While there may be lots of information available about what bridging loans are not many potential borrowers appreciate that using a bridging loan calculator will be of great help.
The main reason for using a bridging loan calculator is that it will show instantly how much the short-term finance will cost when the repayment comes due.
Indeed, most bridging loan lenders will have a calculator on their website and the potential borrower simply needs to add a few details.
For most lenders of short term bridging loans, they will be requiring a percentage of the amount being borrowed, this is the lender’s fee.
There may also be a broker’s fee to pay as well, and this will be expressed as a percentage of the loan’s amount.
Considering short term bridging loans
The third piece of information required for those considering short term bridging loans is the monthly rate of interest and this will provide the total amount payable when the bridging loan term ends.
Essentially, the actual amount to be repaid for a bridging loan will vary because of a number of factors including how the borrower wants to repay the loan’s interest. That’s because it’s possible to have the interest ‘rolled up’ so there are no monthly repayments until the loan falls due.
Potential borrowers of bridging loans also need to appreciate that the rates being offered by lenders will vary and they need to find a short-term bridging finance provider that will match their needs with a reasonable rate of interest.
For instance, a borrower wanting a £100,000 bridging loan will be looking to pay interest that will vary from 0.59%, so the borrower’s monthly rate of interest will be £590, up to 1.5% which will see the borrower’s interest amounting to £1,500 per month.
Lenders offer short term bridging loans UK
Lenders offer short term bridging loans UK over a range of periods from several days and up to two years.
It should also be appreciated that the rate of interest will vary, potentially on a daily basis, and for a borrower’s individual circumstances as well as.
Essentially, a bridging loan calculator is a quick and effective way of finding out how much money is available to borrow and how much it will cost a borrower for that amount.
Bridging loans are an effective short-term financing solution and with a wide range of uses and purposes, growing numbers of borrowers and businesses are turning to the sector because they are quick to arrange and offer various ways to repay.
For anybody interested in a bridging loan calculator and bridging finance then the helpful team at The Bridge Crowd can help.