5 Tips to Speed Up a Bridging Loan Application

Bridging Loan Application

For many (if not most) applicants, the most appealing aspect of bridging finance is the speed with which the facility can be arranged. Get it right with a solid application complete with all essential paperwork and the money you need could be yours within a few working days.

But as is the case with all other conventional loan applications, delays and disruptions cannot be ruled out. More often than not, issues encountered while applying for bridging finance stem from simple mistakes with application submissions. Some of these could prompt requests for additional evidence and information, while others could see your application rejected entirely.

This is where it is important to take a strategic approach to bridging finance applications. Even when time is a pressing factor, rushing into the whole thing is inadvisable.

Even so, there are practical and fairly straightforward ways to significantly speed up the bridging finance application process. If you are looking to get your hands on the money you need as quickly as possible without delays or disruptions, here are five essential tips from bridging loan issuers:

  1. Learn how bridging finance works. Before submitting an application for a bridging loan, you need to ensure you fully understand how bridging finance works. This means familiarising yourself with the basic features and functions of bridging finance, along with the extent to which you are a viable candidate for a bridging loan. Bridging finance can be a highly flexible and affordable short-term facility, but (like all loans) is not suitable for everyone. Under no circumstances should you submit your application, before first considering the potential pros and cons of bridging finance in full.
  2. Scrutinise your application for errors and omissions. It is not uncommon for bridging finance applications to be rejected on the basis of very minor technicalities. It could simply be that one or more fields on your application have not been properly filled, or that a very minor detail has been left out. In such instances, your lender may get back to you with a request for further information, or simply reject your application outright. If there is anything about the application process you do not understand, it is better to seek clarification from your lender before applying.
  3. Have as much information available as possible. This means all the facts and figures your lender will need to know, in order to authorise your bridging loan. Examples of these include the exact amount of money you need to borrow, when you intend to repay the loan, how you will raise the funds needed to pay back the money (aka your exit strategy) and so on. You will need to demonstrate that you are in a comfortable position to repay your loan promptly and that you have conducted all essential due diligence regarding potential risks and contingency plans. The more convincing your application, the higher the likelihood of a positive (and prompt) outcome.
  4. Ensure your assets or in order. Bridging loans are secured against assets of value, which in most instances means the home (or business property) of the applicant. By arranging a formal valuation of your assets in advance, you will be in a much better position to apply for a competitive bridging loan. In addition, offering assets of a significantly higher value than that of the loan will make you a much safer prospect in the eyes of your lender. The lower the LTV of the loan you apply for, the more likely you are to qualify, with no major delays or disruptions.
  5. Consult with a broker. Last but not least, enlisting broker support at the earliest possible stage can pave the way for a smooth and speedy transaction. Your broker will ensure every aspect of your application is in order, and will negotiate on your behalf to ensure you get a good deal.  More often than not, applying via a broker is the single fastest and easiest way to get bridging finance, and to qualify for the best possible rates.

For more information on any of the above or to discuss fast access bridging finance in more detail, call anytime for an obligation-free consultation.

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The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.