Tesco Bank was established to provide simplified yet intelligent financial services for ‘real’ people across the UK. Despite starting out as a small sub-brand with limited services on offer, Tesco Bank now has more than 8 million customers and continues to grow.
Bridge finance is a borrowing product that is primarily used for property purchases. It is designed to cover a short-term gap in a person’s finances. In general, it is taken out for two or three months at a time. In circumstances where somebody buying a house has to make an initial down payment on a new mortgage prior to selling an existing property, bridging finance can help.
Given the unique nature of bridging loans, the interest is higher than loans provided by traditional high street banks such as Halifax, Lloyds and NatWest. You sometimes can have interest payments ‘rolled up’, which means you will not pay every month but pay a lump sum at the end of the agreed term instead. This makes it useful for those without the required funds at the start of the loan.
Any company or individual can apply for a bridging loan online. The actual process is quick and easy to complete. Bridge loans can be used for practically any reason, provided the borrower is at least eighteen and the purpose is legitimate. These loans always require some form of asset, such as property or land as security.
Bridging finance is always provided as a secured loan, which means that the loan provider requires first or second charge over a property or the land that is being financed. If the debtor is a company, the bridging provider may require additional security. The idea is that providing security for the loan company guarantees that the loan will be paid back. Without any assets, an application for bridging finance won’t be approved.
The chief concern for online bridging lenders is how and when the loan will be paid back. Lenders must be sure that when they advance funds, they will eventually be settled by the debtor in full. The value of the asset is used to calculate the LTV or loan value of the bridging loan, which works in the same way as a mortgage provided by one of the bigger high street banks, such as Barclays, Santander or the Yorkshire Bank. This illustrates the loan in comparison with the worth of the property being used as a security asset. Ergo, the overall loan must fall within the LTV.
A bridging finance calculator is a specialist tool that will provide a good overview of the expenses associated with acquiring short-term finance. Of course, there are many loan providers operating in the UK, all of whom calculate their interest in unique ways, offering various rates of interest whilst having different fees and associated costs. As an independent broker, we always source the most suitable financing option that offers the most advantageous deal for you.
A bridge loan calculator is very similar to other financial calculating tools such as mortgage calculators, but instead of working out the monthly repayment figures, a bridging loan calculator provides detailed information on the amount of interest charged each month and the actual facility fee.
It is of paramount importance to bear in mind that the actual interest amount only represents that interest amount itself, which does not cover the capital repayment. Bridge loan interest charges can be organised so that they are added to the loan and paid when the loan is redeemed or paid monthly.
To get the best quote available, please do not hesitate to contact us. We are always glad to provide in depth quotes that show you the interest charged along with all other fees.
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