There is a wide range of time frames in which a bridging loan might close, from three days to two weeks. It's possible to close a bridging loan in a single day by us, though this is extremely unusual. Working with an experienced mortgage broker Essex like We Do Mortgage and being well-prepared helps cut down on the time it takes to obtain a bridging loan. 

Bridging loans, unlike mortgages, are meant to be paid back quickly yet provide the same short-term benefits. If you need to purchase commercial or residential property quickly but don't have access to other financial sources, this may be a viable option for you. Learn how long the process could take, what obstacles you might face, and how you can increase your chances of being approved for bridging loans in Essex.

Can A Bridge Loan Be Authorized Quickly?

Depending on the lender and the borrower's circumstances, the closing of a bridging loan can take anywhere from three days to two weeks. It is extremely rare, but bridging loans in Essex have been paid back in as little as 24 hours. 

What Delays Bridge Loan Applications?

There are a variety of factors that could lengthen the time it takes to apply for a bridging loan, such as:

What The Bridge Loan Entails In Detail

When applying for a bridging loan, there is no set process to follow. Certainly, not every service provider is equal. The time required to close on a business bridging loan from a lender not subject to FCA control is typically less than the time required to close on a residential bridging loan from a lender subject to FCA oversight. This is because, in most cases, obtaining an unsecured bridging loan involves a less rigorous application process.

Examining The Property And Determining Its Value

When a lender requires a property survey as part of the application process, it might cause significant delays. This additional phase may lengthen the deal, but it ensures a fair price for the property.

Negotiations

The negotiation process for a bridging loan may take longer when dealing with larger and more complex credit agreements. Bridging loan brokers often conduct extensive market research to identify the most suitable lender and negotiate the most beneficial conditions on your behalf.

Challenges in the Exit Plan

You need an exit strategy in order to get approved for a bridging loan. These actions demonstrate to the lender that you have a plan for paying back the loan. Your application for a bridging loan may be delayed or even denied if there are issues with your intended exit.

Difficulties In Paperwork

When you delay in submitting the necessary papers, the processing time for your bridging loan could increase. In order to avoid any delays, you should quickly gather the necessary documentation and submit it to your lender.

In What Time Frame Can One Expect To Receive A Bridge Loan?

The mortgage broker in Essex might need some time to process an application for a bridge loan, but there are ways to make it less likely that this will happen. To make sure the lender can process your application quickly, you should have all the information they need ready to send.

If you hire an experienced mortgage broker in Essex to help you with your bridging loans Essex application, it might take less time to get accepted. Asking potential brokers if they have helped other clients get funds like yours is a great way to figure out if they are right for you. The speed of handling applications and the current load should also be talked about.