How Fast Can I Receive a Bridging Loan?
It is possible to receive a bridging loan in 2 to 4 weeks of applying and in some cases, we have been able to complete transactions in just 3 days. MT Finance understands that speed is imperative to making your project a success and our team is available to answer any questions and fast-track your application so that it can be completed as quickly as possible.
For any bridging enquiries, you can speak to our customer service team on 0203 051 2331 or email us at enquiries@mt-finance.com
Bridging loans allow borrowers to move fast on a property opportunity that might be delayed by property chains or due to mortgage delays. In this guide, we explain what you information you need to complete faster on a bridging loan and how you can speed up the application process.
Why Might I Need a Bridging Loan To Complete Quickly?
Purchase property on a tight deadline – For developers looking to purchase a property where there is a lot of competition, a bridging loan can help you secure the funds you need quickly in order to complete. Where mortgage applications might be strict with their criteria and take time to approve and get the right terms, a bridging loan could help you access funds faster and with flexible rates.
Auction property purchase – For properties available through an auction, a buyer could get an impressive discount and carry out renovation work to maximise its value. Auction purchases require 10% of the property’s value on the day you win the bid and the remaining 90% in 28 days. Bridging finance (also known as auction finance) can offer up to 70% LTV to meet the outstanding amount and deadline.
Break a chain – For buyers caught in very long property chains, a bridging loan helps the individual or company to become a cash buyer and move quickly. Rather than wait several weeks or months for the other parties to get up to speed, the use of bridging can help complete the transaction immediately.
Carry out refurbishments – If the property you look after is in need of essential refurbishments or upgrades for its tenants, bridging finance can provide capital to make these changes immediately.
Access capital before long-term funding is available – Bridging loans offer a fast and effective short term solution, and this can be useful to access capital for purchases or refurbishments before longer term finance becomes available such as commercial or buy to let mortgages.
Bridging loans can be available in 1-4 weeks to help with fast property purchases or carry out refurbishment work.
What Information Do I Need To Provide For a Bridging Loan?
During the application process, we require customers to provide information about the property they are looking to purchase and to present detailed plans and costings so that there is a clear exit strategy.
We require:
- Property details including survey and valuation
- Valid UK identification
- Proof of address such as recent utility bill
- Financial records including previous bank statements
- Proposed plans including building work costs
- Clear business plan and exit strategy
- Details of your solicitor
How Can I Speed Up The Bridging Loan Application Process?
There are a number of ways to speed you your bridging loan and get access to funds as fast as possible. As a starting point, it is recommended to have all your building costs, forecasts and exit strategy ready when you apply. This will allow us to provide some indicative quotes immediately.
Similarly, if you are hoping to buy a property at an auction, it is worth getting indicative terms beforehand so that you know how much you can bid for and what you can afford.
If you require information from your architect, solicitor, surveyor, structural engineer or project manager, these things could delay your project and turnaround time, so having this information as early as possible is advised.
Working with good partners such as solicitors is key, because you will need to get searches and checks done and for the solicitor to sign things off – and they will play a keep role in your completion time.
For any bridging enquiries, you can speak to our award-winning customer service team on 0203 051 2331 or email us at enquiries@mt-finance.com