USE THE BRIDGING LOAN CALCULATOR BELOW
The bridging calculator below to get the best rates in the market.
Details on using the calculator
In this section you want to choose the type of bridging loan you want.
How many properties will be used as security against the loan. In most cases it is one.
The current market value of the properties for security.
Any outstanding mortgages or loans against them.
In this section add the amount of finance you require.
The lenders arrangement fee is typically 1% to 2%
The interest rate ranges from 0.40% to 1.5% monthly, depending on the deal. If not sure add 0.80%.
Add how long you want the loan to be.
The date you want the loan by.
How To Use An Online Bridging Loan Calculator
An online bridging loan calculator is used for bridging loans, for calculating and give a detailed guide of the costs of interest and other fees.
It’s good to use to see how much the bridging loan will cost in total, with all the extra fees added on.
It provides you with more detailed insight as to what you will be paying on top of the loan, which means you can be more prepared.
Why Is An Online Bridging Loan Calculator Used?
An online bridging loan calculator is used to provide you with information and a detailed guide as to what you will be paying on top of the bridging loan.
You will be required to input information in regards to the loan you plan to take out, and from this, the bridging loan calculator works out what interest and additional fees will be paid on top of it.
It gives an estimated price as to what each expense will cost. By using a bridging loan calculator, it means you can quickly see how much you will be required to pay back in total, which is dependent on how much is being borrowed, security and the term type.
So, the bridging loan calculator is used to be able to determine how much is needed to pay back and see if this is something you can do, before going to apply for the bridging loan.
What Information Is Needed
When using a bridging loan calculator, there is some information needed, to be able to work out the additional fees and interest rates for the loan.
Each bridging loan and its costs will vary in price, depending on the amount being borrowed, security that is used and the term type.
Loan Amount
The first piece of information needed for a bridging loan calculator is the loan amount that is required.
It’s the total amount that is required to borrow before any interest or additional fees are put onto it. It’s the amount you want to borrow, purely for your project.
Term Length Required
The next piece of information needed is the term length that you require to have the loan for.
This is the amount of time that you plan to have the bridging loan for, where after this time, it is fully paid back.
This is the maximum term length that you would be willing to take when taking out the bridging loan.
Security Used
The next piece of information needed for the bridging loan calculator is the security that is planned to be used in order to take the bridging loan out.
Most of the time, this is a type of property, and in that case, you will be required to state the value of the property and the mortgage balance for that property.
However, security isn’t always property, so in some cases, you can input the total value of the security that is going to be used for the bridging loan.
Value Of Security
Relating to the type of security that is being used, you will be required to input the value.
Most of the time, this will be a property, so they will also ask for the outstanding mortgage balance on the property.
Interest Roll Up Or Monthly
Interest roll-up is the interest charged at the end of the month, for every month you have the loan for.
It’s then added onto the total loan balance and is paid when the loan is complete.
On the other hand, we have a monthly option which is where the interest is paid monthly. You will be required to state this information, as it can change the interest rate outcome.
Redemption Amount
This is the number of months, where you could pay the loan back early.
From, the bridging loan calculator works out a settlement amount for the clearing the loan at the end of this month.
What Information Does An Online Bridging Finance Calculator Give You?
As a result of using the bridging loan calculator, you get instant results for several different things that you might be charged for when taking out the bridging loan.
All of these things are worked out from what was inputted into the bridging loan calculator, so it’s best to make sure all information inputted, is correct.
Net Bridging Loan Amount
This is the amount of money you will be borrowing before any interest, and additional fees are paid.
It should appear the same as the net bridging loan amount you inputted into the calculator.
Monthly Interest Rate
This is the monthly rate of interest charged and added onto the loan. Some bridging loans charge interest every month, so it’s something you need to be prepared to pay off every month.
Average Monthly Interest
This is the average monthly interest rate, based on a full term loan.
Interest If Loan Runs Full Term
The amount of interest charged, if the loan is cleared at a full term, rather than an early settlement.
Gross Loan
This is the total bridging loan amount, additional fees and interest rates if the loan is full term.
Additional Fees
The bridging loan calculator will also work out other costs that might be paid on top of the loan such as valuation fees, administration fees, redemption fees, exit fees and broker fees.
This gives you an idea of what else you will be charged for and to make sure this is something you can pay back, on top of the bridging loan.
Loan Settlement
This final part of the bridging finance calculator is the redemption amount at full term and early settlement.
So, this is the estimated amount that is needed to clear the loan, either at full term or at early settlement.
Maximum period is sticking to the total amount of time agreed and paid the loan back within that time.
An early settlement is if you pay the loan back before the agreed time, but to the month that you put into the calculator.
Sometimes people might want a 12-month loan but put their early settlement as month 6, to be able to pay it back sooner.
Whether it’s full term or early payment, they will both change the outcome of the total loan amount, with interest and fees.
How To Use A Calculator
There is a lot of online websites that will provide you with an online bridging finance calculator.
It is sometimes best to find one through a broker or bridging loan lender website, as this is likely to be more accurate and reliable.
It is a straight forward process, and the bridging finance calculator will explain all of the parts needed, for you. As long as you have the information required for inputting into the bridging finance calculator, then that is everything you will need, to get instant results.
Fill in each section of the bridging loan calculator and then click calculate. From this, it will work and estimate for what interest and additional fees will cost and the overall price of the bridging loan.
It is all based on the information that you input into the bridging loan calculator, so make sure that this is all accurate information and what you plan to use when applying for a bridging loan.
