A Bridging Loan Calculator is used to enter bridging interest rates and then work out what your monthly payments would be should you take out a bridging loan however the cost of a bridging loan is not just about the monthly payment you also have to take into account other costs that a lender will ad to the loan in these will include the cost of a valuation so the lender can determine the value of the security they are lending against, they will also want an arrangement fee that is agreed on the loan and also you will have to cover not only your own legal fees but also those of the lenders, these will also be needed in for your cost of bridging loan calculator some people also search for a Bridging Finance Calculator which is basically exactly the same as a Bridging Loan Calculator UK, so really a monthly interest bridging loan calculator will only show you the actual interest you will pay and not take into account all of the other charges you are likley to have to add to the loan, also an interest only bridging loan calculator cannot take into account many other factors that could affect total costs you will be paying back to the lender.
What you do with an interest only bridging loan calculator is enter the value of the property and then the amount of loan you would like to take and then add on things like arrangement fees, Valuation costs and also the total legal fees for your own and also the lender's solicitors.
The calculators can give you a fair indication of costs but until a lender has actually looked at your proposal everything is really just a guide, with over 80 bridging loan lenders in the UK and each one offering different rates of interest depending on their lending criteria you can never really know for sure what your actual interest rate is going to be, we can quickly look at your proposal and within a few minutes tell you exactly what all of your costs are going to me including arrangement fees, valuation costs, legals and also give you an exact amount the loan is going to cost you over the time period you are looking to have the loan for. If you are just second guessing theses a calculator could give you totally the wrong information and leave you no wiser on what you are likely to be paying for your bridging finance.
What Interest rates to use with a Bridging Finance Calculator in The UK
Bridging Loan interest rates vary according to the security that is on offer to a lender, residential is always a prefered security, however, they will also lend on Commercial properties, properties that are both a mixture of residential and commercial, they will also offer to fund land with or without planning permission.
So the best interest rates will always be offered on residential properties, this starts at as little as 4% per month if it is a low loan to value say 60%, they will go up to 75 % loan to value on the very best deals however as this is a far more risky proposition to a lender the interest rate will climb accordingly.
Commercial propositions are always more expensive due to the fact that if they have to sell the asset to recover their capital a commercial property will have fewer buyers except in circumstances where say the property had a particularly strong covenant, it really does depend on the individual property that is being offered for security.
Land with planning permission will attract a lower level of interest that land without planning purely because without planning it can only be valued on existing use with maybe a bit of hope value for something that say had previous planning and or has had a favourable pre-planning application submitted to the local authority.
What are the Arrangement Fees
Arrangement fees are always set at 2% of the loan amount your require this is standard for all Bridging Loan lenders, you should note that no matter what the length of term you want to take the loan out for it is 2% and should be added to your calculation. We would advise that even if you think you will need the finance for say 3-6 or 9 Months you take it for 12 it will not cost you any more and as you are only charged interest monthly for the months the loan is actually outstanding it will not add any more to your overall costs if you take the loan for 12 months. The other thing to bear in mind that with property things can run over your expected timescales and often they do so there is no point in putting yourself under pressure by taking a shorter period for the loan, also if you did take say a 6 months loan and at the end found out that you need to extend it by say another 6 months the lender will charge you another arrangement fee.
What Are The valuation Fees?
The valuation fees are for a surveyor to assess the value of the security that you are proposing to offer for the loan depending what the security is a valuer could just do a desktop valuation which means they will not visit the property but rather use sold statistics for the location, or in a more complex case they would need to do a site visit to get a feel for the property. The fees for the valuation can range from a couple of hundred pounds for desktop valuation up to £1k+ for a larger loan or one that was not straightforward say, for instance, a commercial property or land the valuation fee should also be added to our monthly interest bridging loan calculator.
Legal Fees for Bridging Finance
You will also need to add to your calculators the cost of any legal fees that are agreed beforehand with the lender and also what your own solicitor is going to charge you for dealing with the transaction, these can vary a lender will use a solicitor they know well and will give you a ballpark figure for their fees, which you will have to pay to them as soon as you have decided that you want to proceed with the loan, you should also agree on a figure with your own solicitors, they can then all be added to your calculations to give you an overall cost of finance.
What you can do now
You can use a calculator to work out your costs, however as mentioned before this will give you little information on what your costs are going to be without hard facts on what you are proposing to do what the loan to value is the security to be offered and knowing who would be the best lender for your circumstances.
Our advice is rather than use a Bridging Loan Rates Calculator, give us a quick call and within just a few minutes we can give your exact costings, what interest rates you can get, arrangement fees, legal costs and monthly payments, you will then know exactly what your costs are going to be rather than just a guesstimate using a cost of bridging loan calculator.
With over 20 years experience you can be assured of the very best help and advice from our team.
Bridging Loans Bridging Loans Bridging Finance Bridging Finance Development Mortgages Property Development Finance Property Development Loans Loans For Property Development Property Development Finance Development finance Instant Bridging Loans Instant Bridging Loan Instant Bridging Finance Bridging Loan Calculator Bridging Loan Calculator UK Bridging Loan Rates Calculator Bridging Loan Rates Calculator Bridging Loan Quote Bridging Finance Quote Bridging Loan For Property Developers Bridging Loan For Property Development Best Bridging Loan Best Bridging Loans Cheap Bridging Loan Cheap Bridging Loans Non Status Bridging Loan Residential Non Status Bridging Loans NatWest Bridging Loans Natwest Bridging Loan Calculator Barclays Bridging Loans Barclays Bridging Loan Calculator HSBC Bridging Loans HSBC Bridging Loan Calculator