Key Takeaways
- Speed: Funds can be available in as little as 72 hours.
- Flexibility: Tailored to your specific needs, including auction purchases and unmortgageable properties.
- Support: Bridging Finance offers expert, fee-free advice to help you secure the best deal.
Navigating the property market can be complex, especially when time is of the essence.
Fast bridging loans are the ultimate solution for buyers and investors who need quick access to capital.
Whether you’re breaking a property chain, purchasing at auction, or securing an unmortgageable property, these short-term loans provide the flexibility and speed you need to act decisively.
At Bridging Finance, we specialise in streamlining this process, ensuring you achieve your goals with minimal hassle.
Use our bridging finance calculator to get a fast estimate of what your costs and terms could look like:
What Are Fast Bridging Loans?
Fast bridging loans are short-term financial solutions designed to bridge the gap between a purchase and the availability of long-term funding or asset sales. These loans are perfect for situations requiring immediate action, such as buying a property before selling your current one or meeting auction deadlines.
Key features include:
- Loan Term: Typically up to 12 months.
- Repayment Flexibility: Repay upon securing funds from property sales or other financing.
- Interest Structure: Pay only for the period you use, often with no early repayment penalties.
By working with an experienced broker like Bridging Finance, you can expedite the process while minimising risks.
How Fast Bridging Loans Work
Step-by-Step Process
- Initial Consultation: Discuss your requirements with our team to determine your eligibility and ideal loan structure.
- Eligibility Assessment: Use our bridging loan calculator to estimate costs and loan-to-value (LTV) ratios.
- Decision in Principle: Secure this within 24-48 hours to strengthen your purchasing position.
- Property Valuation: Arrange a valuation to confirm the security for your loan.
- Final Application and Approval: Submit your application with our expert assistance.
- Funds Release: Once approved, funds can be transferred in as little as 72 hours.
Throughout the process, Bridging Finance handles all paperwork and liaises with lenders, valuers, and solicitors to ensure a seamless experience.
Why Choose Bridging Finance for Fast Bridging Loans?
Unmatched Speed
Fast bridging loans are designed to expedite property purchases or address urgent financial needs. At Bridging Finance, we work with lenders who specialise in quick approvals, including:
- Streamlined Underwriting: Accelerated decision-making processes.
- Desk-Based Valuations: Where applicable, saving time on property assessments.
Competitive Rates
We offer access to competitive interest rates and flexible terms tailored to your needs. Higher fees can sometimes expedite applications, and our experts will guide you through these options to strike the best balance between speed and cost.
Expert Advice
Our fee-free advisory service ensures you:
- Understand your options.
- Avoid unnecessary costs.
- Secure the most suitable loan for your unique situation.
When to Use Fast Bridging Loans
Fast bridging loans are invaluable in the following scenarios:
Breaking Property Chains
Need to buy a new home before selling your current one? Bridging loans allow you to act quickly, ensuring you don’t lose your dream property.
Auction Purchases
Auction rules often require completion within 28 days. With a fast bridging loan, you can meet these deadlines without stress.
Unmortgageable Properties
Purchasing a property deemed unmortgageable by traditional lenders? Bridging loans provide the funds needed to buy outright, giving you time to renovate and refinance.
Property Investment
For investors looking to renovate and sell or refinance (e.g., bridge-to-let or flip), bridging finance offers an ideal solution.
Emergency Funding
From covering care fees to avoiding repossession, fast bridging loans offer financial breathing space in urgent situations.
Costs and Fees
Understanding the costs of fast bridging loans is crucial for making informed decisions.
Interest Rates
- Typically 0.68% to 1% per month.
- Rolled-up interest payments are common, freeing up cash flow.
Facility Fees
- Usually 1.5% to 2% of the loan amount.
Additional Costs
- Valuation Fees: Approx. £950 but may be waived for desk-based valuations.
- Legal Fees: £1,000 on average but can vary by lender and property value.
- Exit Fees: Rare in our recommended products.
- Redemption Fees: Small administrative charge (£100-£150).
At Bridging Finance, we work to minimise these costs by negotiating terms and seeking efficient solutions like joint legal representation.
Eligibility and Loan-to-Value (LTV) Considerations
Eligibility hinges primarily on your loan-to-value ratio. Here’s how it works:
- Loan Amount: How much you need to borrow.
- Property Value: The value of the property or properties used as security.
Most lenders offer loans up to 80% LTV. Your income or credit score is less critical since repayment depends on your exit strategy, such as selling a property or securing a mortgage.
Why Bridging Finance?
Choosing Bridging Finance ensures you receive:
- Speed: Our strong relationships with lenders allow us to secure decisions quickly.
- Transparency: We clearly outline all costs and risks.
- Support: Our experts handle all aspects of your application.
FAQs About Fast Bridging Loans
How Quickly Can I Get a Bridging Loan?
Funds can be released in as little as 72 hours, depending on the complexity of your application.
Do I Need a Salary for a Bridging Loan?
No. Bridging loans are based on your exit strategy rather than regular income.
Are There Early Repayment Penalties?
Most of our recommended lenders do not charge early repayment fees, giving you flexibility to repay sooner.
What Happens If I Can’t Repay?
Your lender may repossess the secured property. This highlights the importance of having a clear exit strategy.