Bridging Loan Costs

kirstyb_2

Hi. My husband and and I have bought a new property and we need to bridge for 3 weeks until the new people move in. We've decided to get our solicitor to arrange the bridging as, although it may be more expensive, it should be a lot less hassle. We will be bridging for the total purchase price of 325.000. The charges are a 250 pound set up fee plus 2.5%. above the base rate. I'm absolutely rubbish at maths so can anyone tell us roughly what this should cost for the 3 weeks?

Thanks, Kirsten

silvercar

5.5% is the bank base rate. So 5.5+2.5=8%

8% of 325,000 is 26,000. I presume this is an annual rate, so for 3 weeks it should cost about 1,500.

Add on your 250 set up fee and the total is £1,750.

kirstyb_2

Thanks for this. It's not cheap but pretty much what we expected.

silvercar

I would check that the "2.5% plus the base rate" is an annual fee, though I can't think of anything else reasonable it could be.

Also check that there is not a minimum time period that you have to pay for. If the minimum is a month the charge becomes 2167+250=2417.

If the figures are right, you are getting a reasonable rate; I would have expected an all in figure of about 1% = £3,250 here.

apk1

Got to say that looks very cheap, if you approach your bank for example they will be looking at similar interest but possibly 2-3 % arrangement fee, + valuations/legal fees, you say the solicitor is arranging are they funding themselves, or just arranging through somebody else ?

geniejj

Need to check if its an annual rate. If its monthly its v.high.

If it is annual its competitve. Just watch any minimum term,arrangement and exit fees.

If its an annual rate PM me you could do a lot better - bridging is often a lot less hassle because of the fees involved.