How long does it take to get a bridging loan?

If you are looking for a bridging loan, then one of your concerns or questions will likely be about how long it takes to get a bridge loan.

Generally, from start to finish, the whole process can take a couple of weeks. However, it depends on the organisation of the broker, lender, and borrower.

The most convenient approach to attaining a bridging loan without delays is to fill out our application form and wait for a member of our team to call you back, which we are passionate about doing the same day. 

However, if you are looking to accelerate the process, you can follow these three steps:

  • Plan ahead: You should organise what you need for the application, put together your repayment plan, and prepare copies of documents such as …. (Awaiting info from client). We recommend scanning and emailing these rather than posting them, as this again cuts the time down by several days. It also saves on the costs of first class postage and tracking. You can complete this step over the weekend when most brokers will be closed.
  • Get in touch: You can email us all the information you have gathered and then call us up as soon as it has been sent to speak with one of our unbiased financial advisors. The financial advisor will ask a few questions to validate the information you have provided and offer the right product and solution. If you do this on Monday, you will improve your chances of approval in the same week.
  • Exercise patience: We appreciate that you are excited and impatient about getting your finance in place. However, you can sit back and relax for a while why we get everything in place and arrange the transfer of funds. With COVID affecting lenders and solicitors and with heightened demand for bridging loans, the process currently takes 2-3 weeks, from start to completion.

Preparing your repayment plan

Also known as your exit strategy, the repayment plan should state how you intend to repay the loan at the end of the agreed term. Your exit strategy might include:

  • Selling a property, you own.
  • Receiving an inheritance.
  • Refinancing the bridge loan with a regular mortgage.

If your repayment plan is to sell a property, the lender will want to arrange a valuation to ensure there is enough equity (money left over after repayment of any outstanding mortgage) to repay the bridging loan. If a remortgage is the intended exit strategy, then a decision in principle will be required as evidence that you can obtain the remortgaging finance.

Preparing to speak with our financial advisors

If the financial advisor determines that a bridging loan is the right solution, they will contact you to take brief details of the property involved, how much you intend to borrow, and what your exit strategy is. We will then approach the best lender to get a decision in principle on your behalf.

What about bad credit bridging loans?

Friends Capital helps clients find homeowner loans with bad credit. Homeowner loans with poor credit are not impossible to get approved because a bridging loan is offered based on the equity in the property or asset.

What about the stamp duty holiday deadline?

The stamp duty holiday is ending on the 31st March 2021. The government has confirmed that there will not be a stamp duty extension. There should still be time to arrange a bridging loan before the deadline, but you should not delay getting the process started.

If you follow our tips for accelerating the bridging loan process, you will acquire your funds in the quickest time frame. Please contact Friends Capital to further assistance.

Bridging Loan Application Form