Why a bridging loan calculator is important
While bridging loans have grown in popularity they are not for everyone which is why a bridging loan calculator is important.
Indeed, the number of short-term finance products that are available on the market has risen sharply in recent years and the purposes for this type of finance has also increased.
That’s because bridging loans were used traditionally to bridge the gap between the buying of a property before an existing home had been sold.
Now, however, bridging loans are used to raise capital before a sale takes place, for instance when refurbishing a property.
Essentially, the bridging loan calculator is a simple tool for understanding bridging finance so the potential borrower can see at a glance how the smallest fluctuation in interest rates will affect the monthly repayments.
Short term bridging loans can be used for a variety of purposes
It’s important to remember when using the calculator that the short term bridging loans can be used for a variety of purposes and the amount that is borrowed will be dependent on the security on offer.
This means the bridging finance can be used to refinance or purchase a property for a variety of terms, usually up to two years.
In addition, borrowers also use this form of short-term financing to pay off debts or to help a business expand by buying stock or new premises, for instance.
Short-term bridging loans are also popular with developers who can buy a commercial or residential property at auction quickly and easily and then either sell it on or obtain a mortgage for it.
Short term bridging loans UK can be obtained
Short term bridging loans UK can be obtained from several thousand pounds to several million pounds, depending on the bridging finance provider and the borrower’s circumstances, and these loans can be arranged quickly, certainly more so than from a traditional high-street lender.
There is no doubt that a bridging loan calculator will be helpful but potential borrowers also need to appreciate that the minimum terms can range from a day or two with some lenders to several months and they will have a variety of interest rates for the purpose of the loan.
For many borrowers, the calculator will give a good indication of how much they will need to repay when the loan falls due and how much money they can actually afford to borrow.
Finally, for anybody interested in using a bridging loan calculator, they should appreciate that the tool is provided for quick reference and for actual rates and a bridging loan quote then the lender or bridging finance broker should be contacted; for information contact the team at The Bridge Crowd.