Loan Structure
Serviced Interest: Pay interest monthly during the loan term. Principal repaid at exit.
Cost Analysis
Property Value
£500,000
Gross Loan Amount
£375,000
Net Loan Amount
£367,500
Loan-to-Value Ratio
75.0%
Funds Available to Borrower
£367,500
Equity Required
£125,000
Monthly Interest Payment
£3,750
Total Interest Cost
£45,000
Arrangement Fee
£7,500
Exit Fee
£1,500
Valuation Fee
£800
Legal Fees
£1,200
Broker Fee
£0
Total Cost of Finance
£56,000
Rolled Up Interest: Your loan balance will grow to £420,000 by the end of the term.
Effective Annual Rate (APR)
17.9%
Cost as % of Loan
14.9%
Cost as % of Property Value
11.2%
Total Cash Required
£135,000
Monthly Servicing Cost
£3,750
Break-even Rental Yield
9.0%
