How Long Does It Take To Get A Bridging Loan?

Many urgent home buyers or property investors turn to bridging loans when they need financing in a hurry. So it’s understandable that one of the most common questions asked is “How long does it take to get a bridging loan?”

This comprehensive guide will provide an in-depth look at typical bridging loan timelines. You’ll learn:

• The average timeline for bridging loan approvals
• Factors that can delay the process
• Tips for speeding up your bridging loan application
• How to choose the right lender and solicitor
• Steps you can take to get funding as quickly as possible

Whether you need a bridging loan completed in 5 days or 3 weeks, this guide will prepare you to get the rapid financing you need.

Key Takeaways

The timeline for obtaining bridging finance can vary depending on the lender and the circumstances. In general, bridging loans can be obtained within 72 hours, but in some cases, it may take up to 2 weeks.

Factors that can Delay Bridging Loan Approval

Bridging loans are typically known for their quick approval processes, but there are a few factors that can delay the process.

• Incomplete or incorrect documentation: Any errors or omissions in the application documentation can cause delays as the lender will need to request additional information or clarification. It is important to carefully review all documentation and ensure that it is complete and accurate before submitting it.
• Property valuation complications: Disagreements between the applicant and the valuer regarding the property’s worth, or delays in scheduling a property valuation can also delay the approval process. It is important to choose a reputable valuer who is familiar with the local market and can provide a fair and accurate valuation.
• Legal complexities: Any legal issues related to the property, such as title disputes or contract complications, can also delay the approval process. It is important to work with a lawyer who is experienced in bridging loans to help you navigate any legal challenges.
• Lender’s internal processes: The lender’s internal decision-making process and workload can also affect the speed of approval. It is important to choose a lender that has a reputation for quick turnaround times.
• Credit and financial assessments: The lender will need to conduct a credit check and assess the applicant’s financial situation before approving a bridging loan. This process can take some time, especially if the applicant has a complex financial history.
• Market conditions: Economic factors, such as a downturn in the housing market, can also affect the lender’s risk assessment and delay the approval process.
• Communication breakdown: Delays in communication between the applicant, lender, solicitor, and valuer can also stall the approval process. It is important to keep all parties informed of the progress of the application and to promptly respond to any requests for information.

How fast can I get bridging finance?

Here’s a table summarising the contributory factors to bridging loan completion speed:

Providing Documents Quickly for Your Bridging Loan

When applying for a bridging loan, time is often of the essence. The ability to provide the necessary documents quickly can significantly expedite the process, ensuring that funds are made available in a timely manner. Here’s a guide to what this entails:

1. Understand Required Documentation

Understanding exactly what documentation is required upfront can prevent unnecessary delays later in the process. Typically, this may include:

• Identification documents (passport, driving license, etc.)
• Evidence of income
• Details of the property involved
• Existing loan agreements
• Business-related documents (if applicable)

2. Prepare in Advance

Where possible, gather and prepare these documents in advance of the application. Even before you identify the exact lender, many of these documents will be standard across most applications.

3. Use Digital Formats

If the lender accepts digital submissions, scanning and preparing digital copies of the documents can accelerate the process. Ensure that the scans are clear and that all relevant details are legible.

4. Communicate with Your Lender

Maintain open lines of communication with your lender. Prompt responses to requests for additional information or clarification will keep the process moving.

5. Engage Professionals if Needed

In complex cases, engaging a financial advisor or solicitor with experience in bridging loans can streamline the document preparation process. They can ensure that all documents are in order and submitted correctly.

6. Consider a Checklist

Some lenders provide a checklist of required documents. Following this closely ensures that you meet all the lender’s requirements. If a checklist is not provided, consider creating your own based on the lender’s requirements.

7. Be Aware of Common Pitfalls

Understanding common areas where delays might occur (e.g., inaccuracies, missing information) and proactively addressing them can prevent unnecessary holdups.

8. Verify Before Submission

Before submitting, verify that all documents are complete and accurate. Ensuring everything is in order before submission can prevent back-and-forth communication that may delay the process.

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Getting Faster Bridging Loan Valuations

Bridging loan valuations are a crucial step in the lending process, as they help to determine the value of the property that serves as collateral for the loan. This step can sometimes be a bottleneck in the process, so it’s important to understand how to expedite it. Here’s how you can achieve faster bridging loan valuations:

1. Choose an Experienced Valuer

• Selecting a valuer who has specific experience in the type of property you are dealing with can save time. Their familiarity with similar properties can streamline the assessment.

2. Provide Complete Property Information

• Offering detailed property information upfront can prevent the valuer from having to seek out additional details. Include information about the property’s size, condition, location, and any recent renovations or unique features.

3. Schedule the Valuation Promptly

• Once you know a valuation is needed, schedule it as soon as possible. The sooner it’s on the calendar, the sooner it can be completed.

4. Prepare for the Valuation Visit

• Ensure that the property is accessible and that all necessary areas can be easily examined. Clearing any obstructions and providing keys or access codes can make the visit more efficient.

5. Use a Lender-Approved Valuer

• If the lender has a list of approved valuers, using one from this list can save time, as the lender already trusts their work.

6. Consider a Desktop Valuation

• In some cases, a full physical valuation may not be necessary, and a desktop valuation, which relies on existing data and online resources, may suffice. Consult with your lender to see if this quicker option is acceptable.

7. Maintain Open Communication with the Valuer

• Keep lines of communication open with the valuer, so if any questions or issues arise, they can be addressed quickly.

8. Coordinate with Other Parties

• Coordination with your lender, solicitor, or other involved parties can prevent delays in transmitting the valuation report once it’s complete.

9. Understand the Lender’s Requirements

• Knowing exactly what the lender requires in terms of the valuation can help you provide it correctly the first time, preventing the need for follow-ups or corrections.