Some lenders are demonstrating that it is possible to arrange a bridging loan in two to three days, says a BridgingAndCommercial.co.uk article from November 2016.
A standard mortgage can take a few weeks from the initial application to the money being available. Borrowers who need a short-term loan to secure a property purchase, and need the money quickly, can apply for a bridging loan.
An example of this is an investor who needed money to complete a property investment. He was in a position where if he could not raise finance quickly, he would miss out on the deal. The lender, HFBS, was asked on a Wednesday for a bridging loan of £200,000, and the funds were available to transfer by Friday. This was about 72 hours after the initial application.
Another lender was even quicker, arranging four loans within 48 hours that ranged from one of £50,000 to purchase a property at auction, to one of just under £1m.
Many bridging loans are used to complete or secure property purchases, and can be used until more long-term finance is available. With low interest rates, bridging loans are an attractive form of finance that can be used for many purposes. As well as property purchases, they are also useful for businesses faced with short-term cash flow issues.
Not everyone needs a bridging loan within three days, but most bridging loans can be arranged in a few days. A bridging loan broker has access to the best bridging finance solutions to match a client’s needs.