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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.
Use our simple mortgage calculator to see how much you can afford. Please note that these figures are only estimates and you can always contact us to speak to one of our specialist mortgage advisors to discuss your needs further.
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.