Fast Bridging Loans for urgent UK finance requirements
The whole point of bridging loans is to acquire funding fast. They serve people who agree to purchase property but do not yet have the funds to cover it. Bridging loans essentially fill the gap, or act as a ‘bridge’, between buying and selling a new property and selling your old.
Fast bridging loans are available to purchase personal, commercial and semi-commercial properties.
They give those on the property ladder access to a large sum of money, making the transaction smoother for all involved. Typically, they’re secured against flats, shops, and commercial units.
The property market can be challenging to navigate, and bridging finance is often required as fast as possible. But how do you ensure this?
At Loan Corp, we work with over 200 UK lenders to secure you the fastest bridging loans possible.
This guide will look at factors that impact bridging loan speed. Plus, we’ll examine everything you need to know about attaining bridging finance fast.
Get approved for a bridging loan in just 24 hours below:
How Fast Can You Get Bridging Finance?
Bridging loans are made to provide clients with cash fast. Sometimes, our clients have received bridging finance within 24 hours of applying.
The whole purpose of bridging finance is to deliver funds to those who need them as soon as possible. However, the speed at which you can acquire bridging loans depends on several variables (more on this later!).
While some of our clients have received a payout within a day, other cases take three weeks to complete.
Generally, the process takes about a week to complete, maybe slightly longer for land bridging finance requirements, as they can be more complex.
While you may have your bridging finance approved within the first 48 hours, it may take a few days to finalise the deal to receive the funds.
However, bridging loans can be approved faster if the borrower is organised. By this, we mean organising a bridging loan before going to auction.
How to Get Bridging Finance Fast
Speedy approval is never guaranteed. However, there are ways to increase your chances of attaining a bridging loan quickly.
The most important thing is to have everything organised before you apply for fast bridging finance.
If you’re hoping to get your bridging loan approved within 48 hours, follow these tips:
Independently value the properties
As part of your document organisation, ensure that both your current and new property are independently valued. This will help determine how big a bridging loan you need. It will also inform bridging lenders that you are organised.
The reports from the independent valuation should be included in your application.
It would also help to have a bridging loan solicitor ready to step into the process if necessary.
Explain the urgency
As with any loan application, it’s necessary to be as up-front as possible. In bridging loans, this extends to explaining to the broker the urgency of attaining this finance. The broker will then be able to communicate this to the bridging loan lender.
If the lender is not informed of the urgency, how will they know that you need the loan immediately? They’ll give your application no special attention.
If priority is given to your application, you can expect the loan provider to charge higher fees than they would have otherwise.
Have a straightforward exit strategy in place
Keeping your exit strategy simple for bridging lenders is normally easy.
Exit strategies normally consist of borrowing and repaying the loan with the money you make from selling your old property. However, the property market isn’t always as straightforward as that.
When detailing your exit strategy, keep it as clear as possible. One thing that delays approval times for bridging loans is complex strategies.
Ensure it’s comprehensible and, above all, low-risk to bridging lenders. Our brokers will read, review, and point out areas for revision.
Deal only with the best brokers
At Loan Corp, our brokers are well-experienced in bridging loans whether you need small or large bridging loans, we can help you access fast finance. We know precisely what the bridging finance lender expects and what can encourage them to pay out as soon as possible.
Our application process is also quick and easy and, if you’re organised, won’t add days to your waiting time as we can get you approved in just 24 hours, start online below.
Necessary Documents for a Quick Bridging Loan
While it’ll be up to the broker to handle the documents speedily, it’s up to you to provide them with everything they need.
Having all documents ready beforehand would be a good idea to speed up the application process.
Documents that you’ll need for a standard bridging loan application include:
- Details of the purchase property – This includes the value of the property you’ve purchased (or going to purchase). This will inform the lender of the bridging loan price that you need. These details should also include any development plans you have for the new asset.
- The price of your loan – While the purchase property value will inform the lender how much you need, you should calculate this for yourself, too. You can use our bridging loan calculator for this aspect.
- Details of your current assets – The assets you currently own and are looking to sell. Specifically, this could be your current house or whatever asset you secure the bridging loan against. You should also provide details of your other properties, such as additional houses or retail units.
- Deadlines of the loan agreement: You should be upfront about when you need the loan and how long you need the loan. If you need the loan within a week for the bridging aspect to work, then you need to be honest about this.
- Your credit score – Credit score doesn’t necessarily impact your ability to attain a bridging loan. However, it’s still important to provide it. You need to include your credit score in your application even if you have bad credit.
