National Westminster Bank, normally referred to as NatWest, is a member of the Royal Bank of Scotland Group. Credited with introducing innovations like telephone banking to the industry in the 1980s, NatWest currently employs around 33,000 people and operates hundreds of branches across the United Kingdom.
Bridging loans are normally used for property transactions. These loans are designed to aid people who are moving house and who wish to purchase a brand-new home before they’ve sold their existing home. When a property owner’s equity is locked up in a mortgage, bridging finance can be used to fund the purchase of a new property without having to wait.
A bridging loan can be especially useful for property managers, developers and people buying auction property. Home-movers may be planning to use a bridging loan to cover a break in a property chain so that they can purchase a brand-new property whilst waiting for a new mortgage to be arranged.
However, it is always important to remember that taking out a bridging loan does not ensure you will get a mortgage in the future.
Bridging loans differ from traditional loan products as they are only for short-term funding issues, whereas long-term loans tend to have more general purposes. Bridging finance is also a lot quicker to arrange, with the funds being transferred to a borrower’s account in a matter of days, compared to a number of weeks where more traditional methods of funding are concerned.
When you compare the cost of a NatWest bridging loan against the more conventional types of property finance, the following factors should be taken into consideration.
Bridging loan size – Bigger loans tend to have higher interest rates because they pose a bigger risk to the loan provider.
Repayment terms – If you decide to take out a closed bridging loan and you have set a concrete date for repayment, the amount of interest you can expect to pay will increase accordingly.
Close bridging loans vs. Open bridging loans – Closed bridging loans have the completion date set in stone, which minimises risk and reduces the interest rate. In comparison, open bridging loans have no fixed repayment date.
Property value – The value of your security will also affect the rate of interest applied to your loan. Again, the more risk a lender faces, the higher the interest will be.
The first step in making an application for a bridging loan is to provide the lender with some basic information. Simply enter the type of bridge loan you want, the property you intend to use as security and your personal details into our online loan application form and when we have received your request for bridging finance we will then contact you for any additional details we require in order to process your application.
Our calculator is fast and simple to use and shows the relevant interest charges and various other costs associated with your bridging loan. There are numerous bridging finance companies who charge many different rates of interest along with a host of other charges. These charges can differ substantially, thus making it hard to supply a bridging finance quoting system online that’s capable of giving quotes for all circumstances. A bridging calculator is meant as a guide only and should be used accordingly. You can also use our online bridge loan calculator to compare NatWest bridging products with financing packages from other providers.
In addition to the interest, you will need to pay a collection of different charges when you apply for a bridging loan, including some or all of the following:
In addition to the interest, you will need to pay a collection of different charges when you apply for a bridging loan, including some or all of the following:
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