How Quickly Can You Get a Bridging Loan?

Bridging loans are some of the most looked up funding methods nowadays for people who need money for a new house. They are another alternative to your typical mortgage. When you don’t want to lose a good deal on the house, or you want to get a house from an auction before another investor does, you can make use of a bridging loans.

Looking up these loans on search engines will always reveal one thing – that they are swift to get. However, how long precisely till you obtain your bridging loan? This article will explain it to you.

fast bridging loan

So How Fast Can You Obtain a Bridging Loan?

You might think that a bridging loan can be taken at the snap of your fingers. With how some lenders advertise their bridging loans, it seems that in 24 hours you will get your money. Well, although there are situations when you can get your loan that quick, the reality is different most of the time.

On average, it takes between 5 and 14 days to get a bridging loan. In some cases, it can take even longer, especially if you go to a lender who undertakes a more careful application process. In this case, it might take between 14 and 21 days for the application to be completed.

Can You Speed Up Your Application?

Bridging loan lenders will always make sure to grant you access to your loan as quickly as possible, so you can use it for whatever you need before it’s too late. The lender is the main factor when it comes to the quickness of the process. Still, the lender isn’t the only one who can help the process. You can try to help speed it up a little too.

When you apply for a bridging loan, there will usually be a few documents and details that you’ll have to offer the lender for the application to be processed. Property valuation reports and confirmation of ID are examples of documents that will be required to make sure you are trustworthy for a bridging loan. Therefore, you need to have all the documents ready when the time comes, so you can immediately send them back and not make the processing time longer.

Before you apply for a bridging loan with a lender, it’s essential to check the lender’s requirements for documentation and have all of them ready.

Is There Anything that Could Delay Your Application?

There are indeed instances where your application process could be slowed down. For instance, bridging loan brokers operate differently, so one could take longer than another, in which case your application gets delayed. 

But the amount of time it takes to get a bridging loan could also be affected by the verifications needed when the lender processes the application. The lender will have to make some checks, such as making valuation reports. These could take a while, which will slow down the entire process of getting your loan. Sometimes, a lender could also forego a survey report. 

Also, you will not be able to secure your loan at the speed of light when you want to make sure to get the lowest repayment rate. After all, the repayment rate is calculated depending on how risky it is for the lender to grant you this form of financing. With that in mind, it’s obvious it will take a while to price the bridging finance accordingly. 

Aside from the valuation reports, the lender you picked will also perform some legal searches. These don’t take just a few minutes to come back. In fact, it could take a few weeks, which will delay your application a bit. You can get around this by offering title insurance as a replacement. 

However, it’s important to take into consideration that not doing these things will reduce the amount it takes for the application to be completed but will increase the risk for the lender. As a result, you can expect an increase in the amount of cash you will have to pay back. Think carefully about this. 


What Steps Does the Application Process Include?

If you want to understand how long it takes to finally receive your bridging loan, you have to know the steps you will go through with the lender. 

·      Contacting the Lender

The first step you have to go through is, of course, talking to the lender. This is important for establishing what you need. For instance, when talking to the lender, you have to let them know what assets you have available for security, how much you need to borrow, how long you need the loan for, how you intend to pay, and so on. All of these are important in making the lender decide if they should continue with this or not, as your answers will give him/her more details about you. 

To make sure you also have a good, experienced lender that takes this application process seriously, you will have to carefully search for them. Don’t go with the first bridging loan lender you find – instead, compare the ones you come across and decide which one is the best depending on their offers. 

After talking to the lender, you should be given a decision very quickly regarding whether you’re accepted or not. It should take no longer than 24 hours. The lender will make an offer depending on your situation, and if you accept the offer, you will have to go and provide proper documentation for your application process.

·      Providing Documents

Normally, it’s ideal to have the documents ready for when the lender will need them. But if you don’t, make sure to get them as quickly as possible. The documents will be thoroughly checked to make sure you are someone worthy of receiving bridging loans for property development or purchase. In some cases, the lenders will require additional papers. The faster you get them, the quicker your process is going to be. 

·      Valuation

Bear in mind that with bridging loans, you will generally have to use your property as security to be valued. You will borrow bridging finance in an amount that is a percentage of the worth of the property. This is what’s known as the LTV, aka the loan-to-value rate. 

To estimate the worth of your property, your lender will have to ask a valuer to write the valuation report. This person will look at the condition of your house in comparison to others in the area and write a valuation report based on that. After all, they cannot rely on you to tell the value of your property. For all they know, you could overvalue your own property for the sake of obtaining a better rate. 

However, if there has been a survey done on your property recently, the chances are that the valuer will accept this and not visit your property anymore. The good thing about this is that the valuation process will take less time, and your application will go faster. Conversely, if the valuer has to visit your property, the process will depend on when the valuer has scheduled the visit. 

Loan to value rates is typically between 65% and 70%. 

·      Legal Work

It shouldn’t be any surprise that securing a bridging loan will also involve some legal processes. It’s necessary to employ an expert bridging loan solicitor because they will be able to properly deal with the legal work. Also, they understand that you need this to be done quickly. 

bridging loan money

How Can You Find the Right Solicitor? 

Arranging a bridging loan is different from arranging a mortgage. Therefore, you need a specialised solicitor to arrange your bridging loan. Still, there are several things you need to take into account when looking for a solicitor.

For instance, you need to ask them for specific examples of cases when they arranged bridging financing successfully in the past. Also, you will have to ask the solicitor about their experience when it comes to dealing with bridging loans. Bear in mind that both the person and practice you’re dealing with have to be experienced in this field.

Also, it’s important to ask about the workload of the solicitor. They should have enough time to deal with your bridging financing too. In some instances, they may act as if they have the time when they actually don’t.

You also have to let them know how fast you want the application to be. You can specifically let the solicitor know the date you have in mind for the completion of the process.

Final Thoughts

Bridging loans might not have the same fees and charges as a standard home loan, but they are good alternatives to using when you want faster access to money for a new house. But how long they take depends on the particular lender, and on how fast you can provide the necessary documents. Hopefully, you will be able to speed up the process and get your cash quickly enough. 

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