bridging loans
Fast And Urgent Bridging Loan.
Specialist Bridging Loan Broker Since 2004.
If you’re a property developer or investor and you’ve found a great deal that is time sensitive, it’s vital you move quickly to arrange urgent finance and secure the property.
If you need to stop repossession of the security property, an urgent bridge loan could help
If you need an urgent lump sum to avoid bankruptcy, a bridge loan could provide funding to stop the process.
The problem is, traditional mortgage lenders notoriously takes months to go through the approval process and release funds. Bridge loans on the other hand are typically quicker to arrange. Even better, if needed, you could get your hands on funds in just a few days with an urgent bridging loan.
To find out more about how Tiger Financial could help you secure fast access to short term funding, get in touch with our team today.
How quickly can an urgent bridging loan be organised?
An urgent bridging loan is just that, bridging finance that is needed NOW.
In principle, it’s no different to any other unregulated bridging loan in that it is used primarily by property developers to bridge the financial gap when buying property, renovating property, buying property at auction, or simply aiding business cash flow.
So, just how quickly could an urgent bridging loan be approved and the funds be in your bank account? Typically a specialist urgent bridge can be arranged in 24-72 hours. However, the length of time depends on several factors:
How prepared you are with your paperwork.
The better prepared you are with your documents, the quicker you can expect to move along the application process. If lenders have to keep coming back to you for various pieces of paper, it’s going to slow things down. We recommend having certain paperwork to hand for a fast application including:
- Photo ID e.g. a passport, driver’s licence
- Proof of address e.g. mortgage contract, gas, electricity or water bills, council tax etc. These normally need to be dated within the last three months.
- Bank statements for the last three months
- Asset and liabilities statement
- Your property portfolio as proof you’re an experienced property developer (if you have done this before)
Your precise circumstances.
How quickly you can get the loan secured will be dependent on your unique situation, for example:
- What is your experience of property development finance?
Have you done this before? - Do you have a portfolio of property to prove your creditworthiness?
- How much money do you need to borrow?
- How long do you need to borrow money for?
- How flexible are you with getting it?
- How are you going to spend the money?
- How quickly can you pay the loan back?
- Is this a second charge bridging loan, or a third, or a fourth?
- How much of your own money are you investing?
- What is your personal financial situation like?
- Do you have a good or bad credit history?
- Does the property have planning permission?
- What’s your exit strategy?
- Where is the property in question?
Your chosen lender.
Some lenders will be prepared to move faster than others, but this speed is likely to cost you in increased fees. A good broker, such as Tiger Financial, will be able to advise on which lenders are able to respond quickly, at the best price.
Some bridging lenders are prepared to skip stages of the approval process in order to speed things along. Not all, but some. Again, your broker can advise on which lender is likely to process your application faster than others.
It’s also worth bearing in mind that different lenders use different valuation methods to determine how much you could borrow. What does that mean? It means some lenders calculate your borrowing based on the open market value of the property you’re purchasing, while others base it on auction value.
Who you use to broker the loan.
Working with an experienced specialist finance bridging loan broker such as Tiger Financial, can help expedite the process considerably.
Why Take Out An Urgent Bridging Loan?
If you need money quickly to purchase property, a fast bridge loan could be the answer. Bridging loans are designed to help you bridge the gap for the short term.
We’ve seen developers take out and use fast bridging loans for a variety of reasons, the most common of which include:
- To alleviate business cash flow problems
- To finish a project that’s over run on budget
- To purchase property at auction
- To consolidate existing debt
- To fund additional property purchase and build the portfolio
- To finance an investment opportunity
- To pay off an existing business loan
- To refurbish or renovate a property
- To purchase property in order to flip it
- To avoid repossession of a property
- To avoid paying loan extension fees and penalty interest
Benefits Of Urgent Bridging Loans:
There really is one answer here and it’s this: when you take out fast, short term finance, you get the money you need, quickly.
This means you can purchase the property you’ve got your eye on, or carry out those renovations you desperately need to do, or simply repay an outstanding debt.
When you’re in a hurry and you need further funds now, and you don’t have time to wait weeks for the bank or building society to approve a traditional mortgage application, with a fast bridging loan, the money could be available in less than 72 hours – there is no waiting around.
For commercial property developers, all bridging loans are unregulated, meaning they aren’t regulated by the Financial Conduct Authority. Which means you, the borrower, don’t have to jump through so many assessment hoops to get your application approved.
