Costs For Bridging Loans
Exit administration fees
In some instances, you may be required to cover exit administration and exit fees as part of ending your bridging loan. These fees cover the work needed to remove the lender charge from your security property. If you are charged for exit fees, this cost will likely be around 1% of the value of the loan.
Valuation costs
If you own property and are placing it as security against your bridging loan, a valuation will be required. You will need to pay a surveyor to complete this valuation, whether you do so personally or through a specific lender. In some cases, desktop valuations or recently completed valuations may be accepted.
Arrangement fees
Arrangement fees are what you pay to a broker or service to ‘set up’ your bridging loan. These are typically charged on a percentage basis, with 2% of the value of your loan as the standard. For more significant amounts, you may be able to get a smaller arrangement fee of 1%.
