Bridging Loans: Understanding The Costs

The total loan or ‘gross loan’ is loan amount lent prior to the deduction of any interest and fees as described below. The gross loan is also the amount due at the end of the loan term. The net loan, is the amount the borrower will receive once any interest and fees have been deducted from the gross loan.

Interest:

Interest is either deducted upfront from the gross loan advance or serviced on a monthly basis.

If interest is deducted for the duration of the loan the borrower may not be required to service the loan interest (assuming the loan is redeemed at the end of the loan term). If interest is deducted for part of the loan term, the borrower is required to service the interest after the deducted interest has been utilised. If no interest is deducted from the advance, the borrower is required to service the interest on a monthly basis, either in advance or in arrears.

Telos Capital typically deducts the interest for the whole loan term.

Arrangement Fees:

Telos Capital charges an arrangement fee which is deducted from the gross loan. The arrangement fee is either 1 or 2% of the gross loan. For example, if the gross loan was £1,000,000 Telos Capital’s arrangement fee would be £10,000 or £20,000.

Other Fees:

All other fees can be found on our Tariff of Charges page.

Net Loan:

When the loan completes, borrowers receive the net loan advance i.e. the gross loan amount less any interest and fees. To calculate how much you can borrow please use Bridging Loan Calculator.

For more information see our Bridging Finance page, and our Bridging Finance FAQs

How can I apply for a Bridge Loan?

To apply, call us on 0207 459 4562 or email us at contact@teloscapital.co.

If your loan meets our lending criteria, we will start the application process. For more information about this process, see our Bridging Loan Application Process.