Bridge loan calculator
The Finance Company's bridge loan calculator is your trusted tool for assessing bridging loan finances. Whether you are moving from one property to another, have recently purchased a property using auction finance or are considering a property investment, our calculator provides tailored insights to make your transition smooth and financially sound.
Why use our bridge loan calculator?
Bridge the gap between your current and new property with confidence. Our bridging calculator assists you in making informed decisions. By using our calculator you can:
• Calculate the potential financial gap between selling and buying
• Estimate the affordability of your new property
• Plan your transition while considering various scenarios
At The Finance Company, we understand that navigating bridging loans can be complex.
Our bridging calculator empowers you to:
• Benefit from our experienced bridging finance team
• Calculate finances for property values and loan amounts to scale your portfolio
• Receive tailored insights based on your financial situation
• Making your property transition seamless
• Experience a user-friendly calculator that ensures simplicity in your planning
Frequently asked questions:
A “bridging loan” is a short-term loan that typically lasts between 3 - 24 months. It is usually taken out in order to bridge the gap between one property transaction and the next.
Lenders determine the interest rate on a case-by-case basis, taking into account a range of variables for each borrower and loan. They will assess every element of your loan application closely when determining the rate to offer.
Some of the key factors lenders consider are your personal credit history and credit score, they'll also look at the property itself, including the type, location and current valuation as well as the amount you are looking to borrow, the loan-to-value ratio and term.
Additionally, lenders will take into account the complexity of the overall deal. More complicated bridging loans involving multiple properties or borrowers may have a higher rate.
By taking all these factors into account, lenders are able to fully analyse the risk profile of a given loan application and offer competitive interest rates tailored to each borrower's specific situation and needs.
The interest rates, how much you can borrow and other loan terms provided by our bridging loan calculator are for indicative purposes only. Your actual loan terms will depend on the lender's assessment of your individual application and credit profile.
Yes, bridging loans can be used for property investment purposes, allowing investors to secure properties without waiting for the sale of existing ones.
Having a well thought out exit strategy is crucial when taking out a bridging loan. Here are some proactive repayment options to consider:
- Sale of the purchased property - if you are using bridging finance and relying on the sale of the acquired property to cover repayment, make sure you factor in time to market and work with agents experienced in quick sales.
- Securing a mortgage - If you plan to keep the property long-term, work with brokers such as The Finance Company early to get pre-approval for a long term solution to refinance onto once the term ends.
- Sale of other assets - Some borrowers can opt to sell other owned properties or assets if the sale is expected within the bridging term.
- Refinancing other properties - You may be able to release equity from existing properties to repay the bridging finance.