A bridging loan is a short-term finance option, often used when quick action is essential. Whether you’re purchasing a property at auction, avoiding a broken property chain, or seizing a time-sensitive investment opportunity, bridging finance enables you to act swiftly and secure the necessary funds.
How quickly can I get a bridging loan?
The primary advantage of a bridging loan is its speed. Unlike traditional mortgages or business loans, which can take weeks or even months to arrange, a bridging loan can be approved and funded much faster.
The exact timescale varies depending on the complexity of the application, the lender’s requirements, and how quickly you provide the necessary information and documentation.
Typically, bridging loans are approved and funded within 5–14 days. In urgent situations, some lenders can release funds within 72 hours, provided all documentation is in place, the property valuation is complete, and security is confirmed.
This rapid access to funds makes bridging loans ideal for situations where missing a deadline could mean losing a property or investment opportunity.
Typical terms of a bridging loan
While terms vary between lenders, here are the main elements you can expect:
- Loan amount: Bridging loans can range from £25,000 to several million pounds, depending on the value of your security.
- Loan term: Usually 1–12 months, although some lenders may offer terms up to 18–24 months.
- Interest rates: Typically higher than standard mortgages or long-term loans, reflecting the short-term, high-speed nature of the finance.
- Repayment options: Interest may be charged monthly and paid monthly, or it can be rolled up and settled at the end of the loan term.
- Security: Most bridging loans require security, usually in the form of property or land (residential, commercial, or mixed-use).
- Exit strategy: Lenders will require a clear plan for repaying the loan, such as selling the property, refinancing into a longer-term mortgage, or generating income from a development project.
When bridging finance makes sense
Bridging loans are especially useful when timing is crucial. Common scenarios include:
- Auction purchases: Completing a purchase before the 28-day deadline.
- Property chains: Completing a purchase quickly to prevent a chain from collapsing.
- Refurbishments or developments: Funding a renovation while arranging long-term finance.
- Time-sensitive investments: Acting fast to secure a business or property opportunity.
Because of their flexibility and speed, bridging loans are a practical tool for both experienced investors and businesses looking to take advantage of short-term opportunities.
How ASC can help
At ASC, we specialise in helping businesses and property investors access bridging finance quickly and efficiently. Our team understands the lender requirements, knows how to prepare applications to avoid delays, and can guide you in selecting the best loan structure for your project.
Working with ASC ensures you get the funds you need on time, with confidence and clarity throughout the process. Whether you’re securing a property, funding a development, or financing an urgent project, we can help you navigate the bridging loan process and achieve your objectives.
