Quick Bridging Loans – The Secret of Fast Bridging Loan Funding

There are circumstances in which a quick bridging loans lending decision is of utmost importance for borrowers.   This is where fast bridging finance really proves its worth.

Perhaps you are looking to pay for a property auction purchase?  Or need to fund the acquisition of a rental property that needs renovation before you can obtain a mortgage on it? In these and other cases, you need a fast bridging loan funding solution.    The answer is quick bridging loans.

Fast funding released in a matter of days

In such circumstances, if the application is relatively straightforward.   A bridging lender can often complete and release funds in a matter of days.  Such time scales are unimaginable for other types of property finance.

Quick bridging loans can also be used when homebuyers find out that their chain has fallen down.  By using a regulated bridging loan, they can for all intents and purposes turn into a cash buyer.  They can become detached from the broken chain and continue with the process.

Access to quick bridging loans is best served by using a specialist finance broker who is experienced in dealing with bridging finance companies. The application process is different to applying for a regular, residential mortgage.

If you want a fast bridging decision then you need to work with your broker and get all of the required paperwork together as soon as possible.   If a bridging loan provider has asked for a specific piece of information.  Until they receive it they won’t be able to progress with assessing the application and underwriting it.   The broker will be ideally placed to talk to the underwriters and gauge the progress of the application.

The Exit

A key consideration with any bridging loan application is what’s known as ‘the exit’.  Put simply, the bridging loan company needs to understand from the outset how the borrower intends to pay the money back (and exit the bridging loan). An exit could be achieved by the sale of a property or moving to a buy-to-let mortgage following a renovation, for example.

A number of bridging finance companies offer loans that the borrower can exit into, such as commercial loans or buy-to-let mortgages.  There are also ‘bridge to term’ loans, where the bridging loan comes to an end and the same lender provides a term loan for five to 10 years. Working with such a lender can often help a potential borrower looking for a quick bridging loan solution.   A bridging finance company will know from the outset whether they would lend for the exit as well.

The most important factor when working to a tight timescale is communication.   The borrower needs to be talking to the broker, who also needs to be constant dialogue with the team at the bridging finance company. That’s why you should work with an experienced broker who has relationships with bridging finance providers.   They know that not all lenders are the same.

At Alternative Bridging Corporation, for example, we have over 30 years’ experience in providing quick bridging loans.   Our underwriters work all day, every day, reviewing and assessing applications. That’s why we can work so efficiently and provide finance so rapidly.