Bridging finance is one of the fastest and most flexible forms of loan - but if you are on a tight deadline, is it quick enough?
The Revolution team regularly receives enquiries for bridging loans in a very short timescale, so here we've summarised all the essential information about how to secure a deal fast.
If you need expedited lending, give us a ring on 0330 304 3040 or send us an email to firstname.lastname@example.org.
How Quickly Can a Bridging Loan Be Agreed?
Straightforward applications can be completed very quickly, with conditional offers in place in just a few days.
If your application is more complex, it might take a couple of weeks - but significantly less time than a mortgage.
Can I Speed up the Bridging Loan Application Process?
You can! There are lots of ways to expedite your path to securing a bridging loan:
- Speak to an independent broker about which lenders offer the fastest turnaround times.
- Ensure you apply directly to a lender who your broker knows has eligibility criteria you can meet.
Revolution has negotiated deals for financing in 24 hours, with many taking around 48 hours, so by streamlining the application, applying to the right lender, and using the experience of a whole-of-market broker you can get the cash quickly.
What is Involved with Applying for Bridging Finance?
Lenders are primarily interested in the exit strategy - how you will repay the original loan balance at the end of the term.
If you have a solid exit plan, your application will likely be fast and straightforward.
- First off, get in contact with Revolution Brokers. We will have a chat to get an idea about what you need, when, and the circumstances.
- We will take a look at the exit strategy, and recommend anything else you need to do. For example, if you plan to sell the property or remortgage, you might need to get an agreement in principle or a valuation in place.
- Our team recommends the best lenders on the market, and decides with you who to approach for an agreement in principle. In some cases, we go straight for a full application if everything is ready to go.
- You receive a conditional offer from the lender and decide whether to proceed.
- If you're happy, once the conditions are met - such as a valuation - the process goes over to the solicitors to organise the paperwork, and the funds are released.
What Factors Impact the Speed of my Bridging Finance?
There are lots of factors involved, and most of the time is taken up with the lender assessing your application - they will consider:
- How viable your exit plan is.
- Whether you need regulated or unregulated lending.
- What your credit history looks like.
- The type of property in question.
- How much deposit you have available.
- Whether you have prior property development experience.
- If there is a valuation already in place.
The exit strategy is critical, so the more stable it is, the better your chances of approval.
Which Bridging Loans are Regulated and Unregulated?
Regulated bridge loans are for residential properties - so if you are borrowing against a home you live in, or will be living in. The Financial Conduct Authority carries out the regulation.
Unregulated bridging loans are just as valid and reputable, but you can use the loan for commercial purposes.
Can I Get a Fast Bridge Loan with Bad Credit?
You can - the exit strategy is more important than your credit rating, so you can usually find a bridging loan regardless of any credit issues.
If you have severe problems on your credit file, it might be best to apply to a specialist bad credit lender with experience lending where there are credit problems.
What Property Types are Available for Fast Bridging Finance?
Bridging loans can be used for almost anything, even properties that are ineligible for a standard mortgage. Lenders will have their own policies about what property types they will lend against, but there are few restrictions.
Some bridge finance providers will not lend against specific types of commercial premise or unusual properties.
How Much Can I Borrow on a quick Bridge Loan Application?
Most bridging finance goes up to 70% or 75% of the investment value. If the proposal is higher risk, you will be able to borrow up to 50% or 60% of the total cost.
The higher your deposit, the lower the lender's risk, so if you're looking for fast completion, the more you can offer the better.
Are There Fast Bridging Loans for Buy to Lets?
Yes, possibly. You can use bridging loans for investments, and these are called bridge to let loans.
The same criteria apply, so the lender will need to see a property valuation.
Can I Get a Bridge Loan for a Commercial Business?
Indeed you can! Again, the exit strategy is all-important, so you can apply for a commercial bridging loan as a limited company provided you can demonstrate how you will make the repayment.
Many lenders will ask for a personal guarantee from the company directors.
Professional Advice with Fast Track Bridging Loans
If you need financing fast, contact Revolution Brokers on 0330 304 3040, or email us at email@example.com.
As an independent, whole-of-market broker, we leverage a vast network of specialist providers. We will work with you to get a competitive deal on the table in the fastest time scale possible.