Bridging Loans: How to Ensure a Smooth, Simple and Fast Application

Bridging loans are renowned for their comparative simplicity. From start to finish, it’s possible to complete the application and underwriting processes in their entirety within five working days. This is why bridging loans have become popular among businesses and everyday borrowers in time-critical situations.

The speed and efficiency of the application process is determined primarily by the borrower. Preparedness is the key to both avoiding unnecessary delays and ensuring you get a good deal. Before getting started on your application, therefore, it’s important to ensure you have all the pieces in place.

Conduct the following five checks/activities prior to submitting your application and you’ll find it much easier to access a competitive deal:

  1. Establish Your Requirements 

Perhaps the most important step in the process is to fully establish your requirements. It’s inadvisable to apply for more than you need but you also need to ensure your loan covers your costs accordingly. Take the time to calculate the total costs of the application you have in mind and come up with the minimum bridging loan you can get away with. 

  1. Consider Your Budget 

It’s also of the utmost importance to carefully consider your budget. Bridging loans can be comparatively affordable but nonetheless include interest charges and additional borrowing costs as standard. This is also one of the reasons why it’s inadvisable to borrow more than you need. Your budget will be taken into account by the lender and will be a key factor in determining your eligibility. It’s therefore wise not to push things too far.

  1. Check Your Credit Score 

Qualifying for bridging finance with an imperfect credit history is perfectly possible. Even so, most lenders will examine your credit score as part of the application process. You won’t necessarily be counted out of the running for having imperfect credit but it could impact the affordability of your loan. It’s therefore worth consulting with an independent broker beforehand if you have any concerns or questions regarding your credit score. 

  1. Decide Your Exit Strategy 

Your lender will want to know exactly when and how you intend to repay your bridging loan. It’s worth remembering that bridging finance is designed to be repaid in one lump-sum on a predetermined date after several months. Having a provable exit strategy is not a prerequisite but could nonetheless simplify your application. Considering your exit strategy before applying is also important to ensure you don’t default on your repayments. 

  1. Speak to a Broker 

Whatever your requirements, you’ll find it much easier to get the best possible deal by working with an independent broker. Compare the market in its entirety to ensure your preferences and your budget are paired with your perfect bridging loan. Some brokers even gain access to exclusive deals and discounts you will not find elsewhere. Organise a free initial consultation to discuss the available options and gain the support you need to ensure a smooth and simple application process.