Bridging Loan Interest Rates and Costs

Best Interest Rates

Using a range of the UK’s best lenders we take pride in knowing that we able to source the best possible deals for all of our customers, with interest rates starting from only:

Bridging Loan Plans

Residential: Light/Medium Refurb

55% LTV – 0.44% per month
65% LTV – 0.54% per month
75% LTV – 0.64% per month

Residential: Heavy Refurb

55% LTV – 0.54% per month
65% LTV – 0.64% per month
75% LTV – 0.74% per month

Most of the bridging loans which we offer here at FTO Bridging Loans are written on the following plans (Please note that this can in some scenarios change)

Up to 40% LTV – 0.48% per month
40% to 50% LTV – 0.53% per month
40% to 50% LTV – 0.53% per month
65% to 70% LTV – 0.69% per month
70% to 75% LTV – 0.84% per month

Commercial rates are as follows:

55% LTV – 0.75% per month
65% LTV – 0.85% per month
75% LTV – 0.95% per month

Bridging Loan Costs to Consider

When it comes to taking out bridging finance, there are many different costs that you must consider. Of course one of the main costs that you need to think about is the bridging loan interest rate, typically referred to as a monthly rate. Compared to other finance options this rate will seem high, and bridging loans should therefore only be used a short term funding solutions.

There are also other costs to think about, which can include:

Interest charged on bridging loans is commonly paid monthly however most facilities provide the option to have this interest rolled up. This means that monthly payments no longer have to be made and instead all of the interest is paid when the loan is redeemed.

This is otherwise known as the lender’s arrangement fee – It is a fee charged by lenders and usually ranges from 0% to 2% of the amount being borrowed.

Some bridging loan plans have exit fees. This fee is similar to the facility fee but is charged and added to the loan when it is redeemed. Many of the bridging loans that we are able to provide do not come with exit fees.

When getting a bridging loan not only do you have to pay your own solicitors but many bridging lenders will also require you to pay their legal costs for setting up the facility.

A lot of lenders require those borrowing to pay administration fees.

Valuation fees are usually required when setting up bridging loans. This is usually the only upfront fee of bridging loans and this is because valuations can be carried out before a loan is completed.

The majority of bridging loan lenders have default rates of interest and if you stick to the terms of the agreement you can receive much lower rates.

Luckily for you, here at FTO Bridging Loans we never charge broker fees.

Interest rates can differ due to particular lenders being more competitive than others. However there are many other factors in which can influence bridging loan interest rates, including:

  • Loan to value
  • Type of legal charge
  • Type of property being used as security
  • Condition of the security property
  • Location of the security property
  • Income and affordability
  • Term
  • Credit history
  • Cost and availability of funds to the lender

If you require further information in regards to bridging loan interest rates and costs, or if  you have any questions, do not hesitate to get in touch with our expert team who are waiting to assist you.