Rates are updated daily
Retained interest Bridging Loans
There are broadly two methods of paying the interest on a bridging loan, defined as follows:
Make NO monthly payments 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. In most cases there are no early repayment penalities. If you redeem early any remaining interest is refunded.
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%.
Loan to value (LTV):
The LTV 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.
Rates start from 0.48% pm 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.).
There are no up-front fees to pay. 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.
Please note that this does not constitute a quotation. 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 retained with no monthly instalments required during the loan term. The interest rates will vary depending on the loan to value (LTV) percentage. The mamximum LTV is gernerally 75%, but can be increased if additional security is provided.
Each bridging loan application is dealt with on a case by case basis. To provide an accurate bridging loan quotation Speedy Beidging 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.