Using a bridging loan calculator allows you to work out exactly how much you’re going to pay for utilising bridging finance. Most calculators offered a clear indication of both ongoing loan rates and repayment costs. However, calculators won’t be able to include any additional fees that certain lenders may provide.As ever we caution that all borrowers do their due diligence on the finance you’re considering, to avoid any surprises further down the line.
Who Might Benefit from a Bridging Loan Calculator?Bridging loans, like any form of finance, are dependent on a number of factors including the larger fluctuations in the market, as well as the particular offerings made my lenders at any point in time. Anyone considering a bridging loan is likely aware that this form of finance can be more expensive than traditional mortgages or bank loans. It works well for a shorter period of time but can become onerous if an existing property fails to sell.Using a bridging loan calculator is an important first step in considering the viability of using this form of finance. The calculators will also demonstrate how fluctuations in interest rates can have sizeable effect on your overall monthly repayments.
What do the Calculators Include?The best calculators will cover the following:
- Amount of Money required to borrow
- Loan Duration
- Value of Property to be used as loan security
- Is property used as security
- Any balance of current outstanding mortgage
- Rolled up or monthly interest?
- Early Settlement Amount
Additional Fees Which May Not be Covered by the Bridging Finance Calculator
- Lender Facility Fee
- Property Valuation Fees
- Legal Costs
- Administration Fees
- Exit Fees
- Broker Fees