Use our loan search tool to get a better rate bridging loan than Halifax
Halifax Bridging Loan
Want a better rate than Halifax? Get an instant indicative repayment figure using our bridging loan calculator
Use our bridging loan calculator for quick rate comparisons with Halifax bank. Gain access to the best bridging loan rates sourced in the UK. We are open till late to take your enquiry on.
Halifax, a wholly owned subsidiary of Lloyds Banking Group, was officially founded in the year 1852. Halifax, one of the first true ‘building societies’ to open its doors in the UK, was established to help address the country’s severe housing shortage. Halifax now forms part of the Lloyds Banking Group, which employs more than 75,000 people, has over 30 million customers, and is the UK’s leading provider of current accounts, savings, personal loans, credit cards, and mortgages.
Compare Donkey to Halifax bridging loans
Typically, bridging loans are used for the purchase of a property. These loans are designed to help people who are moving house and who want to acquire a new property while their existing home is on the market. When equity happens to be locked up in a mortgage, a Halifax bridging loan may be appropriate to finance a property purchase. They can be especially valuable to property managers, meaning those people who are buying property at auction, and developers.
Home-movers may want to use a bridging loan for a variety of reasons, one example being that they wish to avoid getting stuck in a property chain so that they can purchase a new property while waiting for a mortgage. Nonetheless, it is important that you keep in mind that obtaining bridging finance doesn’t guarantee you’ll obtain a mortgage in the future.
Halifax Bridging Loan Calculator
Our calculator is fast and simple to use, and it is provided to compare interest charges and various other costs associated with bridging finance. There are numerous bridging finance companies that all charge a range of different interest rates, along with a host of other charges. These charges differ considerably, making it impossible to provide a bridging loan quoting system online that’s able to offer quotes for all circumstances. A bridging finance calculator is meant as a guide only. It is, however, based on the best and most popular bridging plans available at that time.
Comparing a bridging loan to a regular secured loan
Theoretically, they differ because bridging finance is used for short-term financing purposes only, whereas most other loans tend to be used for long-term financing. The speed of getting the cash transferred into your account is another major difference between these two loans. It can take weeks for high-street lenders such as Barclays to complete a loan; however, bridging finance can be arranged in 1 to 2 days.
How high are the interest rates?
Adding up the amount of the loan, interest, and administration fees ought to give you a good insight into the costs involved.
- Loan size: Bigger loans usually have higher rates of interest due to the fact that they pose a greater risk to the lender.
- Repayment terms: If you have taken out a closed bridging loan and have set a concrete date for repayment, the term of your loan might impact your interest rate, with longer loans subject to higher interest rates.
- Closed bridging loans vs. open bridging loans: closed bridging loans have a set repayment date, whereas open bridging loans don’t have to be repaid by a set date.
- Property value: How much your security is valued at also affects the interest applied to your loan. Once more, the more risk lenders face, the higher the rate is going to be.
Charges
In addition to the interest, you will need to pay a collection of different charges when you apply for a bridging loan, consisting of some of the following:
- Valuation fees: Valuation fees cover the property surveyor’s costs for performing a valuation of your property.
- Legal costs: This pays the solicitor and legal fees of the loan provider; normally, legal fees tend to be charged at a set rate.
- Introducer fees: If you use a broker, this pays for the broker’s work searching for a loan.
- Arrangement or facility fee: The cost of setting up the bridging finance, approximately 1-2% of the loan.
- Administration fees: the cost of the paperwork at the end of the loan term.
- Exit fees: roughly 1% of the loan—should you pay it back early? However, not all lenders charge this.
| Browse all Halifax comparison services | |
|---|---|
| Halifax Bridging Loans | Halifax Commercial Finance |
| Halifax Development Finance | Halifax Loans |
| Halifax Mortgages | Halifax Auction Finance |
How to apply for Halifax bridging finance
Having some security, such as commercial property, land, or residential property, and a reasonable credit history are the two things you will need to pass eligibility before you make an application for a bridging loan. The next step involves filling out av loan application which is readily available to be demonstrated via online appointments should you encounter any trouble doing this.
With a bridging loan, the key things lenders look at are the loan to value assessment, quality of the exit strategy and the value of the asset you’re offering as security. This is not cheap finance, so you have to know how you’re getting out before you get in.
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 |
As previously noted, the majority of bridging loan lenders do not deal directly with the general public, thus in order to obtain a bridge loan, you will typically need to go through a loan broker. For the purpose of managing bridge loans, which are only available through brokers, high street banks typically maintain distinct companies.
Let our loan search tool compare interest rates for bridging loans against high-street banks and other institutions:
