The perfect short-term finance solution
Bridging Loans
Using the bridging loan calculator not only gives us an indication of the costs associated with bridging loans but also enables us to do the necessary research and identify the best available bridging loan deal. There are no preliminary credit checks.
Donkey Finance offers a quick and easy way to compare and secure the best bridging loans. We match you with competitive interest rates from top banks and lenders, ensuring you get the funding you need without any upfront fees.
An explanation of how bridging loans work
When the necessary finances aren’t accessible right away, a bridging loan can be a beneficial short-term solution for buying a house. With these loans, you can purchase a new home without selling your old one, but the interest rates are usually higher than with a regular mortgage. To help you better grasp the pros and cons of bridging loans, we can give you an example of how one works.
How a bridging loan can be used
Here are some instances where bridging loans can be beneficial:
- Get a new place to live before selling your old one.
- You need money to construct or renovate a property.
- Acquisition of real estate through auction.
- Managing immediate cash flow issues.
- Avoiding foreclosure through timely payments.
Typically, you will need to collaborate with a loan broker to secure a bridge loan, as the majority of bridging loan providers do not deal directly with individuals. High-street banks typically maintain separate entities to handle bridge loans, which are only accessible through brokers.
By plugging in some numbers into the bridging loan calculator, we can calculate how much your bridging loan will cost and then use that information to choose the best deal out there.
Preliminary credit checks are not conducted.
Typical costs based on 0.55% rates over 12 months
| Bridging Loan Amount | Repayment Amount (excluding broker fees etc) |
|---|---|
| £50,000 | £59,254 |
| £60,000 | £70,148 |
| £70,000 | £81,042 |
| £80,000 | £91,936 |
| £90,000 | £102,829 |
| £100,000 | £113,723 |
| £110,000 | £124,836 |
| £120,000 | £135,948 |
| £130,000 | £147,060 |
| £140,000 | £158,172 |
Bridging loans: examples and criteria
It’s important to understand how bridging loans work and the criteria involved. The amount you can borrow depends on factors like the value of your property, income, and credit score. These loans are usually short-term, up to 12 months, but terms can vary. The property type also matters—most lenders prefer houses and bungalows, but some accept other property types as collateral. If you need guidance, you can book online bridging loan appointments with our experts to discuss your options in more detail.
Let our loan search tool compare interest rates for bridging loans against high-street banks and other institutions:
