent job, very efficient ...5/5
“We would like to thank you for all your hard work. I realise we have been quite full on with the pressure of trying to redeem our mortgage within a week. We know that you have gone above and beyond your job role. I would like EQUITYONE to realise your worth. If I owned my own business I would definitely have you on my payroll. Excellent job, very efficient, working at pace to my requested dead line. This has been recognised and appreciated"
That’s super helpful ...5/5
“Thanks so much for the update. Really appreciate you keeping us informed, it makes a world of difference to me and my wife. It reinforces our confidence that everything is in hand for a quick completion on Friday. That's super helpful and really efficient, thanks again"
Can’t thank you enough ...5/5
“Thank you so much for all you have done to help us, you have no idea how grateful we are. You've helped us to not only purchase our forever home but to also provide a lovely family home for our children to grow up in. I can’t thank you enough. You are fabulous at what you do and your constant reassurance, help and guidance made the whole thing a lot less stressful. All the best, & thank you again”
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