Why Use Our Bridging Loan Calculator?
Our bridging loan calculator is designed to show indicative costs only, they are not legally binding in any way as each case is based on its own circumstances.
In order to get more accurate calculations, you will need to speak to one of our expert bridging loan brokers who can give you indicative rates within 2 hours of application.
With bridging loans from £10,000 – £250 million available, our brokers can provide fast, short term finance to help with the purchase of property or land.
Our bridging finance is usually offered with 1 to 12-month terms, and most applications complete anywhere between 5 and 14 days.
Bridging loans are used to bridge the gap between property transactions and can be useful when cash flow is an issue, but assets are not, or when the property you’re wanting to purchase is in need of refurbishment and is unable to secure a mortgage until works are complete.
Expert bridging calculator for simple and complex loans
There are many other situations where a bridging loan is suitable, and due to the speedy nature of the financing
and simple application process it is often an appealing option.
Some common scenarios where a bridging loan calculator can be used to get figures for:
- Property Auction purchases
- Raising capital for a development opportunity
- Self-build projects
- Purchasing a new property, with the deposit
required being tied up in another property awaiting sale
- The seller is looking to only accept offers from
cash buyers or those not involved in a chain
- Preventing repossessions
Bridging loans can become complex with different criteria requirements from each lender. Our brokers have many years of experience dealing with bridging loans across a variety of situations.
What is a bridging loan calculator?
The lender will input data like the net amount, term length, details of your deposit, and security, and the calculator will generate a quote. This includes the interest costs and any other fees.
Some lenders use internal calculators for calculating how much interest they will charge. This is always done on an individual basis. They also have separate tools to help you bridge mortgages.
What are the different types of bridging loan calculators available?
Different lenders use different bridging finance calculators depending on how they calculate interest. This is why there might be some variation in the numbers that they return. Multi-functional calculators can provide information on interest rates and estimates for the total cost.
Calculator for the cost of a bridging loan
These calculators are used to calculate the total cost of a bridge loan. The total loan amount, accrued interest, and any additional fees that the borrower will have to pay, including arrangement, valuation, and legal fees for loan security.
The standard calculator will give you a quote based on the main details of the deal such as your deposit amount, term length, and exit strategy. However, some lenders use sophisticated calculators that account for other variables.
Although rates, criteria, and the way that quotes are calculated in Scotland are generally the same as elsewhere in the UK, it is possible to find postcode limitations in certain parts of the country such as the Highlands, or any other area of the country.
Bridging Rates calculator
A lender may use a bridging loan rate calculator to determine how much interest they will charge. To calculate the interest rate percentage they think is appropriate for the risk they are taking, they will use information like your credit rating, industry experience and the viability to invest.
Calculate the interest on bridging loans quickly
To calculate the total interest for a bridging loan, some lenders use standalone calculators. The amount of interest you pay will depend on many factors such as the length of the loan, the rate you get, and the type of bridging financing deal you have.
Bridging loans are typically charged interest in one of three ways: monthly or rolled up and retained. The total amount you pay can vary across the board.
- Monthly: Interest works exactly the same as an interest-only mortgage. The interest is charged monthly, and the entire loan amount is due at the end. To calculate the rate you will be charged, the lender will use a monthly interest-bridging loan calculator.
Each month, the interest is added to your loan amount and compounded. At the end of the loan term, the total amount is paid off.
The amount of interest due at the term’s beginning is calculated by the lender and the customer is billed based on how long the loan has been in force. If the borrower decides to pay it sooner, the total amount due is due at the conclusion.
Lenders allow clients to pay monthly interest. This allows them to get more leverage out of the deal. The interest is not added to the loan amount, which increases the client’s net loan.
Bridging Loan Calculator: Final Overview
In most cases, we can secure bridging loans regardless of credit history.
Interest rates may be slightly higher for those with a particularly bad credit history due to the fact that not all lenders will be prepared to lend under those circumstances.
We hope this guide and calculator on bridging loans are helpful. If you need any further information please contact us and we will help you get calculations for your bridging loan requirements.