HSBC Bridging Loan Comparison Calculator

Use our bridging loan calculator for quick rate comparisons with HSBC bank. Gain access to the best bridging loan rates sourced in the UK.

HSBC is one of the world’s largest banking and financial service organisations. Founded in 1865 to finance trade between Asia and the West, HSBC has grown to become a global banking powerhouse with more than 38 million customers. According to the bank, its purpose is to “enable businesses to thrive and economies to prosper, helping people fulfil their hopes and dreams and realise their ambitions.

Bridging loans from HSBC

HSBC bridging loans are mainly used for property transactions. They are designed to cover a temporary shortage of credit, hence the term “bridging.” Generally, they’re taken out for only two to three months. In situations where somebody buying a property needs to make a down payment on a brand-new mortgage before they have sold their existing property, a bridging loan could be a suitable idea.

HSBC bridging loan calculator

Our calculator is simple to use and has been made to show interest charges and other costs associated with a bridging loan. There are lots of bridging finance companies that charge many different rates of interest, along with many other costs. These charges differ, making it difficult to offer a bridging loan quoting system online that’s capable of offering quotes for every conceivable circumstance. A bridging loan calculator is only designed as a guide.

What are the interest rates like?

Due to the specialist nature of bridging finance, the interest rate is higher in comparison to loans from traditional high-street banks such as Lloyds, NatWest, and Halifax. You can sometimes have interest payments ‘rolled up’. This means you will not pay on a monthly basis but rather a lump sum at the end of the agreed-upon term instead. This is helpful for those without the required funding in the early stages of receiving the loan.

Fees

On top of the rate of interest, you’ll be paying a set of different fees when you take out a bridging loan, including some of the following:

  • Legal costs: These pay the solicitor and the legal fees of the loan provider and are usually charged at a set rate.
  • Valuation fees: These cover the surveyor’s costs for carrying out a property valuation.
  • Introducer fees: If you use a broker, this pays for their work in terms of finding you a suitable loan.
  • Repayment fee: the cost of the paperwork at the end of the loan term.
  • Exit fee: Roughly 1% of the loan should you repay it early, although not every loan provider will charge exit fees.
  • Arrangement fee: The cost of setting up the loan, roughly 1-2% of the loan.

How to apply for HSBC bridging finance

Almost any limited company, trust, or individual can obtain bridging finance online. Usually, the online application for a bridging loan tends to be quick and simple to fill out. An HSBC bridging loan can be used for almost any reason, so long as the borrower is over the age of 18 and the reason for applying is approved by the provider. Bridging loans always require some form of asset, such as land or property, as security. A bridging loan is a secured loan, which means the loan provider takes a second or first charge over the asset, property, or land being financed.

If the debtor is a company, the loan provider might need further guarantees. Without the ownership of these assets, a bridging loan cannot proceed. The biggest concern for online bridging loan lenders is when and how they will get repaid. Any online loan provider will want to be certain that if they lend funds, they’ll be settled as guaranteed by the debtor.

The security will also be used to work out the loan-to-value of a bridging loan, which works in a comparable way to a mortgage from one of the big high-street banks, such as Santander, NatWest, or Halifax. The LTV shows the size of the loan in comparison with the value of the property.

Typical costs based on 0.55% rates over 12 months

Bridging Loan Amount Repayment Amount (excluding broker fees etc)
£50,000 £59,254
£60,000 £70,148
£70,000 £81,042
£80,000 £91,936
£90,000 £102,829
£100,000 £113,723
£110,000 £124,836
£120,000 £135,948
£130,000 £147,060
£140,000 £158,172

Let our AI software compare rates for bridging loans against high-street banks and other institutions: