Our bridging loan calculator can really help you estimate what costs might be involved before applying for a bridging loan.
The figures will only be indicative, of course, however, they will help you understand what you might be committing to until you speak to one of our experienced team.
Tools like the Steel River Bridging Loan Calculator will ensure you are more aware of the data lenders collect. Recent research by credit bureau Experian shows that a lack of understanding about personal finance can lead to costly mistakes, another report states that younger people are bearing the brunt of those errors, so it’s important that you fully understand what’s required, regardless of your age or experience of personal finance.
Why should you use a bridging loan calculator?
Using our calculator requires that you fill in all necessary data. You may not realise what depth of information is required – but it is important. Lenders need a full picture about your circumstances before making a decision. So the calculator can help you prepare for the questions you will be asked at the application stage.
The calculator will give you an indication of what costs and financial commitments are required when using a bridging loan. Actual figures might differ, however, due to interest changes and additional fees, for example.
Also, your specific personal circumstances might make a difference and the individual lenders we use might have different terms to those used on the calculator. Bridging loan lenders are constantly reviewing their products, so any changes may not yet be reflected in the calculator but it will give you an overall picture of what your financial commitments if you use a bridging loan.
How does a bridging loan calculator work?
The first question you will be asked is your requirement for a bridging loan. Knowing your figures is essential, of course. You don’t have to know the values to the last penny when using the calculator but being close as possible will help give a more accurate overview.
Lenders need to know why you need a bridging loan. For example, is it for a residential purchase? Are you refinancing a property or is it to buy commercial property or land?
Some lenders also require additional security on a property before offering you a loan. So, the calculator may require that you input this information.
You’ll also need to know the purchase price of the property you are interested in and what deposit is required.
The calculator will ask you to input the length of time you require the bridging loan. Don’t forget, bridging loans are short-term loans, usually between 6 to 18 months. You will need to know at which month you will want to exit the loan and repay it in full.
You will also be asked to input other fields, such as legal fees, stamp duty and a valuation fee. It is worth finding out or getting an indicative figure to give the most accurate results on the calculator.
Some bridging loans are used by investors for refurbishing buildings or to buy land for development. In those cases, different data is required, such as the cost of works. These areas are all available on our calculator, as each applicant is different, don’t worry if you need to miss out some information.
What should I do next?
If you have used the calculator or need help with it, then we can help. Every property purchase is different because it depends on the circumstances of both you and the property. We have years of experience in helping people successfully apply for bridging loans. So contact us today for help.
Remember that your home is at risk if you secure debt on your property and do not keep up repayments
