bridging loans when you need to raise money fast
The rate of interest on bridging loans and bridging finance will depend on a number of factors and will depend on the amount of money you borrow in proportion to the amount of money you have as capital. It will also depend on whether you have other mortgages and whether you have signed the contract with the new house. In addition to the bridging loans interest rates there will be other costs you will have to bear. The fees for a start can add up to thousands of pounds and may include fees which seem to be hidden, such as penalty clauses for early repayment or default.
Generally the shorter the bridging loans term then the higher the rate of interest. On the other hand the higher thee interest rate usually means that the fees will be slightly lower. Bridging loans usually involve exit fees and if your loan is arranged through a broker he will probably arrange a fee too. With so much competition out there you will find that its worth your while to use an independent broker who will b able to find you the best deal.
