The Bridging Finance rates and fees vary amongst the lenders in the market and their are a number of small print charges that we compare, when recommending a lender for our client. We consider all the costs associated with the bridging financing and not just the headline interest rate of the Bridging loan.
Some of the lenders employ clever marketing gimmicks to make the headline rate look attractive but they increase costs by other means.
What we consider when looking at the costs for Bridging loans
1) The interest rate
2) Any arrangement fees
3) Any exit fees
4) Any minimum financing terms
5) If the interest is calculated daily or monthly
6) Legal and valuation fees
Unless you have specific knowledge of these factors and know which lenders charge which Bridging finance costs, it can increase your overall costs of the Bridging loan by thousands of pounds.
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