How much should a bridging loan cost?

Big_Ron

Everybody says 'bridging loans are very expensive'. I've just received an offer for a £70,000 bridging loan and not sure what are valid and fair costs versus ones which are not.

Costs before offer provided:
- Independent Financial Adviser - £500
- Application fee for Mortgage Packager - £395
- Valuation of house - £400

Costs in offer:
- Completion fee - £1,400
- Legal fee - £1,020
- Telegraphic transfer - £30
- Title indemnity insurance - £63.60
- Deeds release fee - £35
- Final repayment charge - £100
- Legal fees for redemption - £200
- Broker fee - £1,000

The Finance company also pays the mortgage intermediaries (packager and IFA) £875.

Does anybody have comparable information?

Thrugelmir

Big_Ron wrote: »

Everybody says 'bridging loans are very expensive'.

What's the quoted interest rate?

ACG

Not enough info but in terms off fees, that doesnt seem too bad.

amnblog

You would normally be quoted a gross repayment figure (what you need to pay back) and this includes interest on the loan.

The fees quoted here are in the ball park for this type of arrangement.

Big_Ron

Quote interest rate is 0.85% per month, 11.9% APR.

And total cost is £82,096 including first year's interest but excluding, I think, the upfront costs of £1,295 (£500, £400 & £295 previously mentioned).

Senior_Paper_Monitor

That's about as good as it gets - don't have enough detail to comment further.