A bridging loan is a fast and flexible type of short-term finance. One of the key benefits of bridging finance over other types of loan is that a bridging loan can normally be arranged quicker than a standard mortgage.
Bridging loans offer a solution in urgent situations when you need access to funds quickly, such as when purchasing property at auction, if you need to move quickly to complete a property purchase, funds for renovation, or any other instance when a traditional mortgage would not be fast enough.
In this guide, based on our extensive experience, we look at how quickly you can expect to get a bridging loan, including a typical timeframe from application to completion, as well as factors that can speed up or slow down this process.
How Quickly Can I Get A Bridging Loan?
Bridging loans are quick to arrange and offer a faster turnaround than traditional mortgages. Although it is possible to have your loan within 48-72 hours, it is more likely that your application will be approved within 24-48 hours, and you can then expect to have the funds released in 2-4 weeks.
Decision in Principle – 24-48 hours – If you speak to an experienced bridging loan adviser, you can usually find out within the same day if your application will be accepted by the lender. This will depend on how much you need to borrow, security, loan term, and how you will pay the loan back.
Bridging Loan Completion – 2-4 weeks – Once all checks have been carried out including credit check, exit strategy, property valuation and conveyancing, the funds will be released to your account.
Factors That Impact How Quickly You Can Get A Bridging Loan
There are a number of factors that will impact how quickly you can get a bridging loan and that may speed up or slow down the process.
Bridging Lender
How quickly you will get your bridging loan often depends on the individual lender, as the process and criteria can vary between each one. Some lenders carry out more rigorous application checks than others, and these more complex cases will take longer. Your adviser will recommend a lender depending on your individual circumstances and the timeframes you wish to work towards.
Loan Documentation
At full application, lenders require a certain set of documents. This will include proof of identity, proof of income, and your exit strategy plan. Based on your requirement, there might be additional document requirements. To progress quickly, provide all requested information as soon as possible, and ensure all documentation is accurate to prevent any delays.
Valuation Survey
Most bridging loan applications require a valuation of your property to ensure that it is suitable security. How long this takes to complete will depend on when a surveyor can schedule a visit to your property. Crystal Bridging Loans has access to lenders offering desktop valuations which are faster because they are performed virtually without a physical inspection of the property.
Legal Processes
Conveyancing is one of the most vital parts of the process which determines the speed. There are a few legal processes involved in bridging finance. It is advised to use a specialist bridging solicitor who understands the need to complete faster, as a solicitor unfamiliar with bridging will slow things down. Bridging lenders understand that speed is paramount in arranging a bridging loan, so will usually have an approved panel of solicitors with experience in bridging to work on their behalf and can act on your behalf too to speed up the process.
Interest Rates
Securing a loan quicker can typically lead to higher interest rates. This is because lenders offer funds fast for a short period of time. The specific rate offered to you will depend on your overall requirement and risk to the lender. The higher the risk, the more likely you are to pay higher interest rates.
Credit Rating, Exit Strategy, Security Property
Having a good credit rating, an asset with high equity as security, and a strong exit strategy will speed up your bridging loan application and will make it simpler to get approved, so you can expect the funds to enter your account quicker.
Get A Bridging Loan, Fast
Get in touch today for an exact estimate on how quickly you can get a bridging loan based on your specific circumstances. Our speed, service, and flexibility allow us to arrange the very best deal for your circumstances.
