Need Funding ASAP? Discover the Secrets to the Fastest Bridging Loans!
Time is money, especially in the world of property development and investment. Whether you’re securing an auction property, bridging a financial gap, or funding urgent refurbishments, delays in financing can cost you opportunities—and profits.
That’s where fast bridging loans come in. These quick-turnaround loans are specifically designed to provide property investors and developers with the funds they need when they need them.
In this guide, we’ll explore the key factors that make bridging loans fast and how you can speed up the process even further.
What Makes a Bridging Loan Fast?
Bridging loans can be completed in as little as 5 to 14 days if you take the right steps and work with the right lender. Let’s break down how specific factors contribute to rapid bridging loan completions.
1. Have the Right Information Ready
Preparation is half the battle when applying for a bridging loan. Lenders can only work as fast as you let them, so having the necessary documentation and information ready upfront can significantly speed up the process.
What You’ll Need:
- Proof of ID and Address: Ensure your personal identification documents, such as a passport or driving license, are valid and ready to go.
- Details of the Property: This includes the address, purchase price, and auction terms (if applicable).
- Exit Strategy: Lenders want to know how you’ll repay the loan, whether it’s through refinancing, selling the property, or other means.
- Business Plan: If the loan involves refurbishment or conversion, outline your project’s costs, timeline, and projected returns.
Pro Tip: Respond promptly to any lender requests for additional documentation. Even a day’s delay can slow down the process.
2. Work with a Privately Funded Lender
The type of lender you choose has a massive impact on how quickly your loan can be approved.
Why Privately Funded Lenders Are Faster:
- Fewer Layers of Approval: Unlike traditional banks, privately funded lenders often make decisions in-house without relying on external committees or slow bureaucratic processes.
- Flexibility: Private lenders can assess each case individually, tailoring solutions to your needs without being bound by rigid rules.
- Speed: Many privately funded lenders specialize in fast completions, making them your go-to option for time-sensitive projects.
By choosing the right lender, you can cut down weeks of processing time and secure your funds when you need them most.
3. Automated Valuation Models (AVMs)
Property valuation is often a bottleneck in loan approvals. Traditional valuations involve scheduling site visits, inspections, and reports, which can take days or even weeks.
How AVMs Work:
An Automated Valuation Model (AVM) uses technology and market data to assess a property’s value without requiring a physical inspection. These digital valuations can be completed in minutes, allowing lenders to move forward with your application much faster.
Benefits of AVMs:
- Speed: Instant valuations save time compared to in-person surveys.
- Cost-Effective: AVMs are usually less expensive than traditional valuations.
- Accuracy: AVMs use up-to-date market data, ensuring reliable results.
Pro Tip: While AVMs are suitable for straightforward properties, complex cases may still require traditional valuations. Check with your lender to confirm.
4. Opt for Dual Legal Representation
Legal processes can often slow down bridging loan completions. One effective way to speed things up is by using dual legal representation, where both you and the lender share the same solicitor.
Why Dual Representation Works:
- Fewer Parties Involved: Using one solicitor eliminates the back-and-forth between separate legal teams.
- Streamlined Communication: A shared solicitor can handle both sides of the transaction, ensuring a smoother and faster process.
- Cost Savings: Dual representation often reduces legal fees, benefiting both parties.
Not all lenders offer this option, so check beforehand if dual legal representation is available.
5. Choose a Non-Regulated Investment Residential Loan
If you’re purchasing a property for investment purposes, such as buy-to-let or development, opting for a non-regulated bridging loan can speed things up.
What Are Non-Regulated Loans?
Non-regulated loans are not governed by strict consumer protection regulations, as they’re intended for business or investment purposes rather than personal use.
Advantages of Non-Regulated Loans:
- Simpler Processes: Without the need for extensive checks and disclosures required for regulated loans, the process moves faster.
- Flexibility: Lenders can tailor non-regulated loans to suit your specific needs.
- Faster Approval: The streamlined nature of non-regulated loans makes them ideal for time-sensitive projects.
Note: Non-regulated loans are only available for properties that are not intended to be your primary residence.
How to Ensure a Fast Bridging Loan Completion
Here’s a quick checklist to ensure your bridging loan process goes as smoothly—and quickly—as possible:
- Prepare Your Documents: Gather all necessary information before applying.
- Choose the Right Lender: Work with a reputable, privately funded lender specializing in fast completions.
- Be Clear on Your Exit Strategy: A solid repayment plan reassures lenders and speeds up approvals.
- Communicate Promptly: Respond quickly to any requests from your lender or solicitor.
- Consider Dual Representation: Streamline legal processes by using a shared solicitor.
Why Fast Bridging Loans Are a Game-Changer
Fast bridging loans give property developers and investors a critical advantage in a competitive market. Whether you’re buying at auction, funding urgent renovations, or seizing a time-sensitive deal, these loans provide the financial agility you need to stay ahead.
With the right preparation and partners, you can complete your bridging loan in record time and focus on turning your property into a profitable investment.
Final Thoughts
Fast bridging loans are about preparation, partnership, and process. By having your documentation ready, working with a private lender, utilizing AVMs, and exploring dual representation, you can secure funds quickly and confidently.
Ready to take the next step? Speak to a bridging loan expert today and unlock the funding you need to turn opportunities into reality.
For more information contact us for a fees free chat.
https://www.sunrisecommercial.co.uk
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