Before you apply for bridging finance, make sure that you fully understand the cost involved. A broker can help you determine the best bridging loan product for your needs.
You can also use online bridging finance cost calculator tools to get an instant estimate of basic borrowing costs.
Using an Online Bridging Loan Calculator
Bridging finance calculators provide a quick and easy summary of costs associated with bridging loan. Most online bridging loan calculators work in a similar way. They provide estimates of borrowing costs and business rates based on the information provided.
The amount you plan to borrow, the repayment term that you prefer, and the interest rate will be required. The summary of your borrowing costs will be provided to you. You can also adjust the loan amount and repayment terms to meet your needs.
The figures you get from an online bridging loan calculator will only be estimates and not binding. The calculation is entirely dependent on what you provide, so it is important to verify the accuracy of the data.
Mortgage Calculators
A mortgage calculator is a great tool if you prefer to repay your loan interest over a longer time. The mortgage calculator works much the same as the bridging loan calculation, but requires slightly different data entry.
A mortgage calculator will ask you to input the amount you want to borrow and the amount of your deposit. You can also specify the repayment period you prefer. A mortgage calculator allows you to choose repayment terms that can range from 5 to 35 years, depending on which provider.
You can adjust the data that you input to determine which option is most suitable for your needs and budget.
Some standard mortgage calculators are capable of calculating bridging loan rates. Others cannot calculate without entering a deposit amount and a repayment period greater than two years. They are not able to give an exact indication of the monthly repayments for a bridging loan.
Independent Broker Support
Many mortgage or loan calculators assume that applicants are in a strong financial position with good credit scores. Independent broker support is important because there are many factors that can affect the affordability of a bridge loan.
Your broker will assist you in choosing the right facility for you and negotiate on your behalf to secure you the best deal. A broker can also give you a better idea of the borrowing costs that you can expect to incur if you apply for a bridging loan.
