![]() You can also input different interest rates to see how your payments could change depending upon what rate you can get from different lenders. Simply enter the details for the property, loan amount and term length. Using our bridging loan calculator below will give you an approximate idea of how much your monthly repayments could be for this type of finance. The minimum size of a loan is usually £25,000, with upper lending limits of over £25 million, although higher amounts than this can theoretically be offered on a case-by-case basis. ![]() Bridging finance can also be useful in case of chain breaks, short-term cash flow problems, or purchasing an ‘unmortgageable’ property that you plan to renovate. The prompt nature of these loans makes them ideal for use when transaction speed is important to you.Īn example could be a property auction, or buying a plot of land where you need to move quickly. The benefit of a really strong exit strategy means that you could potentially secure a bridging loan within days. It’s also important that your evidence shows you’ll be able to execute your exit strategy within an agreed timeframe. You will have to prove to lenders that your exit plans are realistic, often involving the sale of land, assets, or property. The exit strategy is a similar concept to a repayment vehicle used for an interest-only mortgage. This is your plan to pay off the remaining principal at the end of the agreed term. ![]() They can be quick to secure, but in order to be accepted for a loan, you’ll need access to a suitable ‘exit strategy’. Bridging loans are best used to plug a short-term gap.
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