Bridging Loan Set up Fees
Most banks and building societies have set up fees when you apply and are accept for a loan. They normal appear on your statement as ‘Admin Charges’. When looking for an independent principal lender of bridging finance, it does actually pay off to see what actual up front fees or set up charges they will or will not apply. If your really lucky, you should find that a handful do not have any up front fees whatsoever, however we compiled a short list of things you need to be wary of.
Broker fee: This means that you are not actually dealing with the lender, but merely an Financial Advisor that may one or many of the lenders. His fee is separate to the actual bridge itself and you could class it as a finders fee as he is looking for the best deal for you. If you deal direct with the actual bridging loans lenders themselves, you should not be charge a brokers fee.
Admin fee: If you see this in the agreement, then you are being charged a fee for all the paperwork that is being done. Again, many actual principal lenders waive this charge. We suggest comparing to other other borrowing companies should you see this in any agreement.
Credit check fee: All lenders will run a credit check on you to ascertain your credit worthiness. It literally costs a couple of pound to do through Experian or similar companies. Query this if you feel it is overly excessive.
Property Valuation: Many lenders are now charging a valuation on the property you would like to use as security, how there are still plenty that do not. If there is a this charge on any agreement, ask what type of valuation they undertake. Is it a full survey? Is it a drive-by survey? Do they just check RightMove for property values in your area? If it is a full survey ask for a full copy of the it or compare the overall cost of the loan against another provider of cheap bridging loans.
Ideally, you can and should be able to find a bridging loans lender that has no set up, barring an administration cost. If you can couple that with a low rate of monthly interest simply by comparing a handful of lenders you have saved yourself all the extra fees, as well as broker’s charges who would do all this for you. It really should only take you an hour to a couple to check the fees that may or may not be charged. Using our enquiry form will send your details toa plethora of direct principal lenders which you can make a comparison through. Good luck in finding cheap bridging loans.