Bridging loan calculator and instant quote

Why choose a Bridging Loan?

• What is a Bridging Loan - How Does it Work?

  A bridging loan is short term finance which can be used to "bridge the gap" until longer term finance or another repayment strategy has been arranged. For example, High Street Banks often take several weeks to underwrite and complete a loan transaction; in some cases this is not quick enough for the borrowers, so a bridging loan can be useful as it can be arranged and completed in a matter of days.

  Another factor that sets a bridging loan apart from more conventional loans is that the loan is not always underwritten on the borrower's financial status but rather on their collateral, such as the property they own.

  It should be noted that lenders offering bridging require the borrower to provide details of a realistic exit strategy for repayment of the bridging loan.

  At Bridging Experts we are expertly placed to arrange the best deals and loan rates from major UK short-term lenders.

  Our team can also advise you on what a bridging loan is, how it works and how it can work for you. We can help you make an informed decision on whether bridging is right for you.

• Bridging Finance Loan Rates & Interest Rates

  Bridging loan interest rates are typically higher than interest rates for longer term loans. Lenders generate profit by adding interest over the life of each loan they provide, therefore they earn less interest on loans taken over a short period than they do on loans taken over a longer term. Bridging loans are usually arranged for 18 months or less, meaning lenders typically charge higher interest rates for this type of finance.

  Bridging lenders can also experience a higher resource cost for processing bridging finance as there is often a need for a higher ratio of underwriters to cases to ensure fast completions are available for consumers.

• The Benefits of Bridging Loans

  Bridging loans can offer many benefits, including fast access to finance. Although time frames vary, money can be available within 48 hours after the borrower has qualified for the loan.

  Bridging has become more popular over the last few years as borrowers discovered that bridging finance is often available when traditional loans are not.

  A bridging loan can be highly beneficial for those purchasing a new property when they do not wish to wait for their current property to be sold.

  Individuals who plan to purchase properties, renovate them and resell them before the terms of the loan expire can also benefit from this type of finance.

  Borrowers with limited financial resources may also seek bridging finance and this trend has escalated since the financial crisis in 2008.

  Ultimately all consumers must decide for themselves which lending arrangements offer the most benefits based on their individual circumstances. Those who are unsure should speak with our team of bridging loan experts and we will be able to provide a free, non-obligation bridging loan quotation.

• Our Bridging Loan Calculator

  Our bridging loan calculator is used to calculate interest and repayments. It is important to note that interest rates for bridging finance also depend on other factors such as the value of the borrower's collateral and, in some instances, the borrower's credit history.