FINBUD BRIDGING CALCULATOR
Our Finbud calculator will help you work out the likely costs you will have to pay on your bridging loan, will provide you with a calculation of other fees as well as the Loan to value (LTV).
In order for you to successfully use the calculator, you will need to fill out each box as accurately as possible and then press ‘Calculate’ and you will receive your results.
Understanding the terms used:
- Property Value: The value of the property to be used as security for your loan.
- Outstanding Mortgage: This is only to be completed if any mortgage you have on the subject property is not going to be repaid by the bridging loan.
- Loan Amount Required: Net loan amount you need before fees and interest added to the loan.
- Interest Rate: The interest rate charged on the bridging loan based on a monthly interest rate.
- Lender Arrangement Fee: The fee charged by the lender for arranging the loan
- Lender exit fee: As mentioned some lenders will charge exit fees. Add the percentage to the box.
The calculator will give you as realistic a result as possible but this will also depends on you providing as much accurate input as possible.
This will enable you to make the best use of the calculator.
What your results will tell you?
Loan to Value (net loan)
This will tell you what the loan to value of your borrowing is. This is used by lenders to express the amount borrowed as a % of the property value. The LTV is an important factor as it will often determine what rates are available to you.
The maximum loan to value we can usually achieve depends on different property types. We can usually achieve the following:
| Security | Max LTV |
|---|---|
| Land without planning | 50% |
| Land with planning | 65% |
| Residential (Regulated) | 70% |
| Commercial | 75% |
| Residential (Unregulated) | 80% |
Total Interest
Total interest is just the amount of interest charged over the duration of the loan. This is normally added into the loan and paid when the bridging loan is repaid. It can also be subtracted from the loan, which means that the net loan is reduced by the cost of the interest.
Total Finance Cost
This will work out the total finance cost which includes the interest, lender product fee and any exit fee that is charged. It will help you understand the full cost of taking out a bridging loan from start to finish. However, you need to bear in mind, that it does not take into account any legal fees, the valuation fee or any admin fee the lender may charge.
How Finbud can help you
At Finbud we provide expert advice and will recommend the most suitable bridging loan in relation to your circumstances. We are totally transparent in our service to you and do not charge any broker fees or application fees for standard cases.
