How is interest applied on a Bridging Loan?

Interest is usually charged daily and applied monthly, paid in the following ways:

  • Retained Interest – interest is deducted from the gross advance on completion and retained by the lender for the duration of the loan
  • Rolled Interest – interest is added principal debt each month and recalculated.
  • Serviced interest – the borrower pays the interest when due monthly.
  • A combination of above

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