How Long Does a Bridging Loan Take?

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Written by Daniel Tannenbaum on June 28, 2021

Updated September 2, 2021

A bridging loan can take between 2 to 4 weeks to complete and be funded, although some projects can take several weeks or months depending on various property checks and other delays.

Bridging loans are often used to complete on properties within a tight deadline, especially to afford competition from elsewhere or potentially losing the deal. One of the main benefits of bridging finance is the speed of funds over a traditional mortgage for your local bank. But to make sure you complete on your loan as soon as possible, there are a number of things you can to help.

 

To speed up your bridging loan application you should:

  • Have clear plans for your property, including costings and an extra strategy
  • Have documents such as property information and income ready and available
  • Check that your credit score is good and there are no anomalies
  • For auctions, get a quote before you go
  • Get the property valued since this will be valid for a few weeks
  • Make sure your solicitor is ready and available to help

 

How Soon Can a Bridging Loan Be Funded?

A bridging loan can be funded as quickly as 2 to 4 weeks, provided that it is a very straightforward process.

When applying, you will need to show proof of income (and your property if used as collateral) and demonstrate your knowledge of the property and outline detailed plans for any additional work or your exit strategy.

If you are experienced with using bridging finance or have worked with that specific lender before, you will have this information ready go and this should help your deal to get completed as quickly as possible. If you are new to working with a bridging lender, you will find that there are forms to complete and information to gather beforehand.

Every lender is different and may require different checks before processing your loan. It may also depend on the property because this will always be subject to a valuation and if there are any flags, this may require additional work or research which could delay the loan from being funded.

You will need to have a solicitor who is ready and available to help you every step of the way – since their involvement is crucial in completing the final checks and paperwork and they will be required to complete your bridging loan deal as quickly as possible.

The processing and underwriting of a bridging loan can take several weeks or months, but once it is actually approved, the funds can be transferred in a matter of days.

 

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What Checks Are Carried Out During The Application?

  • Internal checks by the lender incl. background checks
  • Credit checks
  • Proof of income
  • Survey
  • Valuation
  • Solicitor checks

 

Auction Finance Loans Must Be Completed Within 28 Days

If you are buying a property at an auction, you will have 28 days to come up with the funds, otherwise you risk losing the property and the 10% deposit which you are required to pay upfront.

With this in mind, it is always worth speaking to a bridging lender before you go to auction to get indicative terms and this will confirm how much you can borrow and should bid for.

Therefore, if you win the property at auction and get the right price, all your information should be ready with the lender and you should be able to proceed with your bridging loan as soon as possible.

For more information, how to use bridging finance to buy property at an auction.

 

What Can Delay a Bridging Loan From Being Completed?

There are various things that can delay a bridging loan from being funded, which is why giving yourself a few weeks or months could be more realistic. Issues that arise may include:

  • Something flagged at the survey (leaks, subsidence, asbestos)
  • Land registry issues (name on the registry)
  • Poor valuation – final valuation is over or under-estimated
  • Seller changed their mind
  • Survey is delayed – struggle to get an appointment
  • Solicitor is delayed – on annual leave, busy or waiting on additional information
  • Lender requires extra information from the applicant

 

If you need a quick bridging loan, Lending Expert works with a highly-effective team of bridging lenders and we can offer an indicative quote today >>

 

 

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