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How Much Does a Bridging Loan Cost in Manchester?

Bridging loans in Manchester may come with higher costs compared to traditional mortgages and secured loans, yet they can offer a cost-effective solution tailored to the right circumstances.

We always advocate for incorporating the expenses of a bridging loan in Manchester into the overall budget for refurbishments, purchases, or capital raises to accurately gauge the return on investment.

The costs associated with a bridging loan in Manchester typically consist of six components:

Arrangement/Facility Fees

Arrangement fees vary depending on the loan amount, typically ranging from 1-2% for loans up to £500,000. These fees are usually included in the loan amount and decrease as the borrowed sum increases.

Valuation Fees

Your bridging loan lender will require an independent valuation of the property to ensure adequate security in case of repossession. This valuation fee, usually a few hundred pounds, is typically paid upfront.

Legal fees for bridging loans in Manchester are generally higher than those for traditional mortgages or secured loans. Additionally, you may need to cover the lender’s legal fees.

Choosing a local solicitor is crucial, as some lenders require face-to-face paperwork review. Our service includes assistance in finding a local solicitor experienced in handling bridging loans, if needed.

Broker Fees

Engaging a broker with expertise in bridging product criteria enhances your chances of approval. It’s essential to work with an independent mortgage broker who can access bridging loans and alternative lending solutions.

This ensures you have the best solution for your needs. Your bridging loan broker in Manchester will also help with refinance or remortgage options when necessary.

Interest

With a bridging loan in Manchester, you’ll typically make monthly interest payments to the lender, with rates generally higher than those for traditional mortgages due to the short-term nature of the lending.

Some customers choose to defer monthly payments, allowing interest to compound and be paid as a lump sum upon loan repayment. Interest rates are influenced by factors such as available equity, existing mortgages, and credit scores.

Exit Fees

Some bridging loan lenders may impose an exit fee upon loan repayment. Our bridging loan mortgage advisors in Manchester ensures you understand all applicable fees and their timing, providing clarity on the true cost of finance before you apply.

Without experienced mortgage advice in Manchester, costs and interest can quickly accumulate, affecting your investment. Relying on a trusted broker saves both time and money.

Date Last Edited: May 3, 2024

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