Bridging loan calculator
We’re always keen to be open with our customers, and so we’ve included our handy bridging loan calculator for you to get an idea of what this type of property loan may cost if you decide to take one out. Because they’re only short term they’re often more affordable and at better rates than a traditional loan, so this should illustrate that for you.
it’s perfectly straight forward, all you’ll need to do is fill in each field with your deposit, how much you want to borrow and the length of the loan.
What can regulated bridging finance be used for?
Regulated bridging finance can be used for a number of things, however, most of our clients tend to use this type of bridging loan for property.
Examples include to purchase an auction property, to raise funds on your current property to purchase your next one, to downsize a property or for refurbishment if you’re struggling to get a standard mortgage.
You could even use this type of regulated finance for things like a divorce settlement or to break a property chain.
What is the difference between a commercial bridging loan and an ordinary bridging loan?
Commercial bridging loans tend to be applicable if you’re buying a property as an investment, if you’re buying a property as a business entity, or if you’re buying a commercial property.
Bridging loans tend to be secured against a property, so the type of property and what you’re intending to use it for would dictate what type of finance you’re taking out.
A commercial loan would be, for example, if you wanted to buy an auction property as a buy to let investment but needed to do some refurbishments, these would then be classed as different types of bridging loans.
Are unregulated bridging loans safe?
Yes, we only work with reputable lenders and the main reason it’s referred to as unregulated is because it’s being used for business purposes rather than for you as an individual, hence the requirement for the Financial Conduct Authority to then regulate that type of finance as it becomes consumer related.
As with many other things, such as contract law or tenancy agreements, they’re not regulated in the same way as standard consumer products, where the consumer needs protection as opposed to business.
Are second charge bridging loans regulated?
In most circumstances they won’t be as many consumer finance companies won’t consider a second charge on a property as sufficient security against a secured loan.
When it comes to commercial property deals, however, lenders tend to not be quite as strict in this regard and are more willing to take on extra risk. Whilst second charge finance tends to remain quite a specialist area, we have plenty of lenders on our panel who will consider you for second charge loans if you meet their criteria.
Is there a minimum I can borrow?
The exact amounts you can borrow from and to will depend on the lender themselves as the loan needs to be at a certain amount to make things worthwhile for the finance company.
Because bridging finance tends to be shorter term finance, most lenders will expect you to borrow a minimum of around £10,000 but this can vary up to between £50,000 and £100,000 depending on the terms and length of the finance.
Because each lender is different, however, it’s worth speaking to one of our experts who can understand your situation fully, and it may be the case that a different type of finance may be the best for you, but we’ll talk you thro