Cost of bridging loan

[SpecialHandsMummy]

We have already exchanged on our sale and have agreed on a completion day of Friday. We have yet to exchange on our purchase and the people we're buying from want us to complete on the Tuesday before. In some ways this could be convenient for us (would give us time to clean house etc..) but we require the money from our sale for our purchase. How much would a bridging loan of £150k for the few days cost? Have people done this and found it worth the cost?

As you have what is known as a closed end bridging situation ie you have an exact redemption date with your completion of your sale, this will make it cheaper.

However the arrangement fees are ££££. You can expect to pay between 1% and 3% as an arrangement fee. So for £150k loan that would be between £1,500 and £4,500.
And the monthly interest is likely to be between 0.75% and 1%.

So essentially completing a week later could cost you upwards of £6000.

I would complete on the same day to avoid this and spend your £6k on a nice holiday.