Bridging Loan Calculator
This Bridging Loan Calculator is for illustrative purposes only – the figures calculated here DO NOT constitute a mortgage / finance offer. Any formal Finance offers are only issued after full application, site valuation & due diligence has been carried out
Minimum annual Interest rate
(typical rate 1% pcm)
LTV overall against GDV
1 - 24 Months
24 months Max term available
How much Bridging Loan can you get?
Our Bridging Loan calculator enables you to quickly see, what sort of level of bridge loan you might get for your housing build / property extension. This calculator is primarily aimed at the UK finance lending market.
It quickly calculates how much deposit you might need, and the impact of if you have additional security you can offer upto the lender.
With additional security you may well get 100% of the purchase / land price AND 100% of the build costs.
The bridging loan calculator will help you work out how much initial funding you can get towards the land purchase and how much funding you will get towards the build costs.
It will also provide a guide to how much profit your project will make before and after interest and charges, and also the estimated ROI return on Investment that your building project will achieve.
The finance calculator is only for indicative purposes, and the actual finance offer will be subject to a valuation and some breakdown of your build costs to confirm the overall figure is broadly inline with typical build costs for that type of property / conversion.
quick bridging loan calculator instant results
Our online calculator will let you see instant results about the lenders fee’s set up fee’s and l;egal fee’s typically involved in a bridge loan. Also it will highlight they typical interest rates you might get on the loan depending upon if you are bridging a deal between purchases, or for a house extension or renovation or refurbishment. In addition the online instant calculator will show you the maximum loan amount available ( typically 75% of the property value at outset ), so knowing this you can reset expectations regarding how much you can borrow and over what time period.
What are bridging loans?
What is a bridging finance? It is a versatile, temporary loan usually secured versus residential or commercial property where the borrower consents to pay back the finance plus passion by an agreed day.A bridging loan or finance can be helpful if you require to obtain money for a short duration. It can help to ‘connect the gap’ if you wish to purchase a new house prior to selling your old one. Bridging loans can also be used if you purchase a home at auction, where you’ll need the money promptly yet may not have sold your current property yet.
Bridging loans are a short-term finance alternative, generally used by building buyers to ‘link’ the space between the sale of their present home and also completion date on the acquisition of their next residence.
These finances allow homeowners who are having a hard time to discover a purchaser move into a new residential or commercial property before offering their existing house.
This would certainly imply that the individual obtaining the loan will certainly have two residential or commercial properties momentarily, potentially leaving them with a large quantity of secured financial debt if it takes a very long time to market the original property, if the customers withdraw entirely, or you market your residence for much less than you expect.
What is a 2nd charge bridge loan?
Typically, if you still have a mortgage on your building, the bridging loan will be a second charge finance, in other words it sits ‘on top of’ your current mortgage ( which is the 1st Charge ).
This means the Bridge loan is still secured on the property and meaning that if you fell short to meet payments as well as your residence was sold to pay off your financial debts, your home loan would certainly be paid off. If you possessed your residential property outright, or you were taking out a bridging loan to settle your home mortgage in complete, you would certainly take out a very first cost linking loan.
There are additionally set-up charges to think about, usually around 2% of the finance you want to take out, so it is recommended to only take a connecting finance out if you are confident that you will not need it for a lengthy period of time.
Alternative to bridging finance
If you are an older retired client seeking to see how they can downsize without marketing their old residence initially, or when your customer has found their dream home prior to their present one is also on the market?
Some lenders offer a short-term financing product at a rate of interest just item which lasts two years, and as it has no ERC’s it can be made use of for much shorter periods. It is suitable for those clients that have identified a building yet for whatever factor are not going to be able to sell their current one. It can be less expensive than linking, and also they can offer 100% of the acquisition price, subject to a maximum LTV of 60% throughout both properties.
If the loan can be sustained on one property alone after that they will be more than happy to utilize simply the new or the old residential property as safety and security. The Lender can even divide the loan to make sure that there is a resources and passion payment part on the new residential or commercial property over a much longer time-frame (subject to the mortgage being retrieved by age 80) and also the temporary borrowing product can be protected on the residential or commercial property which is to be offered.
As the finance is serviced, we will certainly need to embark on an assessment of cost, yet the short-term loaning product is passion just and also as the payment strategy is ‘sale of property’, we do not require to consist of the expense of a different repayment technique within the cost calculations
Nevertheless, in some cases, it might be that options exist using standard term home loans, secured finances or perhaps commercial lending.
” Some loan providers have introduced as well as generated ‘bridge to let’ items, which integrate a four-month swing loan, with a guaranteed buy-to-let exit home loan after four months, with no additional evaluation or legal fees.”