Bridging Finance

Bridging Finance with Mortgage321

Bridging finance can be a vital tool for property transactions that need to be completed quickly, whether you're buying at auction, renovating a property, or dealing with a temporary cash flow issue. However, finding the right bridging loan requires specialist knowledge and advice.

At Mortgage321, our advisors are experts in bridging finance, helping you navigate this fast-paced market with ease. We understand that time is of the essence, and our goal is to secure the best possible terms for your bridging loan swiftly.

We have access to whole of market lenders, enabling us to compare various bridging finance deals and find the most suitable option for your needs. Whether you're looking for a short-term solution to bridge a gap between property transactions or need funds for a quick purchase, we are well-equipped to guide you.

Our team will take the time to understand your specific situation, providing personalised advice to ensure that the bridging finance aligns perfectly with your financial strategy and timelines.

Let Mortgage321 assist you in securing the bridging finance you need, making your property transactions seamless and stress-free.

For expert advice and to explore the best bridging finance options, contact us today.
 
THE FINANCIAL CONDUCT AUTHORITY DO NOT REGULATE BRIDGING FINANCE

Bridging Finance Cost Example

Loan Details:

• Gross Loan Amount: £350,000
• Interest Rate: 1.05% per month
• Term: 12 months

Cost Breakdown:

Interest Costs:

• Monthly Interest Payment: £350,000 x 1.05% = £3,675
• Total Interest (12 Months): £3,675 x 12 = £44,100

Fees:

• Arrangement Fee (1.5%): £350,000 x 1.5% = £5,250
• Valuation Fee (1% of Purchase Price + 20% VAT): £350,000 x 1% = £3,500 + £700 (VAT) = £4,200
• Lender's Solicitor Fee: £3,500 
• Applicant's Solicitor Fee (1% of Loan Amount + 20% VAT): £350,000 x 1% = £3,500 + £700 (VAT) = £4,200
• Redemption Fee (1 Month's Interest): £3,675
• Survey Fee (if applicable): £1,500
• Broker Fee (1% of Loan Amount): £350,000 x 1% = £3,500

Total Costs:

• Interest: £44,100
• Fees: £21,650
• Arrangement Fee: £5,250
• Valuation Fee: £4,200
• Lender's Solicitor Fee: £3,500
• Applicant's Solicitor Fee: £4,200
• Survey Fee: £1,500
• Broker Fee: £3,500
• Redemption Fee: £3,675
  
  Total Cost of the Deal: £69,425

Net Loan Advance:

• Gross Loan: £350,000
• Less Total Costs: £69,425
• Net Advance: £280,575

Summary:

The total cost of this bridging finance deal, with a 1.05% interest rate per month on a £350,000 purchase price, is £69,425. The net advance after all costs is £280,575.

This calculation includes the interest payments, all applicable fees, and a one-month interest redemption fee, providing a comprehensive overview of the financial implications.

Typical maximum loan to value 65-70%

THE FINANCIAL CONDUCT AUTHORITY DO NOT REGULATE BRIDGING FINANCE