Urgent bridging loans take away another problem too – the credit checks involved with getting approval from a mainstream lender. If you have unreliable income or poor credit history, it won’t affect your application.
In fact, if you have had problems with money before, then taking out an urgent bridging loan could help you build up a good credit rating again by showing lenders that you can manage your finances responsibly and pay back what you owe on time.
The cons of taking out fast bridging loans.
The cost. These specialist loans are typically more expensive that the mainstream bridging lenders who have more stringent finance requirements.
What to look for in a bridging finance lender
When deciding which lenders to go with, it always pay to do your homework, even if you’re short on time. The things you should be looking for in a reputable lender include:
- A proven track record
- Good reviews from past borrowers
- Recommendations from other property developers or investors
Having a short conversation with the provider before you sign on the dotted line to make sure you understand their processes and what is expected of you, should be a priority, even when working to a tight timeframe.
Lenders to avoid include:
- Avoid lenders who are uncommunicative at this early stage. If you can’t get hold of them this early on in the process, it should raise red flags about their reliability later on down the line. You need to know there is someone available you can talk to, should you run into trouble.
- Avoid lenders who appear too good to be true, they usually are.
How to secure better interest rate on an urgent bridging loan?
Have a valid reason for borrowing:
When you apply for a bridging loan, you need to have a valid reason for borrowing. This means that your explanation has to be convincing enough to convince the lender that they can trust you with their money.
Don’t become so preoccupied with how much you need to pay back each month that you forget why you’re applying.
The difference between an open or closed bridging loan:
If you have a contracted exit in place, such as a signed contract with a Housing Association, this guaranteed exit is known as a “closed bridging loan”, which means the rate may be cheaper.
How to take out quick bridging loan?
The best way to make sure your bridging loan application goes through as quickly as possible is to use a specialist bridging loan broker, like Tiger Financial.
Using a company like ours means you’re not only in experienced hands, but we’ll guide you through the process and get you the best deal for you.
Saying that, there are other ways to speed up the bridging loan application process. For example, in order to process your application quickly, lenders can choose to omit certain steps to speed the process up. E.g. they might skip carrying out a valuation survey themselves and choose instead to accept the title insurance in lieu of legal searches.
You, as the borrower can also help ensure a quick turn around by having all your paperwork ready before you submit the application, and make sure you respond to the lender in a timely fashion.
How much can I borrow quickly?
How much money you can borrow quickly will depend on the lender you choose, your circumstances, and your reason for needing to take out the loan.
What do we mean by that? Well, for starters there is no limit on the amount of money you might potentially borrow, however you’re likely to be capped on the valuation report of the property you’re wanting to purchase, the value of your existing property portfolio, and your financial circumstances.
In most cases, the maximum loan you could take out is typically capped at 70% loan to value. That’s not say you can’t have a higher LTV, it just means you will need to use a mainstream option which will take longer.
What fees can you expect to pay for a fast bridging loan?
There are a few fees you should expect to pay when taking out any bridging finance, and bear in mind, if you need this money quickly, you might have to pay more fees to the lender to speed the process up. Fees can include:
Lenders don’t arrange bridging loans for free. Most loans have an upfront fee to pay to arrange them. This can be either a percentage of the bridging loan, or a fixed amount, it will vary lender to lender.
These can be due should you repay the loan within the minimum term, typically 3 months.
These can include legal fees, admin fees, broker fees, valuation report costs.
This is the fee payable at the end of the loan term. Again, it can be either a fixed amount or a percentage of the loan amount.
If you decide at the end of the loan term not to pay back the loan, but instead to convert it into a long term finance solution, there could be a conversion fee for doing this.
Take out urgent bridge loan
with Tiger Financial.
If you need an urgent bridging loan, your best possible chance of securing funding quickly is to work with a specialist finance broker like Tiger Financial.
At Tiger Financial, we have access to over 400 lenders, meaning we can help you find funding for your precise financial situation.
To apply for finance through Tiger Financial is easy; to begin your application, get in touch with our friendly team today.
Regulatory Information:
Tiger Financial Ltd is a financial services company registered in England and Wales no: 10225910.
Tiger Financial Ltd is directly authorised and regulated by the Financial Conduct Authority (FCA) no 915106.
The FCA does not regulate all mortgage, commercial mortgages or bridging loan and development products. Think carefully when you buy a property before securing debts or credit against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Data Protection No ZA470485