Call Now: 0800 138 6001 - Open 24/7

Call Now: 0800 138 6001 - Open 24/7

Bridging Loan Calculator

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Compare and Calculate Bridging Loans

Our unique Bridging loan calculator is available to give you a reasonable indication of what your overall costs are likely to be when taking out your bridging loan.

Simply enter the details of the loan amount and estimated property value into the Bridging Loan calculator.

Bridging Loan Calculator

Compare and Calculate Bridging Loans

Our unique Bridging loan calculator is available to give you a reasonable indication of what your overall costs are likely to be when taking out your bridging loan.

Simply enter the details of the loan amount and estimated property value into the Bridging Loan calculator.

      Calculate Bridging Loan Rates

      BWG Finance is on the panels of over 100 bridging loan lenders and interest rates can fluctuate by the day, also different circumstances would attract different rates according to such things as your properties loan to value ratio, length of the loan, the location of the property, type of property, credit status etc.

      Rates can start as low as 0.37 % per month or 4.4% per annum and up to 1% per month 12 % per annum for borrowers with bad credit and or defaults. Each situation is different so you should work out where you think you would fit into these parameters, a low loan to value with good credit would qualify for the lower interest rates and a high loan to value with really bad credit, defaults or county court judgements or loan arrears would be at the higher end of the scale.

      How do lenders calculate interest rates?

      When taking out Bridging finance interest is charged on a monthly basis on the amount of the outstanding loan, so a Bridging loan with an interest rate of 0.37% per month would attract an interest charge of £370 per month, this is based on a £100,000 bridging loan.

      How is interest paid

      Bridging Loan Interest is paid in two ways one is called rolled up, which is how most loans are taken out, or they are paid monthly as you would your mortgage.

      Rolled up interest works as follows

      When you take out a bridging loan interest is calculated on what the whole of the bridging loan term is, this amount is then removed from the total loan amount that is advanced to you.

      Let’s say for instance you take out £100,000 bridging loan, the bridging loan calculator will work out the interest on that loan let’s say at 5% over 12 months it will be £5,000

      The lender would then deduct £5,000 from your £100,000 loan and you would receive £95,000 so you have paid £5,000 of interest in advance.

      If you actually redeem the loan early, then any outstanding interest that has been paid, will be paid back to you, in effect you are only going to pay interest for the period that  the loan is outstanding, so if you only had the bridging loan for  6 months then 6 months  is all the interest you have to pay.

      In this situation what  would be due back to you is  £2,500 so the total amount you would have to pay back to clear the loan would be  £97,500

      Most Bridging Finance is taken out in this way with Rolled up Interest, because you don’t have to prove what your income is, also you don’t have to worry about making monthly payments.

      The other option is to  pay the interest on a monthly basis as it falls due, the downside to this is that you will have to prove earnings to show that you can actually cover the whole of the monthly payment on the loan for the whole  term that  the loan is outstanding

      If you can afford to make monthly payments and want to pay monthly, you can get more of an advance on day one as no interest is deducted on drawdown.

      Bridging Finance lenders are quite happy to do both of these scenarios and it really is down to your personal circumstances and your financial position at the time of taking out the Bridging Loan.

      Fees and costs

      Valuation Fees

      Valuation fees are what you pay to the Surveyor to value your property, for the lender these are based on a ratio of what the actual value of the property is, as a general rule of thumb you should  factor in £150-£200 per £100,000 of the loan amount, so if you had a loan of £200,000 you would expect to pay approximately £300-£400 for the valuation, this of course, can vary from one surveyor to the next and can depend on where you are in the country and how much the surveyors workload is at the moment, so it’s best to shop around, what you’ll find is that most lenders will have a panel where they’ve got three or four different Surveyors who do their valuations.

      The best thing is to get a quote from each of the surveyors on the lender’s panel they, can vary quite considerably and the price can be as much as double or more in some instances.

      Also it pays to do your homework before going to valuation, check out Zoopla or Rightmove, or any of the numerous property websites that can check out local values and you can also see sold prices for your area,  not all valuer’s  are spot on with their valuations and you do need to give them guidance, particularly if it’s niche property or if it’s in an area that you know well and they don’t

      Valuation fees are always paid in advance directly to the surveyor,  this is really the only upfront fee that you will have to pay.  I think it’s a good thing to have different opinions on valuations because we obviously all think that the property we are buying is worth what we are paying,  this is not always the case, also if the value is lower than you expected this can be used to negotiate the price of the property downwards.

      So to recap valuation fees are always paid in advance before you instruct solicitors.

      Arrangement fees

      Arrangement fees are what the lenders charge to arrange the loan for you, you’ll find it is typically between 1 and 2% of the loan amount and in nearly all circumstances paid out of the drawdown of the loan, so you wouldn’t actually pay an upfront fee for the arrangement fee, rather it would be deducted from the loan, so if you had a loan of £100,000 and an arrangement fee of 1% then £1,000 would be deducted from the bridging loan before you draw it down.

      In rare circumstances, some lenders would want an exit fee as well, but this is not the norm and this would usually be if the loan is not within easily defined criteria or the lender had exceptionally bad credit

      Legal fees

      Legal fees are basically for your solicitors and also the lender’s solicitors, with bridging loans you always have to pay the lenders solicitors costs, these would be agreed in advance before you committed to the loan.

      Also the lenders would expect your solicitor to either give an undertaking that you will pay the lenders solicitors fees or if they wouldn’t give such an undertaking, then you would have to pay their  fees in advance, most solicitors will give an undertaking with regarding your legal fees, but  it’s always best to have a chat with your solicitor in advance to make sure they are ok with this arrangement.

      Bridging Loans usually need  to complete fairly quickly so providing everything is set out in advance there’s not a huge amount of work that needs to be done, however bridging loans are a specialist loan and very often a traditional solicitor that is used to dealing with traditional mortgages is not always the best option, they tend to think that these are like any other mortgage and they can take weeks getting them to completion

      It’s best to take advice and get a specialist bridging loan solicitor that can actually operate within the timescales you are looking to achieve, BWG finance have  been working on bridging loans for many many years and as such we built up relationships with solicitors that we could  recommend to you, who we know can get the loan to complete in the time frame  of you looking to achieve.

      Partial payments of the loan

      Bridging loan lenders will allow you to make partial payments of their loans if you’ve got cash coming in and you want to reduce the interest payable. Although most want a significant amount at any one time, so if you had a £200,000 bridging loan and you came across some funds you could clear £100,000 early and reduce the interest payable accordingly.

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      Bridging Loans Calculator

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      Use our Bridging Loan Calculator, to calculate and compare bridging loans from all of the lenders in the UK. Get the best rates Guaranteed.

      All Rates are updated daily.

      Best UK Rates Guaranteed

      Bridging Loans Calculator

      Use our Bridging Loan Calculator, to calculate and compare bridging loans from all of the lenders in the UK. Get the best rates Guaranteed.

      All Rates are Updated daily.

      Best UK Rates Guaranteed

      Start Here…

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