If a deal is time sensitive, a speedy bridging loan can provide the funds to secure the deal. In a recent case, an investor successfully bid at a property auction for an Edwardian villa that contained nine bedsits. He was required to complete the purchase of the property within 28 days after the auction sale. He managed to get an initial loan offer from a lender, but the lender let him down eight days before the 28-day deadline. He approached a bridging finance broker who within an hour had done a credit check and arranged an initial bridging loan offer. To have the funds available in time meant that the broker, the valuer and the lawyers had to work together to complete the loan process. The valuer worked over the weekend to visit the property and produce a valuation report. The loan was completed within seven days, 24 hours before the purchase completion deadline. Most bridging loan applications take longer than seven days to complete, which is usually fine if a deal is not time-sensitive. If you want a loan quicker, a good bridging loan broker will find a lender who they know can make an extra effort to speed up the process. The broker can then liaise with everyone involved in the application process to make sure that there are no hold-ups. If necessary, a good broker will be prepared to work outside normal office hours to make sure that a loan deal is completed quickly.
May 10, 2022
