Key Takeaways
- Typical timeframe: Bridging loans generally take 3–6 weeks to complete, with the average being around four weeks.
- Expedited options: In urgent cases, bridging loans can be arranged in as little as 72 hours, though this may incur extra costs.
- Broker advantage: Using a skilled broker with strong lender relationships can significantly speed up the process by managing communications and chasing parties involved.
Bridging loans are a popular choice for those needing quick access to funds, particularly in the property market. But how long does it actually take to get one? This guide breaks down the process, key factors affecting timelines, and how you can expedite the application with the help of a broker.
What Is a Bridging Loan?
A bridging loan is a short-term financial solution designed to “bridge” the gap between a financial need and a longer-term solution. Most commonly used in property transactions, these loans allow you to secure a property before your existing property sells or other funds become available.
For example:
- Buying before selling: If you’re purchasing a new home while waiting for your current one to sell, a bridging loan can provide the required funds.
- Auction purchases: Auction properties often require fast completion, making bridging finance ideal.
How Long Does It Take to Get a Bridging Loan?
On average, bridging loans take 3–6 weeks to complete. However, the exact timeline depends on several factors:
1. Complexity of the Application
- Straightforward cases: Loans secured against a single property and with a clear exit strategy are often quicker to process.
- Complex cases: Applications involving multiple properties, higher loan-to-value ratios, or less conventional exit strategies may take longer.
2. Speed of Valuations
Lenders require a property valuation to determine the loan-to-value ratio. This step can cause delays if:
- A physical survey is needed (usually takes longer).
- The lender offers a desktop or automated valuation (quicker option).
3. Lender Turnaround Times
Some lenders are faster than others. Specialist bridging lenders typically have more streamlined processes compared to traditional institutions.
4. Documentation Readiness
Providing all required documents promptly, such as proof of identity, ownership details, and financial information, can speed up the process.
5. Use of a Broker
A broker with established lender relationships can chase parties and streamline communications, reducing delays.
Can a Bridging Loan Be Arranged in 72 Hours?
Yes, but only under specific circumstances. Expedited bridging loans are possible when:
- The property valuation can be completed quickly.
- All documentation is provided upfront.
- You’re working with a responsive broker and lender.
However, fast-track bridging loans often come with higher costs, such as priority fees or higher interest rates. Additionally, not all cases are suitable for expedited processing.
Steps to Speed Up Your Bridging Loan Application
1. Work With a Broker
Brokers play a crucial role in expediting bridging loans by:
- Pre-checking your eligibility to avoid wasted time.
- Coordinating valuations, solicitors, and lenders on your behalf.
2. Be Organised
Ensure all required documents are readily available. These may include:
- Proof of ID (passport or driver’s licence).
- Proof of income or assets.
- Details of the property you’re using as security.
3. Choose the Right Lender
Specialist lenders often process applications faster than traditional banks. A broker can recommend lenders with a proven track record for quick completions.
4. Opt for Desktop Valuations
Where possible, request a desktop valuation to avoid delays associated with physical surveys. Usually these are only available for properties under £1m.
What Does the Bridging Loan Process Look Like?
1. Initial Enquiry (1–2 Days)
You or your broker make an initial enquiry with a lender. At this stage, a lender may offer a decision in principle based on the information provided.
2. Valuation and Underwriting (5–10 Days)
The lender arranges a property valuation and conducts due diligence, including verifying the security and your exit strategy.
3. Legal Work (5–15 Days)
Solicitors handle the legal aspects of the loan, such as property searches and ensuring clear title. Joint representation (using the same solicitor for you and the lender) can speed this step up.
4. Funds Released (1–2 Days)
Once approved, funds are transferred to your solicitor and made available for your property purchase or other needs.
Costs Associated With Speeding Up the Process
While it’s possible to expedite a bridging loan, this may come at an additional cost. Common charges include:
- Priority processing fees: Some lenders charge extra for fast-tracked applications.
- Higher interest rates: Expedited loans may come with less favourable terms.
- Legal costs: Faster processing may require paying a premium for solicitor services.
Why Use a Broker for Bridging Loans?
1. Expert Guidance
Bridging finance brokers understand the market and can guide you through the application process, ensuring no steps are missed.
2. Faster Turnaround
Brokers manage all communications, keeping the process on track. Their relationships with lenders can also expedite approvals.
3. Cost Efficiency
Many brokers, including Bridging Finance, operate on a fee-free basis, saving you money.
If you’re considering a bridging loan, Bridging Finance is here to help. With expert advice and access to the best lenders in the market, we can support you every step of the way.
FAQs
How quickly can I get a bridging loan?
In urgent cases, bridging loans can be arranged in 72 hours, but the average completion time is 3–6 weeks.
Do I need a broker to get a bridging loan?
While not mandatory, a broker can significantly speed up the process and increase your chances of approval.
What affects the timeline for a bridging loan?
Key factors include valuation speed, lender efficiency, and the complexity of your application.
Are there extra costs for expedited loans?
Yes, you may incur additional fees for fast-tracked processing or higher interest rates for urgent loans.