What Is The Interest For A Bridge Loan?
What Is The Interest For A Bridge Loan?
So just exactly what is the Interest for a bridge loan, a bridge loan is commonly referred to a bridging loan or bridging finance, interest rates for bridging loans vary enormously, with lenders taking into account where the property that is offered for security is located, what is the loan to value required for the loan, what type of property is being offered to secure the loan against, and whilst bridging loans are non-status interest rates would likely be more if the borrower had a less than perfect credit score on file.
The rates on offer would also depend on what a lender's perceived risk is going to be in getting the loan repaid, often bridging loans are not paid on time and whilst some lenders will agree an extension of up to six months they are also very likely to increase the rate of interest that is payable on the loan.
To give some examples see below.
The best rates on offer start at just 0.45% per month, this would be for a low-risk borrower offering a low loan to value loan and would be a residential property in an area that sees a healthy turnover of properties.
Bridge interest rates could go as high as 1% per month for less than favourable properties such as a commercial one and or with the borrower having credit issues in the past, as a rule of thumb the higher the loan to value the higher the interest rate will be, in addition to this rates could even reach 2% per month in the worst-case scenario, each case is judged on its merits so it is vital that all avenues are explored to ensure you qualify for the lowest rates on offer to you, we search through all of the lenders in the UK to ensure you get the best bridging rates on offer.
Contact us to go through all of the options that are available to you can use chat, our web form or give us a call any time day or night and at the weekend. Call Now 0800 138 6001
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