Volo FS

When considering taking out any loan, the interest rate is one of the main factors that is looked at. Over the last few years, in particular, the cost of short term borrowing has fallen considerably. With bridging loan rates at their lowest ever level, there has never been a better time to use this sort of borrowing.

Low Bridging Loan Rates:

The cost of a bridging loan has come down, since the credit crunch, that saw banks closing their doors to new business. There has been an enormous amount of money put into the market with new lenders popping up regularly.

With the new lenders and competition it has created, lenders are constantly adjusting rates, with many options now available below 1% per month.

You won’t be surprised to learn that qualifying for the lowest of rates is more difficult than more costly facilities. The criteria is stricter and loan to values will be lower.

Headline Rate:

When you have a decision in principle from a lender, you will be quoted the headline rate. This is the interest you will be charged while you stay within the terms of your agreement. So, as long as you are within the agreed period that is what you will be charged.

It is worth bearing in mind the headline rate on an initial quote is not necessarily the bridging loan rate you end up with. It is vitally important when we work with you to have the correct information – any changes can affect the rate and other terms of your loan.