How are repayments calculated during the bridging period?
While the sale of the existing home goes through, the minimum repayments are usually calculated on an interest only basis. Depending on your lender you may be able to capitalize all repayments until the sale is completed but remember this option will cause your Peak Debt to increase and therefore increase the overall interest you will pay. Wherever possible, making some repayments is recommended so that if you do have difficulties in selling your property, you will not have an additional 6 months repayments added to your loan amount (instead, the amount to be added to your loan will be reduced by whatever you have already repaid). Use our Basic Loan Repayment Calculator to work out how much your potential minimum repayments will be so that you can anticipate the changes ahead.
