While you may know that bridging loans are one of the quickest financing products to arrange, if you’re in urgent need of funding, you might need to know what that means in practice!
Many clients want to know how soon their bridging loan will be approved, particularly if they have an important deal on the table and don’t have time to wait.
This summarised guide from our mortgage brokers explains what to expect from a bridge finance application, what might slow down your completion date, and a few tips to speed things up if you’re in a hurry.
How Quickly Can I Get a Bridge Loan?
Now and then, we see reports of bridge loans completed in 24 hours, although it’s important to clarify that this is an exception and usually means the circumstances were extremely straightforward.
For example, suppose a lender is familiar with the client or already has other live credit facilities with them.
In that case, they’ll be able to zoom through the approvals process and make an offer much faster than normal.
However, bridging finance is extremely fast compared to conventional mortgage borrowing.
On average, we’d say that most loans are organised within five to ten days, or a week or two at the outside, so plenty of time to raise capital for an auction purchase with a 28-day deadline.
It’s vital to consult an independent broker if you’re up against it. Sometimes, the cheapest bridge loans command a more rigorous eligibility assessment process and can take upwards of three weeks.
Revolution Brokers works with a vast range of clients who need a bridge loan expedited, and we can get an indicative agreement on the table in hours if you have all the necessary information and documents to hand.
What Factors Will Delay My Bridging Loan?
All sorts of things can stall your bridge loan approval, and sometimes it’s simply a case of picking a lender with a reputation for quick turnarounds.
Many borrowers are torn between a desire to get the lowest interest rates and needing prompt financing. That toss-up exists because a lender won’t offer extremely low rates to any applicant without being convinced they’re a safe bet.
That said, the checks are not extensive because:
- Bridging finance doesn’t usually require a comprehensive valuation report like a mortgage, which takes weeks to organise.
- Legal and title searches are greatly reduced, and some lenders will be happy to get the ball rolling with title insurance.
Of course, the more concessions a lender makes, the more you’ll pay in charges and interest.
What Can I Do to Speed Up a Bridge Loan Application?
An experienced bridge loan broker will play a big part in expediting your application, although much still depends on the lender you choose.
There are several things you can do, such as:
- Providing comprehensive details in your initial application.
- Collating all the required documents (ID, proof of exit strategy, property survey, etc.) ready to progress to a full offer.
- Returning all the information immediately.
Another aspect is choosing a great solicitor who can complete the legal side of the loan without delay.
Bridging loans are somewhat of a specialist product, and the process required is very different from a conventional mortgage. Hence, a solicitor with experience in arranging this type of financing is ideal.
Is There a Way to Speed Up Completion of My Bridging Loan?
Once you’ve received your loan offer, you’ll normally be asked to submit documentation to back up all the details included in the original application – the sooner you do so, the sooner the lender will be able to move forward.
We always advise clients with a finite deadline to discuss their application with us before getting to this stage, clarify any questions a lender is likely to have, and flag any element of the application that we know will raise a query.
- Is a lender likely to need a full valuation, and how quickly can you book this?
- Which lenders accept indemnity policies rather than a full property search?
- How strong is your exit plan, and what can you do to prove that it’s a stable loan repayment option.
As highly skilled brokers, the Revolution Finance team will work through your requirements and assess which lenders are most suited, depending on our knowledge of their underwriting policies and your circumstances.
For more advice with finding a bridge loan with a rapid turnaround time, assessing your application, or choosing the optimal lender, please get in touch at your convenience.
Our friendly team is available on 0330 304 3040 or via email at firstname.lastname@example.org and will ensure you have the best possible chance of completing your bridge loan well before your deadlines.