CHECK YOUR LOAN ELIGIBILITY

WHAT ARE THE EARLY REPAYMENT CHARGES ON BRIDGING LOAN?

Bridging loans are given to individuals who cannot go for a long-term loan investment plan with high-interest rates with early repayment charges. The bridging loan literally bridges the gap between these kinds of lenders and borrowers that facilitates easy transactions of a loan repayment option.

The frequently asked questions are stated here to answer all your queries regarding the repayment loan charges and options.

What is the bridging loan interest rate applicable for its takers?

There are three types of bridging loan interest rates available in the market-

  • Service interest-This comes parallel to a normal kind of loan where the recipient pays interests on a monthly based on the bridging loan that is borrowed. Here, early redemption charges are less as compared to other kind of repayment options.
  • Rolled up interest-This is a very common kind of option that the borrowers go for while taking up a bridging loan. In this segment, the total amount is to be repaid at one shot at the end of the term of the loan. In this manner, the burden of paying interests every month also lowers down.
  • Retained interest-Generally the service interest and rolled up interest should get more takers, but surprisingly there are more takers for retained interest loan rates. In this category, the interest rate is paid at the end of the term like he rolled up interest facility. But how different it is then, from this service? The clause that differentiates between these two is that the retained interest rate is charged on the total amount of the sum of the principal amount and the interest amount. This means the loan borrower has to pay interest upon interest to continue with the bridging loan services.

What are the charges designated for taking up a bridging loan service?

The early repayment fees are different for a first timer and a second timer of availing the loan services. The first charged loan is shelled out a lower interest rate than the second timer. It is so because of the risk value that goes up during the second time loan payment.

Suggestion Reading

WHAT IS THE DIFFERENCE BETWEEN A FIRST CHARGE AND SECOND CHARGE LOAN?

HOW CAN I GET A BRIDGING LOAN

HOW CAN I GET A 1 MILLION BRIDGING LOAN?

There is a zero penalty scheme for our borrowers in the bridging finance scheme, through which one can repay the loan amount within the stipulated time frame.

But if anyone fails to repay the amount within the time limit then the amount is deducted from the initial advance that is paid by the borrower at the beginning of the term.

But, there is a way out of this woe as the amount deducted will be directly repaid to the account of the individual after he repays the designated amount to the lenders.

The bridging loan repayment service is a getaway for small-time investors to accommodate their dreams of buying properties to an extreme level of satisfaction.

The helpfulness of the money lenders works wonders in the UK because there are many mediocre individuals who want to achieve their goals but falls short of money.

This kind of bridging loan service enhances people to grow in the real estate sector with flying colors. The goal is to live and let live- the money lenders and the money borrowers both are benefited through this skim.

Know more about Bridging Loans

IS BRIDGING LOAN A SECURED LOAN?

WHAT ARE THE BRIDGING LOAN COSTS?

HOW DO I REPAY A BRIDGING LOAN?

IS BRIDGING LOAN LEND AGAINST ALL TYPES OF PROPERTIES?

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The Finanta Team
The Finanta Team
We are the experts in providing short and long-term financial solutions. Finanta, with its industry experienced team continues to go from strength to strength; growing its knowledge, funding lines and portfolio of satisfied clients. Our team is made up of highly experienced financial specialists. We are one of the most efficient and quickest short-term bridging loan specialists in London.
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