A bridging loan can be a good option for anyone who needs a loan quickly and easily. There are many reasons why you might need a bridging loan, but a bridging loan can be a good option for anyone who wants to complete on a property quickly.
One of the big advantage of a bridging loan is the speed with which you can receive the money. The time it can take to be approved for a traditional loan can vary depending on the type of loan you need and the provider you are going with.
A standard mortgage approval process is supposed to take “between 18 and 40 days”. However, there is no guarantee where you might fall on this widely-quoted timescale. If you look on finance forums you will find that “between 18 and 40 days” does not seem to cover peoples own experiences dealing with getting a mortgage. Applicants talk about the process taking 16 weeks or more.
How long will it take to get a bridging loan?
With a bridging loan receiving your money can be quick and easy. At Octagon Capital, the lenders we work with are able to send the entire funds to your bank account in one lump sum. This usually takes just 10 to 14 days after the loan has been approved. There is an average of 2 to 4 weeks from the start of your application to completing and receiving your funds, although this can happen much sooner.
How can you speed it up?
A large part of how long your loan will take to get to you depends on the lender and broker. However, there are ways that you can speed up the process and ensure you get your loan as quickly as possible.
You can speed up the process of receiving your bridging loan if you already have a loan in principle from your loan provider. Being approved in principle by your lender means that the lender will provide you with a statement saying that they will lend a certain amount to you before you have finalised the purchase of a property. When you have a loan in principle much of the admin has already happened and you will have been approved on the initial terms of your loan, this means the process can be much quicker when the time comes to secure your loan.
Make sure you have you have your information ready. Once you’ve been approved for a new bridging loan in principle, your lender will let you know exactly what they need to progress to a full offer. Have your information ready to go to speed up the process, a lender will usually ask for documents including the following:
- Confirmation of ID
- Confirmation of an exit strategy (how do you plan to pay the loan back)
- A property valuation etc.
Getting a property valuation can be a long process, so to make getting your bridging loan as quick as possible, make sure you have already got your property valuation. A property survey can take between 6 and 12 weeks, so if you wait to start until you have applied for a bridging loan this will definitely slow down your application.
Because there is no sure-fire way to get a bridging loan immediately, it’s always best to apply for your loan before going to auction or being ready to complete. This way you’ll be ready to complete or buy at auction with your bridging loan already secure as a posed to having to hold up your purchase because you’re still waiting for the funds to come through.
If you have any questions about getting a bridging loan get in contact with one of our advisors today and they can guide you towards the perfect bridging loan for you.
