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What is a cost of bridging loan calculator UK.
A cost of bridging loan calculator UK is used to work out what costs you would expect to incur when taking out a bridging loan for either a property purchase or to release funds from equity that you already have tied up in a property that you already own the Bridging Loan rates calculator will work out what your monthly payments are likely to be and also what other costs will also become payable should you take out a bridging loan. We have highlighted what cost you are likely to encounter below.
Bridging Loan Calculator.
Bridging loans are usually quoted on a monthly interest only rate say 0.4% per month and a calculator will work out what your monthly interest rate is likely to be, so really it is just a bit of simple maths and then adding any other fees on to this to arrive a total cost for your bridging loan requirements. So if you would like to take out a loan for say £100,000 then using the interest rate above this would be £100,000 times 0.4% is £400.00 interest per month and for say a £200,000 loan it would be £800.00 per month. If you want to work out the costs for six months then it would on the £100,000 loan be six times £400.00 total cost £2400.00.
Work out Bridging Loan Calculator Arrangement Fees?
All bridging loans come with an arrangement fee this is worked out as a percentage of the agreed loan amount nearly all lenders will charge you an arrangement fee, which will be deducted from the advance that you receive. This fee is nearly always 2% of the loan value so if you wanted a loan for £100,000 then the arrangement fee is 2% of £100,000 equals £2,000. If your loan is £200,000 the fee would be £4,000.00.
How much are Bridging Loan Calculator Valuation Fees?
When you decide to proceed with your loan the lender will ask you to pay a fee for a valuation on the property that you intend to use as security for the loan. This is paid to a surveyor who will carry out the valuation on behalf of the lender. You will be required to pay the fee upfront once you instruct them to proceed with the loan application. The fee is usually worked out as a percentage of the properties end value, as a minimum this fee would be £200.00 and you can normally work on £150.00 per £100,000 their after so a property with a value of £200,000 would be £200.00 plus £150.00 total £300.00.
How much are Bridging Loan Calculator UK Legal Fees?
The only other costs you are likely to incur are the lenders are the legal fees from both your solicitor and also from the lenders, in bridging you are always asked to pay the lenders legal costs, these will be agreed with the lender and as with the arrangement fee you will be expected to pay this in advance, as a minimum you should expect to pay £500.00 towards the lenders costs, however this will increase for both complicated cases and obviously the higher the vale transaction the higher a solicitors fees will be this is basically because of the solicitors PI insurance costs.
Let's Calculate the costs of a typical £100,000 Bridging Loan over 6 months.
Below is an example of how to work out your total costs for taking out a bridging loan, note all rates quoted are quoted interest only.
Value of Property £150,000
Bridging Loan Required £100,000
Interest rates 0.4% per month
Arrangement fees 2%
Legal fees £500.00
£100,000 x 0.4% Interest only rate = £400.00 per month x 6 Months = £2,400.00
Arrangement fees 2% = £2,000
Legal fees £500.00
Total cost would be £5,100.00
If the loan was for 12 months the total would be £5,100.00 + a further 6 months interest giving a total of £7,500.00
Bridging Loan Rates Calculator
Bridging loan interest rates start at around 0.4% per month these are always quoted as a monthly rate so if you x 0.4 % by 12 then you get a rate of 4.8% per annum. The rate you are offered by lenders can vary depending on many factors these include the loan to value if say your loan to value is 60% then you will attract the best rates, if you need a higher loan to value lets say 80% then the rate will increase accordingly as the lenders are taking a greater exposure on the loan. The rates can also vary based on the type of property residential is always the preferred security, with houses ahead of flats and the least desirable is commercial or land without planning permission both of these can get bridging finance but the rates will reflect that they are a riskier proposition than straightforward residential lending an example of a loan is here.
By far the best option rather than using a bridging loan calculator is to talk to us and we can give you an exact costing within a few minutes, simply enter your details and we will contact you to inform you of what loans would be available in your circumstances.