The costs will depend on your circumstances and the property in question. However, typical interest rates with mtf, secured by way of a non-status first charge bridging loan, vary between 0.75% per month to 0.90% per month, on transactions where the Loan-to-Value (LTV) does not exceed 70%.
At mtf, our loans are tailored to each borrower. Our flexible approach means we can structure your loan to your exact requirements so that you get the service and loan you truly want. Options include rolling interest to the end of the loan term, monthly debt servicing, or a combination of both. Below we explain the various considerations that you should take into account when looking into the different interest options.
Interest on the loan is payable on a monthly basis. This suits borrowers who have stronger recurring cash flow and are able to make monthly payments without unduly stretching their existing financial planning.
Interest for the term is deducted from the advance of the loan. This suits borrowers who are seeking a longer loan term and who need the time and space, free from monthly payments, to finish a project, get their finances back on track or those who wish to avoid compound interest.
Most bridging finance lenders will allow for the costs associated with the loan, including the interest for the term of the loan, to be deducted from the loan advance. This means that the will effectively ‘roll up’ these costs as part of the loan so that the borrower is not actually required to pay these costs until the loan is repaid.
Contact us to Find out More
At mtf, we believe a bridging loan should either make or save the borrower money. We evaluate interest rates on a case-by-case basis. Why not give us a call on 0203 051 2331 or fill in an online enquiry form to get an indicative, no obligation quotation on your enquiry?