Understanding the full cost of finance for Bridging Loans for Property Purchase is essential. Rates are higher than traditional mortgages due to the short-term, high-speed nature of the loan. While interest rates often range from 0.75%  to  1.5% per month, the final cost is calculated based on the project’s risk. Key fees to consider include:

* Lender Arrangement Fee: A one-time charge, typically 1% to  2% of the loan amount.

* Valuation Fee: Paid to a surveyor to assess the security of the purchased property.

* Legal Fees: Covering the cost of both the borrower’s and the lender’s solicitors.

* Exit Fee: Some lenders charge a fee upon final repayment, often 1% of the gross loan amount.

Unlike traditional high street banks, securing a Bridging Loan for Property Purchase relies more on the asset and the exit plan. Lenders look closely at two primary factors for the asset being purchased:

1. Loan-to-Value (LTV) Ratio: Lenders typically fund up to 75% of the property’s current value.

2. Developer Experience: While first-time investors may be considered, a clear repayment plan is always mandatory for a property purchase.

Our platform simplifies this by instantly matching your profile to lenders whose criteria align with your circumstances, ensuring the requirements are met for fast approval.

The Exit Strategy is the most critical element of any Bridging Loan for Property Purchase application. It is your formal plan for how you will repay the principal and interest within the agreed-upon term. The two most common routes are:

* Refinancing: Moving the debt to a longer-term Buy-to-Let or commercial mortgage once the acquired property is lettable.

* Sale: Selling the acquired property immediately after a light refurbishment is complete (flipping).

Without a robust, verifiable exit strategy, lenders cannot approve the property purchase loan.