- Personal/business background – Proof of income is generally not a requirement. However, you will have to provide some personal details. If you’re applying for a bridging loan for your business, you’ll also need to provide background information for your business.
- Bridging loan history – If you’ve received bridging loans in the past, you need to provide precise details of these. This includes the assets that were bought and sold, how long it took you to repay the loan, and how much you borrowed.
What Slows Down Bridging Loans?
Just as you should be aware of all the factors that speed up approval time, you should also know what factors slow down the process.
You may experience delayed approval rates for the following reasons:
The amount you require
The bigger the bridging loan, the more time the lender will need to review your application. Small amounts are guaranteed to be approved within a matter of days. With bridging loan requests that go into the millions, you’re looking at a few weeks in terms of waiting time.
The property you’re buying
Bridging loans are reviewed on a case-by-case basis. It’s not as straightforward as categorising a property as a commercial or residential purchase. Within these two categories, there are a whole host of sub-categories. With commercial property, for example, you could be a property developer or simply a landlord.
Alternatively, you could be buying business property to turn it into a shop, co-working space, commercial unit, office, and so on. Bridging loans are used for a whole host of reasons.
Each reason has its own application approval time frame. The more unique the reason you require a bridging loan, the longer it will likely take.
The bridging loan type
There are regulated bridging loans and unregulated bridging loans.
To put it simply, regulated bridging loans are for those climbing the property ladder. These loan types are regulated by the Financial Conduct Authority (FCA). They are secured against your current property or assets.
Unregulated bridging loans, on the other hand, are not regulated by the FCA. Because they are unregulated, they don’t have any form of financial protection.
These loan types are used primarily by property developers and other commercial property investors. This loan is secured against properties that the lenders do not live in. Many lenders offer second-charge bridging loans with quick payouts.
Regulated bridging loans need to go through regulatory checks. Because of this, they take longer to finalise than unregulated bridging loans.
One lender may have totally different requirements from the next. Neither you nor your broker can speed up the process that the lender applies to each application.
It may be in their habit to meticulously go through each application and spend an extended period on it. On the other hand, some lenders spend next to no time at all on applications as standard.
Lenders obviously have more confidence in property developers with experience. If this is your first-ever investment property, then a lender may take more time checking over everything. A portfolio of your different investment properties could quicken the reviewing process.
The quality of your exit strategy will definitely impact how long a lender takes to approve or reject an application. If it’s straightforward, they’ll help you bridge the financial gap as soon as possible. If it’s complicated, they’ll spend more time reviewing.
Another personal circumstance that may impact your waiting time is your credit score.
Even if you privately evaluate the purchase property yourself, the lender may still conduct their own. This can add considerable time to the process, particularly if the lender finds any issues with the valuation or legal searches of the property.
On the other hand, some lenders are known to forgo the valuation aspect of the application completely. Additionally, some lenders accept title insurance instead of legal searches. Again, this all depends on the lending criteria of your loan provider.
What Does a Fast Bridging Loan Process Involve?
The process for speedy bridging loans looks almost the same as any other bridging loan process. It also shares similarities with a mortgage application. The only difference is you hopefully get a much faster turnaround time.
When you work with Loan Corp, a fast loan application process will follow these steps:
- You submit all relevant documents to one of our loan brokers. They help you organise these documents and forward them to a bridging loan lender.
- The bridging loan lender reviews your application. They will also organise a property valuation and run a credit check.
- The lender will either accept or reject your application.
- The lender will carry out the property valuation.
- The agreed funds are released and made available to you.
What are the alternatives to a fast bridging loan?
Other fast loan solutions include secured loans, personal loans, and fast house-buying companies.
All of which have their own benefits and drawbacks. High-speed house-buying companies and personal loan options will only provide you with limited financial support.
Can you take out more than one bridging loan?
It’s possible to take out more than one fast funding option from a bridging loan lender. However, this is more for commercial purposes rather than residential ones.
It’s also possible to take out a bridging loan for a property that already has a mortgage. This specific type of bridging loan is called a second-charge bridging loan.
Why Choose Loan Corp to Organise Your Speedy Bridging Loan
You should choose Loan Corp because we’ll help increase your chances of securing bridging loans fast.
Our expert bridging finance brokers can navigate through UK loan providers to find ones that offer special treatment to those who need funds immediately.
We make organising your application easy and can secure you deals with lenders that you wouldn’t attain otherwise.
Get the short-term finance you need with Loan Corp below: