A bridging loan is often used to ‘bridge the gap’ between the completion of a sale and accessing the credit needed to make a purchase – a fantastic option if you don’t want to lose out on your dream home due to unforeseen delays.
Thanks to Adaptive Money’s flexible approach, this short-term funding can also be used for other purposes, for when speed is of the essence or finance is needed for a short amount of time.
A bridging loan of £987,000 repayable after 12 months on a fixed rate of 8.28% would require a single payment of the capital borrowed (£930,347.73) plus the accrued interest (£53,859.07), the arrangement fee (£19,246.50), the broker fee (£11,200), telegraphic transfer fee (£20) and legal fees (£1,895), totalling £1,016,568.50.
The total amount payable would be £1,019,226.50 made up of the amount above (£1,016,568.50) plus valuation fees (£1,680), title insurance (£878) and the redemption fee (£100).
The overall cost for comparison is 14.8% APRC representative.
If you’ve decided to make your property dreams a reality, using a mortgage advisor would be the sensible option. Let us know how we can help you with a bridging loan.