What is a bridging loan?
A bridging loan is a short-term finance solution designed to “bridge” the gap until longer-term funding is in place. Typically lasting from a few months up to two years, these loans are secured against property and are widely used by property investors, developers, and homeowners.
Why choose a £100k bridging loan?
£100,000 is a popular borrowing figure for property investors and landlords who need fast access to funds. It’s large enough to cover auction purchases, refurbishments, or deposits on bigger deals, while still being manageable to repay once refinancing or selling the property takes place.
Understanding the costs
Before committing, it’s essential to know the costs involved. The 100k bridging loan interest rate will depend on factors such as:
- Loan-to-value (LTV) ratio
- Your exit strategy (how you plan to repay the loan)
- The type and location of the property used as security
- Your experience in property investment
To get a clearer picture, you can use a 100k bridging loan calculator. This will give you an estimate of your monthly interest payments and any fees involved. We provide access to a 100k bridging loans calculator so you can see the likely costs upfront before moving ahead.
£100,000 bridging loan example
Let’s look at a 100,000 bridging loan example to break it down:
- Loan amount: £100,000
- Term: 12 months
- Interest rate: 0.85% per month (example only)
- Monthly cost: £850
- Total interest (12 months): £10,200
In this scenario, the borrower pays £850 per month in interest. At the end of the term, the full £100,000 capital is repaid, usually through refinancing onto a buy-to-let mortgage or by selling the property.
How Fast Property Finance can help
Arranging bridging finance doesn’t have to be complicated. We specialise in securing competitive rates and quick approvals. With our industry connections, we can help you access the right lender, whether you’re an experienced investor or arranging your first bridging loan.
We’ll walk you through the process, explain the costs in detail, and ensure you have a clear repayment plan in place.
Final thoughts
A £100k bridging loan can be an excellent solution when you need funds quickly. The key is understanding the costs, planning your exit strategy, and working with a broker who knows the market.
If you’re considering bridging finance, try our 100k bridging loan calculator today and speak to Fast Property Finance for tailored advice.
