How Long Does it Take to Get a Bridging Loan?

What’s the use of a bridging loan if your application takes long enough to approve? That’s why you may ask about the exact time required to get a bridging loan. 

While there isn’t a specific time to get your loan approved from a lender, you can still expect 24 hours, a few days, to a couple of months. 

Of course, every buyer wants money as soon as possible, but a few hurdles can prolong the whole process. Today we will explain the easiest and quickest route to get a bridging loan. 

Are Bridging Loans Fast?

Are you worried about the house purchase? Have you seen the best opportunity after a long time and want to get the deal before someone buys that property?

Lacking funds can give you headaches if you are a house owner or a property investor. You can’t turn your face away from a potential opportunity because of a lack of funds. 

The simple and fast way to arrange funds quickly is through bridging loans. Bridging loans are fast enough to provide you with the money you want, which you can repay later when new revenue streams arrive. 

The reason is that the bridging lenders provide a lump sum as soon as your application is approved. With the advent of new lending platforms such as P2P lending and private financial institutions, you can remove the red tape in loan borrowing. 

How Fast are Bridging Loans?

When we talk about fast bridging loans, it’s important to note that these loans should be compared to other financial products, such as mortgages, to understand the comparison. 

It goes without saying that bridge financing is the fastest of all. However, depending on your circumstances, you may want money instantly or within a couple of weeks. 

If that’s the case, your bridging finance may take only 24 hours. However, once in a blue moon, the loan completion process gets lightning speed. 

In general, you should give your lender at least five days to one week to verify, evaluate and proceed with the money. 

Moreover, if the application process isn’t taken with astute care, the lending can e delayed to weeks and often months. 

Why the Bridging Loans Get Delayed?

There are several reasons behind the loan delay. We have enlisted some of the prominent reasons below.

Loan Type:

Loan types affect how you get the loan and why you need it. Also, lenders have loan processing mechanisms. 

For instance, it’s generally accepted that residential or regulated loans take more time than unregulated ones. 

It explains that your loans can take more time if you want to buy a house to live in there. Also, these loans are regulated by FCA or Financial Conduct Authority.

They check the loans rigorously before even approving them. That’s why you can’t blame it on the lender that your loan gets delayed. 

On the other hand, commercial loans do not go through rigorous checks and are easy to obtain. Keeping in mind these things, you can estimate the time it will take to get a loan. 

Documents Problems:

The problems you may encounter in the documentation are vast. These may start with forged details that can even lead to the cancellation of the application. 

Apart from that, the other problems that can cause issues with your loan delay our exit plan. If you can’t create a strong exit strategy, you may end up wasting alot of time. 

The lenders take more time if they find anything confusing in your documents. To convince your lender and win their trust, you must explain everything as it is. 

Proposing a concrete repayment plan can help your loan approval in less time than you think. 

Communication Issues:

The relationship between a borrower and a lender is very delicate. When your lender finds any lack of information or communication, they may stop considering your application. 

Therefore, you must facilitate a proper dialogue with your lender to negotiate smoothly. Often, the negotiations can take time, so you can have a broker to help you with this. 

Brokers have a knack for winning the confidence of lenders, and they know their pain points. Therefore, you can employ a broker to settle the deal in no time. 

Final Words:

Bridging loans are the fastest type of specialized finance you need when purchasing a property or wanting instant money to fund your business. 

However, most people who intend to get bridging loans UK don’t know the time it takes to get the loan approved. 

It’s necessary to know that there isn’t a magic wand that can get you a huge sum of loan money in a blink of an eye. 

The whole lending process is marred with fits and starts. It is a skill to soften the hurdles and approve the loan in no time. 

We have covered all the necessary points to get a fast bridging loan. We also hope the information will help you take the right steps for quick bridging finance. 

Leave a Comment

Your email address will not be published. Required fields are marked *