While bridging loans are growing in popularity it is always worthwhile finding out how much one will cost by finding the best bridging loan rates UK currently available.
It will soon become obvious that the loan rates vary between lenders because a lot depends on the borrower’s circumstances and the criteria of each bridging lender.
It should also be appreciated that bridging loans are quick and easy to access and arrange and this is also reflected in the amount being charged.
In addition, there’s also the question of the loan to value (LTV) which means that the lower the proportion of the LTV, then the better rate a borrower will be able to access.
Find the best UK bridging loan provider
The next most important issue when trying to find the best UK bridging loan provider is that the loans are often tailored to the borrower since they can be used for a wide range of purposes so the loan will meet those needs.
Bridging loans also offer flexibility and a borrower can opt for rolling interest which means that they do not have to pay a monthly interest payment but simply repay the entire amount when the loan falls due.
Most borrowers, however, will opt for monthly repayments for the re-paying of the bridging finance since it will suit them as they will have better cash flow without stretching their financial plans.
As mentioned previously the interest rates will vary on the amount that the borrower needs and a lender may be prepared to loan any figure from £5,000 to £5 million, for instance.
Rates for a bridging loan UK
On top of this, the rates for a bridging loan UK may also reflect the length for the loan which may run from one month and up to two years.
However, while it will be more expensive in most cases than borrowing from a high street lender, there’s no doubt that bridging finance can be arranged more quickly, if the bridging loan broker and lender already know the client then the funds can be arranged within 24 hours but many lenders will deliver the funds within a few days.
It’s this level of flexibility which also reflects on the rates being charged and help explain why bridge loan finance is growing in popularity.
For more information or help about finding the best bridging loan rates UK then contact the helpful team at The Bridge Crowd.