Finbud Development Finance calculator
Our Finbud calculator will help you work out the likely costs you will have to pay on your development finance, calculation of other fees and gross development Loan to value (GLTV).
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.
The interest cost calculated is based on interest being serviced or retained
Some helpful tips for doing your calculation:
- 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 are added onto the loan.
- Interest Rate: Interest rate charged on bridging loan based on a monthly interest rate.
- Arrangement fee-a fee charged by the lender for arranging the loan. This is usually 1%.
- Lender exit fee: As mentioned some lenders will charge exit fees. Add the percentage to the box.
The calculator will give you as accurate result as possible but this also depends on you providing as much accurate input as possible. So that you will receive the best use of using the calculator.
What your results will tell you?
Loan to Gross Development valueThis will tell you what your loan to gross development value of your borrowing is. This is used bylenders to express the amount borrowed as a % of the final value development project when it iscomplete. The LGTV is an important factor as it will often determine what rates are available to you.
Total InterestTotal interest is the amount of interest charged over the duration of the loan. This is normally added onto the loan and paid when the development 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 CostThis will work out the total finance cost which includes interest, the arrangement fee and any exit fee that is charged. It will help you understand the full cost of taking out a development 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 youAt Finbud we provide expert advice and will recommend the most suitable development finance product 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 loans.
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