Bridging loans typically have rates around 1% per month, but this varies depending on a number of factors. When financing a property, the net advance will be around 60% with loan-to-value of 70%. So the loan is 70%, but the borrower receives 60%. There is also a lender arrangement fee of 2% or so, and probably a broker fee as well. For property, it will be necessary to pay an evaluation fee, but there shouldn’t be any exit fees.
Key Takeaways:
- The net advance of a bridge loan is normally around 60%, depending on the term.
- There will be a lender arrangement fee of around 2% and probably a broker fee.
- There will be a fee to have the property valued, but there shouldn’t be an exit fee.
“Typical rates for Bridging Loans are typically around 1% but as with any kind of debt financing, the details will depend on a number of factors.”
Read more: https://www.propertyinvestmentsuk.co.uk/debt-financing-the-cost-of-using-a-bridging-loan/
(Visited 8 times, 1 visits today)
Leave a Reply