Bridging loans are a popular financing solution for a variety of reasons, including their flexibility, short-term nature and broader acceptance rates. But one of the main reasons bridging loans are so popular is speed of funds.
Compared with typical loan types, bridging loans can be obtained much faster, making them a popular option for property buyers, clients who need to capital raise, clients experiencing divorce delays, clients requiring funds to settle probate requirements, freeing them to proceed with sales or drawing down their inheritance.
But what is the bridging loan approval time, and how exactly can you get quick bridging finance approval?
At Bridging Finance Solutions, we’ve been able to provide quick finance to support a range of products, and in this blog, we will outline exactly how quickly you can get funded.
Keep reading to find out more.
Bridging Loan Approval Times: How Long Does a Bridging Loan Take?
Your bridging loan approval time depends on several factors, including how quickly the lender processes the loan. Let’s look at it from a worst-case scenario. If you’re unable to provide all of the necessary paperwork and identification documents straight away; you’re looking at between two and four weeks from your application to the release of funds.
At Bridging Finance Solutions, we have released a 48-hour bridging loan in the past, so how quickly you get your funds depends on the lender you choose, and how well prepared you are.
What is the Typical Timeline for a Bridging Loan?
We can’t speak for other lenders, but a standard loan typically takes 5-10 days to arrange. The timeline of our process looks like:
Initial Enquiry and Terms: 1-2 Days
At this stage, you submit property details, the loan amount you need and your exit strategy. With all of this information, you can then secure an agreement in principle.
Formal Application and Conveyancing: 2-5 Days
Once you receive an agreement in principle, you must submit all relevant documentation. If you’re not sure what this documentation should include, check out our bridging loans guide to find out more about what you should submit. We will then look at your case and arrange a property valuation.
Legal Work and Conveyancing: 3-10 Days
The solicitors we instruct will then handle searches, review title deeds, and satisfy legal conditions. This stage often takes the longest, which is why we work closely with trusted solicitors we know will complete their work quickly.
Formal Offer and Completion: 1-2 Days
If everything is legally sound, we will then issue a final legal offer. If accepted, you’ll sign the documents, and we’ll release the funds to your account, but you can speed this up by providing the right documentation for quick bridging finance approval.
What Affects How Quickly You Get Funded?
Worried that your application may be delayed or you might not get the finance you need in time? Here are some factors that can affect how quickly you get funded.
Property Type and Valuation Complexity
If you need finance for a straightforward residential property, this will take far less time to process than a more complex property. For example, if you are looking for a loan for a property that needs heavy renovation, which requires detailed contractor costings and specialised building surveys, this will delay the process.
If the property you need a loan for has readily available market data, this speeds up underwriting; but if you need a loan for an unusual or high-value asset, lenders must commission valuations, which require deeper analysis and slow approval.
Legal Due Diligence and Title Checks
Legal due diligence and property searches are what tend to lengthen approval time. Unregistered land, missing easements or restrictive covenants require extra review and can slow down approvals.
Usually, appointing a property solicitor with proven experience in fast bridging finance transactions can speed up the process and help you fix title defects early.
Exit Strategy Clarity
Your exit strategy is arguably one of the most important aspects of your loan application, and having a clear exit strategy in place can speed up a bridging loan by removing underwriting doubt. Having a vague exit strategy can slow down the process or lead to complete rejection from the lender.
How Prepared Your Documentation Is
As we’ve already touched on, how prepared your documentation is can also affect the speed of your funding. With underwriters used to assess the risk of the venture, if they are given incomplete documentation, this can completely halt the process and missing identification will trigger follow-up questions that naturally delay approval.
Get Funded Fast with Bridging Finance Solutions
With this guide in mind, you should now have all of the information you need to get fast finance from a bridging loan provider.
At Bridging Finance Solutions, we pride ourselves on providing fast finance for our clients, and if you have a project that needs quick finance, you’re in the right place.
Get in touch to find out how we can make it happen for you today.
