Bridging Loan Calculator.
Our simple to use bridging finance calculator will allow you to quickly work out the potential cost of a bridging loan.
Using the Bridging Loan Calculator.
Our bridging finance calculator is quick and easy to use, simply enter loan amount required to simulate repayment amounts based on an interest rate and the loan term. This is to calculate the loan interest only and not any additional fees / charges that may be deducted from the gross loan to leave you with a net loan amount. Typically there would also be an arrangement fee, a property valuation fee, legal fees for both the borrower and the lender, as well as any other professional costs, such as for a monitoring surveyor or structural engineer. The redemption amount will be dependent on the loan term, and whether the lender is charging a exit fee. If you do not keep the loan for the full term, you will only pay interest on the loan for the time that you have it, with interest typically calculated monthly.
If you have any questions about our bridging loan calculator, or if you would like to understand fees & other associated costs in more detail, then simply give us a call or fill out our enquiry form.
How Much Can You Borrow on a Bridging Loan?
The amount you can borrow is very much dependent on the specifics of the deal, with some lenders having more flexible terms and different appetites for certain asset classes and locations, dependent on their criteria and the loan amount.
In all cases, the lender will look carefully at the following areas:
- Is it in good condition?
- Is it in a good location?
- Do your plans make sense?
- Could they sell it quickly if they had to?
- What is the property market value
- What is the bridging loan amount
- How will they repay the loan – the “exit strategy”
- How much fresh cash is going in on day one from the borrower.
- Is any additional security being offered,
- Can the borrower provide a strong personal guarantee or corporate guarantee.
- Can they service the monthly interest if required
- Do they have experience?
- Have they done this type of transaction before?
- Do they have any background assets and good net worth?
- Do they have clean credit?
- Do they have a good professional team around them?
How Is the Maximum Loan to Value (LTV) Calculated?
There are many factors that affect what LTV you can expect from the bridging lender, with factors such as borrower experience, background net worth and the strength of the underlying property asset all being critical factors. Other areas a lender will look at are:
- The class of properties used as security i.e residential or commercial
- The location of the security properties
- The property value and loan amount
- The bridging loan amount required
- The loan to value (LTV)
- The loan term
- If it is a first or second charge. If a second charge bridging loan, they need to know the first charge mortgage balance to calculate total loan to value
- Do you know how to use a bridging loan. Do you have experience?
- Do you have any missed mortgage payments?
- Do you own any other property assets?
- The purpose of the property loan – does it make sense.
- If it is regulated by the Financial Conduct Authority (FCA)
Who Would Qualify for Bridging Finance?
- Individuals either employed or self employed
- Individuals who cannot prove their income
- UK Ltd Companies
- Individuals with Poor Credit
- Individuals with Equity in their Property
- UK Ltd Companies with Poor Credit
- Individuals with almost any credit status good or bad
What Is a Bridging Loan?
A bridging loan is a form of short term finance that is secured on a property asset. The difference between bridging finance and a mortgage is that the loan can be secured against a property that may not be suitable for a normal term loan i.e an uninhabitable property that is to be refurbished, a property whose title will be changed, or if the class of use of the property is to be changed throughout the course of the loan. In fact there are many different uses for a bridging loan.
Short term finance is perfect for individuals & ltd company owners looking to fund a new property purchase or to utilize existing capital tied up in other properties. At Tiger Financial, we are fully authorised and regulated by the FCA, so can assist property investors with all aspects of regulated bridging loans & unregulated bridging loans. With access to over 400 bridging lenders, including specialist family office and private investor loans that you cannot find elsewhere, we guarantee to find the best possible bridging loan for your buisness.
We can arrange bridging loans for people looking to borrow £100,000 with no upper limit, throughtout the UK and Western Europe, with financing available for all property types and borrower profiles.
Use our bridging loan calculator to help you work out the cost of using bridging finance for your next property project.
Bridging Loans – Flexible Funding for Property Investors
Simply use our contact form or give us a call and we will work with you to arrange bridging finance for your next property project. Our expertise and access to the market means we’ll find you the best available product with the most competitive bridging loan interest rate for your project and circumstances.
If you are looking for a competitive short term bridge loan with the best bridging loan rates then get in contact with us today.
- Some of our bridging loans cover
- Bridging Loans for HMO’s
- Bridging Loans for PBSA
- Bridging Loans for Residential Parks
- Bridging Loans for Renewable Energy Developments
- Bridging Loans for Pubs
- Bridging Loans for Offices
- Bridging Finance for Leisure Properties
- Bridging Loans for Hotels
- Bridging Loans for Land
- Bridging Loans for Hospitals
- Leisure Park Bridging Finance
- Bridging Loans for Agricultural Property
- Bridging Loans for Care Homes
- Bridging Loans for Factories
How Are Bridge Loans Calculated?
When using the bridging loan calculator to work out the net loan amount, there are several important factors that can have an effect on the finance facility that you will ultimately be offered by the bridging loan lender.
Important points to be aware of:
- Do you have a clean credit history or do you have a low credit score? This can have an effect on both the interest rates, the loan amount or even whether the bridging lender will offer you a bridging loan.
- Is the security property in England or Wales? If not, then there are far fewer bridge loans available, due to the lack of bridging lenders operating in Scotland and NI.
How to Calculate Bridging Loan Costs
All bridging loans are different, depending on the security property being used, the loan amount, the loan term requested, whether it’s a residential property, commercial property or development land, and the lending criteria of the bridging lender. Assuming you find a bridging loan provider whose loan plans meet your requirements; you will then have to factor into the bridging loan calculator / loan calculator – the following information to get an accurate bridging loan quote:
- The gross loan size. It is normal for bridging lenders to calculate the total bridging loan interest payments, then deduct these from the gross loan amount, leaving you with a lower net figure. Because there are no monthly interest payments, it means you do not need to provide income proof like you would do with the high street banks.
- The interest rate percentage. This will be on your bridging loan quote. Typically interest rates for a residential property would be around 0.75% for a 75% LTV loan.
- The bridging lenders facility fee or arrangement fee. Typically this is 2% for most bridge loans.
- Broker fees. Typically for harder more complex cases this would be 1% of the total loan.
- Loan term: Normally you take bridging finance for up to 12 months, then if you repay the bridging loan early, you will have the unused interest charges returned to you.
- Exit fee. Not typically charged on a residential bridging loan, but common for complex bridging finance and development finance products.
- Administration fees. Typically a few hundred pounds, but these are added to the loan.
Tiger Financial Ltd is a financial services company registered in England no: 10225910.
Tiger Financial Ltd is directly authorised and regulated by the Financial Conduct Authority (FCA) no 915106.
The FCA does not regulate all mortgage, commercial mortgages or bridging loan products. Think carefully before securing debts against your home. Your home could be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
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