A bridging loan is a short-term finance solution that can be used for a variety of purposes including auction finance and property renovation.
This step-by-step guide outlines the bridging finance application process so that you know what to expect when applying for a bridging loan.
1. Initial Enquiry
Any bridging loan application starts with an initial enquiry, in which one of our expert advisers will discuss your circumstances, needs, and options.
An adviser will talk through what you want to use the loan for, how much you want to borrow, the details of your exit strategy, how long you need the loan for, and what security you will use.
2. Loan Offer
Once our adviser understands your requirements, they will use this information to assess the appropriateness of bridging finance, and, assuming this is met, we will approach a number of lenders to find the best deal for your circumstances. With access to exclusive products and relationships with a wide range of lenders, we can arrange bridging loans to suit all situations.
Once our expert adviser has sourced the right lender for your requirements, they will obtain an Agreement in Principle for you where possible. There is generally a soft credit check that is carried out at this stage.
3. Application to the Lender
Once the Agreement in Principle is obtained or a suitable lender recommended, the next stage is submitting a formal application with the lender.
4. Property Valuation
As part of your formal application with the lender, the next step is a property valuation. A property survey is carried out on the property used to secure the loan. A valuer will visit the security property and assess its value to make sure it covers the loan amount and there are no other issues or defects impacting the lender’s security.
Crystal Bridging Loans has access to lenders offering desktop valuations, which are performed virtually without a physical inspection of the property. However, these are offered on a case by case basis and the qualifying criteria will vary from lender to lender.
5. Legal & Documentation Checks
At this stage, most lenders will instruct a solicitor to begin the legal process. Bridging lenders usually have an approved panel of solicitors with experience in bridging to work on their behalf and can act on your behalf too.
As part of this legal process, you may need to submit a number of documents to support your application including proof of identity, proof of income, credit rating, valuation report, and proof of exit strategy.
If you plan to use the funds for commercial reasons, a business plan may be required. Likewise, if you will use the loan for property development, evidence of your experience in property may be necessary.
6. Release of Funds
The final stage of the bridging loan process is the fund release or legal completion. Once the valuation and all legal checks have been carried out, funds are released and will be transferred into the nominated bank account.
How Long Does the Bridging Loan Application Process Take?
How long the bridging loan process takes, from initial enquiry to the release of funds, will vary depending on your specific circumstances and the lender being used.
Typically, your application will be approved within 24-48 hours, and you can expect to have the funds released in 2-4 weeks. Read more about how quickly you can get a bridging loan here, including factors that will impact its speed.
Contact Us
To get started with your bridging loan application, get in touch with Crystal Bridging Loans today. Our expert advisers will achieve the best bridging loan deal for your requirements and make the process as simple and smooth as possible.
