One key advantage of a bridging loan is that it can be completed very quickly compared to a mortgage application. Most bridging loans take a week or two to compete, but it is possible to speed up the process.
In January 2018, BridgingAndCommercial.co.uk reported that a bridging loan for £233,532 was completed within 48 hours from the initial loan application.
This required a lot of teamwork. Bridging loans involve several people, including the broker, the lender, valuers and solicitors. If any of these people delay their work, it can mean that the process takes longer.
To complete the £233,532 loan quickly required a dedicated high-performance team and solicitors working together. They managed to complete the 60% loan-to-value loan in a lightning quick 48 hours.
In another case, reported by Bdaily.co.uk this month, a loan for £30,000 was made available to complete an eco-home building project. The purchase of the land and the building of a prefabricated house had been completed, but a source of funding had failed, leaving the builder with a £30,000 shortfall needed to complete the internal fixings and decoration. A bridging finance lender visited the site for a full valuation and agreed to provide a loan for £30,000. As the loan was privately funded, and no solicitors were involved, and the funds were available in less than seven days.
Bridging finance brokers can arrange bridging loans that normally take a week or two. If your property deal is time sensitive, talk to them about how to make the process much quicker.