The information inputted into it is what you will be telling the lender when applying for the bridging loan, so being as accurate as possible, will give a more true estimate and reading.
The bridging finance calculator will usually always tell you what each part of it means, so if you’re unsure of what something means or what you need to input, it should explain it to you.
There isn’t much to fill in, so as long as you have the information prepared, it’s very straight forward and simple to use.
Is An Online Bridging Finance Calculator Needed To Get A Bridging Loan?
The online bridging finance calculator is used for your benefit, to determine how much it will cost overall for a bridging loan.
So, it isn’t needed to apply for a bridging loan, but it’s beneficial to use one beforehand, to work out if it’s the best option.
The bridging loan calculator will work out not only the loan cost but what the interest fees and additional fees will be, that is added onto the loan.
From doing this, it helps to determine if it’s something you can financially do in the time limit that there is on a bridging loan.
It isn’t needed for the application process, but it’s good to use it beforehand, to get a better idea and understanding of what you will be expected to pay with a bridging loan.
THE BENEFITS OF USING AN ONLINE CALCULATOR
As you may already know, bridging loans are mainly used for short-term financing, when you need large sums of money on short notice.
This type of loan is usually paid off in 12 months because the annual rate of interest is higher than the standard rates.
In short, bridging finance is fit for short-term loans, and not recommended for long-term ones.
However, such a loan comes with a lot of factors that have to be taken into consideration before applying. Basically, you have to know whether this form of finance is VIABLE for your needs and plans.
In this respect, a bridging loans calculator is able to provide you with all the information you need to make the right choice regarding a loan.
Therefore, today we’ll be talking about the characteristics, aspects, and benefits of this practice.
In short, get ready for bridging loans explained!
First of all, let’s start by looking at what these calculators include, and if there are things that they do not cover as well.
Before relying on such a calculator, it is important that you understand it well and are able to use it properly. So that you don’t run into any errors that might have an “influence on your future plans”.
Overall, the best-bridging loans calculators out there will include and cover the following information:
- The duration of the loan
- The amount of money that’s required for you to borrow
- The value of the property that will be used as loan security
- Whether or not the property is used as security
- Data regarding any balance of a current outstanding mortgage
- Either rolled up or monthly interest
- The early settlement amount
All the information above, as well as data related to it, should be included in every good calculator. This is the data you need to be able to calculate exactly what you are interested in.
However, keep in mind that there are some things that a bridging calculator may NOT include and cover – mainly, additional fees such as:
- Broker Fees
- Exit Fees
- Lender Facility Fee
- Property Valuation Fees
- Legal Costs
- Administration Fees
With this information in mind, let’s take a look at the benefits of using such a calculator.
THE BENEFITS
As mentioned before, bridging finance can be seen as an alternative form of lending. Preferred by many people that don’t wish to rely on traditional mortgage finance.
Even though this type of loan is becoming more and more popular, there are still people unaware of how they work.
Therefore, a calculator is meant to help you calculate the repayment schedule, as well as determine the terms of such a loan.
Moreover, a bridging loan calculator will show you how the fluctuations in interest rates can influence your overall monthly repayments.
Basically, you’ll have full control over your loan, and you’ll know exactly what to expect from it.
A calculator as complex as this is essential for anyone interested in applying for bridging loans, as these represent a more expensive form of finance than the aforementioned traditional mortgage or even bank loans.
While they work well for a shorter period of time, bridging loans CAN become difficult to handle if one of your existing properties fails to sell, for example.
NO HIDDEN FEES OR OTHER TYPES OF SURPRISES
Obviously, a calculator is best to use before you actually apply for such a loan.
It helps you explore all the options you have in terms of bridging loans, and it also highlights all the typical charges and fees that you can expect to deal with when applying for your loan.
Naturally, one of the main benefits of a bridging calculator is that it helps you understand everything about your repayment obligations.
You won’t have any surprises, hidden fees, or other things that you should take into account other than what the calculator shows you.
Of course, do consider the fees that most calculators may not include – those that we’ve mentioned earlier.
UNDERSTANDING DEVELOPMENT FINANCE WITH A CALCULATOR
A calculator is also used as a property development loan calculator.
And one good thing about it is that you can change the rate of interest to be in line with the loan to value factor that you require, in order to be provided with a more accurate indicative quote.
Moreover, if you enter a term of 12 months for the loan, the overall cost provided by the calculator will assume that the interest is paid over the full them.
Usually, bridging finance is paid off before their full term. Mainly because you will pay interest only for the time when you actively use the loan.
There are also some factors that influence the cost of the loan. Such as the loan to value, property location, whether the property is regulated or unregulated. As well as lender fees, legal costs, survey fees, broker fees, and loan exit fees.
Just as we mentioned before, keep in mind that, while some of these factors may be included in the bridging loan calculator, some of them will not be covered by it.
Thus, you have to take it into account separately so that you don’t miss any of the things that you should pay.
FINAL THOUGHTS
As you can see, a bridging loan calculator is a perfect tool for you to see what you should expect after applying for such a loan.
Therefore, finding the best bridging loan calculator in the UK is quite important, As you’ll want it to cover as much data as possible so that you get the information you need out of it.
However, even if you think the calculator has provided you with all of the information you need. It is still recommended that you consult an expert.
This way, you can make sure that you didn’t miss anything or that you don’t have a credit score that may influence the results of the calculator when applied in real life.
In short, such a calculator is a great place to start and to get an idea on how you should manage your loan, repayments, interest fees, and so on.
