Our calculator is intended to provide an approximate guide to all the costs associated with taking out a short term finance facility. However there are many lenders, all of whom offer different interest rates, calculate their interest in different ways and have different fee scales. As independent brokers we will always provide the finance facility that offers the best possible deal.

Please contact us anytime to find the best possible finance deals. We are always happy to provide full finance quotes that fully detail the interest rates charged plus all other costs.

**To provide an indication the vast majority of our bridging loans are written on the following plans**

Up to 40% LTV

0.45%

per month

per month

40% to 50% LTV

0.49%

per month

per month

50% to 65% LTV

0.59%

per month

per month

65% to 70% LTV

0.69%

per month

per month

70% to 75% LTV

0.75%

per month

per month

Loan To Values are based on the open market value, not the lower 90 day or distressed valuation calculations.

Bridging lenders have different ways of calculating, charging and rebating interest. For the vast majority of facilities that we provide the following applies:

**Interest is rolled up**

- Interest is charged monthly on the outstanding account balance.
- Interest payments are not required, therefore the monthly interest charge is added to the account balance each month.
- Each month the outstanding balance will increase due to the compounded interest.

**Clearing the loan early**

- Loans are usually set up on 12 month terms, and there are no early redemption charges.
- The minimum loan term is just 1 month (30 days), meaning if you clear the loan within the first month, interest will be charged for the full month.
- After the first month, interest will only be charged up to the day that the loan is cleared. For example if the loan is repaid after 3 months 9 days, total interest charged will be 3 months plus 9/30 of a month.

(also referred to as Lenders Facility Fees)

For the vast majority of plans lenders charge a 2% arrangement or facility fee, which is calculated on the net or gross loan amount. For most of our facilities this fee is calculated on the net loan amount, not the gross. We are also able to arrange reduced fees on the following basis:

£75,000 to

£150,000

£150,000

2%

facility fee

facility fee

£150,000 to

£400,000

£400,000

1%

facility fee

facility fee

£400,000 to

£1Million

£1Million

0.5%

facility fee

facility fee

Above

£1Million

£1Million

0%

facility fee

facility fee

For the above plans the minimum loan term is 30 days, therefore if you repay the loan within the first 30 days you will still be charged the full 30 days interest. After the 30 day period has ended you will only be charged interest up to the actual day that you clear your loan.

- 0.37% per month up to 60% LTV
- Loan terms up to 24 months
- Facility fee is 2%
- Interest can be paid monthly or set aside

Please note this is not a typical bridging facility in that underwriting is more stringent and it takes longer to put in place. It is a good option if it fits your circumstances, enough time is available for it to be put it in place, and if the loan is likely to run over 12 months (the benefits of the reduced rate is outweighed by the increased facility fee if redeemed within 12 months).

Specialist facilities available for loans ranging from £2 million to £1 billion.

Please contact us for further information.

To use our bridging loan calculator simply enter the loan amount that you require together with the monthly rate of interest (by default the monthly rate of interest is set at 0.49%). Please see the above LTV guide to help select the correct monthly rate of interest.

There is also an option for entering the facility fee charged by bridging finance providers which is added to the loan amount required to provide the gross loan amount (by default this is set at 1%). The facility fee amount is displayed and monthly interest charges are calculated taking this added facility fee into account. For calculation purposes the 1% default can be changed, or removed completely by entering 0. For loans up to £200,000 please enter 2%, above £200,000 and up to £1 million please leave at 1% and for loans above £1 million please enter 0.5%.

The fee amount entered is extremely relevant to the overall bridging loan cost, and this varies between the different lenders. This fee is added to the loan facility.

If you require an indication of valuation fees then please enter the number of properties that are being used as security for the loan, together with an estimate of the combined value of all these properties.

**By clicking on the 'calculate' button the bridging loan calculator will work out the following:**

**Gross loan amount** – this is the total of the loan amount required and the lender's facility fee.

**Monthly interest charged** – this is based on the loan amount required, the lender's facility fee added to the loan and the monthly rate of interest. The figure provided is calculated using the monthly amount of interest charged on the gross bridging loan amount.

**Total interest if loan runs full term** – This is simply the monthly interest charged per month, multiplied by the number of months, this has been entered into the term required box. The figure provided in this box indicates the total amount of interest charged if the loan runs its full term and is not redeemed beforehand.

**Gross loan amount with roll up interest** – if interest roll up is required (the vast majority of bridging facilities are set up with interest being rolled up) the figure in this box provides an indication of the settlement amount required to repay the facility if it runs the whole of the chosen term. The figure is calculated by adding the total interest figure to the gross loan amount.

We use all the best lenders and no two lenders are the same. The cost figures provided are meant as an indication only, as they do vary between lenders. To obtain full accurate figures please give us a call and we will be happy to find you the best possible deal.

**Other costs are an indication as no two lenders are the same.**

**Valuation fees** - will vary depending on type of property, location and value. They also vary from one firm of surveyors to another, and we have to use a surveyor who is acceptable to the chosen lender. Valuation fees are required when it is time to instruct the surveyor, so are required before loan completion.

**Lender's administration fees** - do vary between lenders but are typically £295 and paid on completion, so are deducted from the loan advance.

**Lender's legal fees** - need to be paid, and are also deducted from the loan advance.

**Telegraphic transfer fee** – this is also deducted from the loan advance.

**Redemption administration fee** - is charged by the lender when the loan is redeemed. This fee is usually added to the settlement figure, so is charged and paid right at the end. This is usually in the region of £120.

**Exit fees** – these are also charged upon the redemption of the loan and added to the settlement figure. These fees can be high, typically 1% of the gross loan amount. Very few of our lenders charge exit fees, hence it is very unusual for us to arrange a facility that contains one. Therefore our calculator default has been set at zero.

**Monthly interest charges** - are calculated based on the information provided for the loan rate and also the fee amount.

**When comparing us to other companies please note that we do not charge application, commitment or broker fees. The only upfront fees that we ever require are for valuations.**

Our bridging finance calculator is similar to a mortgage calculator, but instead of calculating monthly repayment figures our calculator provides information about the monthly interest charged and the lenders facility fee. It is important to note that the monthly interest figure calculated is just the interest amount charged, and does not include any capital repayment. Bridging loan interest charges can be set up so that they are either paid each month or added to the loan and paid when the loan is redeemed.

Last updated: 16 March 2018

Interest rates for all types of lending are very much influenced by the price that the lender has to pay for their funds, and also the availability of funds. When lenders are low on funds they will tend to increase their rates, like most supply and demand situations.

It is important to remember that the monthly interest rate charge on any bridging loan is just one of the costs to consider. When comparing facilities attention should also be paid to arrangement fees, broker fees, administration costs, legal costs and fees, valuation fees, exit fees, redemption penalties and discounted rates that are only for a short period of time.

KIS Bridging Loans is rated 4.91 stars by Reviews.co.uk based on 78 merchant reviews

Last updated: 16 March 2018 | © KIS Finance 2018