Bridging loans are ideal for property developers to fund residential and commercial property transactions. As the name suggests, they bridge the financial gap before the sale of another property or the completion of an existing development project. Bridging finance is short-term, quick finance and can be accessed in as little as 5 days, providing you have knowledge of the application process and the help of a professional broker.
Bridging loan lenders can offer fast lending decisions, providing you fit their criteria and submit your application correctly. A broker can speed the process along, with a fast bridging loan, helping you obtain the funds you need to move forward with your plans without delay.
Development bridging loans are beneficial to property investors who need access to fast finance, as it gives them the freedom to make decisions quickly and pursue attractive property purchases without having to wait for long-term financing. They can also offer a viable solution to private property owners until a mortgage is approved.
To make sure the process is as fast and smooth as possible, please read on for further advice.
Get urgent bridging loans fast with Bridging Options
At Bridging Options, we work with experienced brokers who specialise in sourcing short-term bridging loans from specialist bridging lenders. They can significantly speed up the application process and improve the chances of your loan being approved.
When seeking bridging finance, a knowledgeable broker can provide valuable guidance on the best product for your needs. They have a detailed understanding of the bridge loan industry and can help you find a competitive bridging loan that is tailored to your specific requirements.
Allow Bridging Options to save you valuable time, money and hassle when securing your next bridging loan. To start the enquiry process, please fill in our contact form.
How do fast bridging loans work?
Fast bridging finance provides upfront capital to bridge the gap between purchasing and selling a property. Bridging loans are typically secured against the borrower’s assets, which is why loan providers can work quickly in assessing applications and providing funds.
Bridging loan terms can range from 1 month to 12 months, and the loan can usually be repaid early with no exit fees.
The interest rate on bridging loans is higher than traditional mortgages and typically ranges between 0.4-1.5% per month, depending on the lender and borrower’s circumstances. Interest is charged monthly, but can be rolled up and paid with the loan amount at the end of the term.
How quickly are bridging loans approved?
Bridging loan approval can be as fast as 24 hours, and, in theory, funds can be released within 48 hours. But that requires lots of ducks in a row and is rare. A more realistic timeline, however, is within 5-15 working days – still significantly quicker than arranging more traditional forms of finance.
Bridge loan providers are able to make a much quicker decision than mortgage lenders. Mortgage applications tend to be rigid and formulaic while bridging lenders’ terms are more flexible, and they assess each application on a case-by-case basis
At Bridging Options, we understand the importance of speed when it comes to bridging loans, and our experienced brokers can help you access the funds you need quickly and smoothly.
What is the criteria for getting a bridge loan faster?
Lending criteria may vary, but the better you can fit into the following criteria, the more likely you are to get a quick decision on a standard bridging loan.
Age. Bridging finance applicants must be aged 18 or over.
Loan security. You must have assets to secure a bridging loan so that if you default, lenders have the assurance they can recoup their money. This could include cash, land or property.
Deposit. Bridging finance providers typically require between 25% and 40% of the loan value as a deposit. Some will offer more depending on the market value of the property. Generally, the greater deposit you can offer up, the lower the loan-to-value ratio will be, making it much more likely to be approved quickly.
Exit strategy. You must be able to demonstrate a clear exit strategy, i.e. your plan for paying back the loan, such as refinancing with traditional lenders or selling the property.
Credit score. A good credit history can help speed up the approval process. However, specialist bridge loan providers are generally more concerned with your current finances and the validity of your exit strategy.
Track record. If you have proven success in property development, it is likely to go a long way with the lender.
How can I get a bridging loan faster?
For fast funding, it helps to have your paperwork in order in advance. The help of a good bridging finance broker will also ensure that the process is faster and more hassle-free.
#1 Prepare your paperwork
To improve your chances of being approved for a bridging loan quickly, you should make sure to provide all relevant paperwork, including:
- Proof of ID (passport, driver’s license)
- Proof of address (utility bill, bank statement)
- Bank statements for at least the three previous months
- Evidence of assets (property valuation, land registry documents etc.)
- Evidence of liabilities (mortgage statement, loan agreements etc.)
By providing all the necessary documents upfront, you will be in a stronger position to secure quick bridging loan approval.
#2 Work with an experienced broker
Using an experienced bridging finance broker can also help speed up the application process. Brokers have their finger on the pulse of the current market, and access to a wide range of high street and specialist loan providers.
That means they can make a quick assessment of which lenders are most likely to approve your application based on your specific circumstances. By approaching the right lenders, a broker can ensure the bridging loan process is not delayed, saving you valuable time and effort.
Why choose Bridging Options?
At Bridging Options, we work with experienced brokers who can help you secure bridging finance faster. They have access to a wide range of bridge loan providers and can pinpoint the right one for your needs. This will streamline the process so that you can access the funds you need as quickly as possible.
Your dedicated broker can help you compile a successful application and liaise with the lender on your behalf. Their support will enable you to move forward with your property development or investment plans without delay.
To start an enquiry, please fill out our contact form and one of our selected brokers will be in touch.
The term for closed, standard bridging loans can vary from 1 month to 12 months. Open bridging loans do not have an end date, but come with higher interest rates and fees.
Loans typically start at £25,000 but there is no real upper limit and it is possible to borrow upwards of 7 figures if you fulfil the criteria.
The monthly interest rate for bridging loans is typically higher than conventional mortgages as the lender takes on more risk. Interest rates are typically between 0.4% and 1.5%.
Bridging loans can be used to purchase property, for redevelopment projects and to refinance. This includes both residential, commercial and semi commercial properties.
Yes, bridging loan providers will typically require a deposit of 25% to 40% of the loan value. The higher your deposit, the better chance there is of getting approved for a fast bridging loan.
The most common reasons for bridge loans being delayed include approaching the wrong providers for your circumstances and incomplete paperwork. Working with an experienced broker can help you avoid common pitfalls and speed up the application process.
The Financial Conduct Authority does not regulate bridging loans for investment property, buy-to-let investment, or commercial property.