How Just Mortgage Brokers Can Help You
How much will your bridging loan cost in total? Adding up the loan amount, admin fees and the interest you will pay should give you an accurate figure. But how high are bridging loan interest rates? And what factors can affect how much interest you’ll pay?
Factors that effect the interest you can pay on bridging loans
- Open vs. closed – Open bridging loans do not have a set repayment date, while closed bridging loans have the completion date set in stone, which reduces risk and lowers interest rates.
- Property value – The value of your security property or properties will also affect the rate of interest applied to your bridging loan. Again, the more risk lenders face, the higher the rate will likely be.
- Loan size – Larger bridging loans often have higher interest rates because they pose a greater risk to the lender.
- Repayment terms – If you’ve chosen a closed bridging loan and set a concrete repayment date, the length of your loan may affect your interest rate – with longer loans subject to higher rates.
Do you want to learn how to get a better interest rate on your bridging loan? Discuss your individual circumstances in confidence, with no obligation, with our experienced team today. Contact Just Mortgage Brokers.