How Long Does It Take To Get A Bridge Loan in UK?

How long does it take to get a bridge loan? Many people from UK are on the internet trying to find out how long does it take to get a bridge loan or how long does it take to get a bridging loan? The terms of the bridge loan for approvals and financing vary depending on the type of lender and the type of property used to insure the bridge loan.

While some conventional lenders provide bridging loans, banks and credit unions generally prefer to fund long-term loans. Expect an approval and financing period of 30 to 45 days from a conventional lender.

A bridging loan from a hard money lender can be approved and financed very quickly, especially when compared to an average scheme from a conventional lender such as a bank or credit union. Conventional lenders often have a lengthy approval process that requires multiple application forms, multiple documents, and waiting times.

Hard money bridging loans can be financed earlier than other types of financing, but the process and schedule will vary depending on whether the property in question is an investment or owner-occupied property.

Hard Money Bridging Loan For Real Estate Investments

A real estate bridging loan from a lender can be approved and financed within days. The borrower must first complete the lender’s bridging loan application. Once the application is received by the lender, it can be approved within the same day.

The bridging loan approval process can be completed so quickly because lenders are primarily concerned with the value of the property and the borrower’s equity in their property. A rough appraisal of the property and a simple loan-to-value ratio are important considerations for the approval of a bridge loan.

As long as the property has sufficient equity capital based on the loan amount requested, there is a good chance that the bridging loan application will be approved and approved quickly.

Once the bridge loan lender has approved the bridge loan, financing can be completed within 3-5 days if required.

Hard Money Bridging Loan For The Purchase Of A House

A bridging loan for the purchase of a home (ownership/principal residence) from a lender can be quickly approved and financed, but the financing process will take longer due to current federal regulations for home use loans.

As soon as the hard money lender has received the application for the bridging loan, the loan application can be approved the same day. Own-use bridge loans are subject to regulations requiring multiple mandatory recession periods and other processes extending the minimum funding time to 2-2.5 weeks.

Financing in 2-2.5 weeks is usually fast enough for homeowners. Once they receive the proceeds of the loan, they are ready to buy their new home with a cash offer or a significant down payment.

How Long Does It Take To Get A Bridge Loan?

To go straight to the question of how long does it take to get a bridge loan? Some companies have 24-hour response times, but these are rare and often inaccurate claims. It is possible and relatively common to receive a decision within 24 hours, especially if a client has engaged the services of a broker or prime broker. But normally it takes about two weeks for the money to be released. Some less established and cheaper lenders may require stricter controls, resulting in a longer waiting time for the money transfer, possibly up to four weeks.

How Long Does It Take To Get A Bridge Loan – What Factors Can Slow Down The Process?

The lender you have chosen.

Every lender has an application process that a customer must complete. Some require stricter controls than others. The FCA (Financial Conduct Authority) does not supervise unregulated bridging loan providers. This means that these providers have less paperwork to go through, making the application process generally faster than for regulated bridging loans.

The refund rate a customer is happy to accept.

As with traditional loans, bridging loans are priced based on the level of risk to the lender. A company that offers quick returns and requires minimal controls runs a higher risk of the borrower not repaying the loan on time. So they are likely to charge higher interest and redemption fees. If your customer wants the best deal, they may have to wait longer for the money to be transferred.

If a search is needed.

Most lenders can decide on a loan within hours, but a final offer is only made after the relevant home has been researched. Some lenders waive the need for a search to speed up the process. While an inspection can delay the process, it is the best way to ensure that a fair price is paid for the property and that the loan is justified.

A client who acts without expert advice.

Master brokers and brokers spend years building effective working relationships with finance companies. They understand how the system works and which products benefit their customers the most. A customer who trades without an intermediary will likely need more time to find the best deal, choose a provider, and complete the application process.

Two lawyers are needed.

With a traditional mortgage, a lawyer completes all the legal documentation associated with a transaction. Bridging loans require the lender and borrower to hire separate attorneys. This can cause delays. Apex Bridging continuously strives to improve the service our customers have received. To this end, we form a panel of attorneys who will work with the borrower and ensure that communication is open and tasks are completed quickly.

Some of these delays can be avoided, for example by forgoing an inspection or simply requiring property insurance rather than waiting for a full legal search. But speeding up the process carries greater risk for the lender — and those costs will likely be passed on to the customer.

How Long Does It Take To Get A Bridge Loan – How Do You Keep The Process Moving Quickly For Your Customer?

Choose the right lender.

The lender determines your wishes and the application process. These can differ significantly between lenders. Choosing the right lender for your client is critical to ensuring that the process runs as smoothly and quickly as the borrower requires. Apex Bridging is a highly trusted and respected bridging finance provider. We offer loans up to 80% LTV (Loan-to-Value) and never require credit checks, which can significantly slow down the process.

Provide the correct information quickly.

Once a loan is approved, the lender will provide the necessary documentation to start and complete the application process. Please ensure that this request for information is communicated to your customer promptly and that they understand exactly what is expected of them. Providing the correct information promptly prevents delays.

Choose a lawyer carefully.

Your client should seek a lawyer with experience in arranging bridging financing. This procedure is very different from arranging a standard mortgage, so a lawyer unsure of the processes involved will slow things down. Have your client review the experience of a lawyer and your firm in this area and suggest asking for examples of successful cases. It is also worth checking the attorney’s workload. If your customer is one of many, their case may not be prioritized causing delays.

Conclusion – How Long Does It Take To Get A Bridge Loan?

How long does it take to get a bridge loan? It can take up to 5 days in most cases for bridging loan to be approved by the lender. This time frame is likely to be similar to other types of home loans, and in more complex scenarios, it may take longer to get approved. After approval, the term of a bridging loan will probably be approved for 6 months when buying a new home or 12 months when building a new home.