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Initial bridge loan agreement

our bridging loans calculated well first of all let's look at the fees so a bridging loan is going to generally charge you an arrangement fee and what's called an exit fee now it very much depends on your circumstances and also what you're wanting the bridge for but the arrangement fee is paid upfront usually added to the loan and it's something like one or two percent of the loan amount that you're borrowing and it gets added to the bridging finance the next one is an exit fee so when you come to pay that bridge off in 18 months 24 months they're going to charge you in order to be able to pay that off and that again could be something like 1 to 2 percent of the bridging loan itself now in some instances there are bridging finance lenders who will charge you only an arrangement fee and no exit fee it just depends on your circumstances and that's why thinking finance first is absolutely key to being able to get a bridging loan also when it comes to bridging loans it depends on how long you want the loan for it could be anything from 3 months through to 24 months so what a bridging finance lender will do is charge you a monthly rate of interest something like naught point 5 to 1 point 5 percent of the loan that's charged monthly and generally it's actually added to the loan so you don't pay a monthly payment you pay the interest when you pay the bridge at the end of the term so you actually pay the arrangement fee you actually pay the exit fee and you actually pay the monthly interest when you pay the bridge right at the very end when you're clearing it off so it's all calculated based on how much you need and what you're using it for and that is going to dictate your circumstances in terms of and your circumstances are going to dictate the interest rate that you're going to get so if you've got any key questions in relation to bridging all you got to do is just let me know below thanks very much you