The key to obtaining a reputable bridge loan is making sure that you can get a reasonable rate while avoiding any potential penalty fees. Most bridging loans have initial fees resting at 1%, but this can vary from company to company. If you are using these loans for development finance, there may be an exit fee if you choose to leave the loan early for any given reason. Broker fees are also likely to be involved.
Key Takeaways:
- Most bridging loans have fees that are about 1% on average.
- You can expect to pay an exit fee if you are utilizing a bridging loan that is developmental.
- Another fee that you will have to take into consideration is the fee for the broker.
“Today Rory and Amy discuss the cost of debt financing and try to pin down exactly what an average bridging loan would cost a property developer to make use of.”
Read more: https://www.propertyinvestmentsuk.co.uk/debt-financing-the-cost-of-using-a-bridging-loan/
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