What are the interest options with a Bridging Loan?
There are three interest options: serviced, retained and rolled-up.
Typically, in all instances, the capital sum is only repaid at the end of the term.
The reason for this is that the purpose of the loan often means a borrower doesn't have the cash to service the debt each month,
but instead relies on the sale or refinance of an asset in order to pay off the loan.
This event of repaying the debt at the term end is known as the exit strategy.
And a viable exit strategy is a requirement of the loan before taking out the finance.
Watch our video and you'll quickly and easily understand the different interest options when you get a bridging loan.
If you're considering a bridging loan or you have any questions about what they can be used for and whether they suit your requirements and situation, get in touch with us today.
We're experienced financial experts who arrange short-term bridging loans for property owners, securing you the best deal from over 200 bridging loan providers, including private investors and family offices.
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