A quick guide to finding the best bridging loan rates
The first thing to appreciate about a quick guide to finding the best bridging loan rates is that there’s no standard rate for the sector since different lenders offer different rates.
Indeed, anyone interested in short-term finance will find that the interest rate will rise with the size of the loan required.
One reason for this is that not all bridging loan deals are exactly the same and the bridging loan rate will depend on the borrower’s own circumstances and the security they are providing for the loan; the better the security, the better the rate of interest.
However, it’s always worthwhile speaking with a specialist bridging loan adviser who will look at a borrower’s circumstances and then recommend a bridging finance product that will suit them.
Discussing bridging loan interest rates UK
In addition, while discussing bridging loan interest rates UK it should be appreciated that the borrower does not have to repay interest every month, as they would with a normal loan, and can simply ‘roll up’ the interest charges into the final amount that is to be repaid.
Also, when looking at the interest rates for a bridging loan it soon becomes apparent that this can be a slightly more expensive way to finance a purchase, generally because the loans are for a short-term.
The interest rates, or the APR, depend on the nature of a bridging loan and help explain why they should be repaid as quickly as possible.
For this reason, anyone considering a bridging loan should be confident of how they are going to repay it – this is known as the exit strategy.
Bridging loan rates UK
In addition to the bridging loan rates UK, the borrower will need to pay administration fees for when the bridging loan is arranged.
Bridging loans are also a flexible way of accessing large sums of money and the loan can be arranged quickly with some bridging loan lenders able to provide the money within a day or so.
Again, the purpose of the bridging finance, the borrower’s circumstances and security will all have an impact on the interest rate being charged on the short-term loan.
Essentially, for anybody looking to find the best bridging loan rates then the best advice is to shop around though by contacting the helpful team at The Bridge Crowd they will also find answers to any of the questions they may have about this increasingly popular form of short-term finance.