Got an auction sale to close in a hurry? Need a bridging loan to complete?
Bridging loans are now one of the most important weapons in the property investor’s arsenal. It gives you access to capital faster than traditional mortgage finance. In 2024 the UK bridging market boomed to record levels of £9 billion in total advanced.
But there is a problem…
Most borrowers don’t know how to get bridging finance in a hurry. They fumble around, dithering and sending reams of data back and forth to lenders. They could have closed on their property purchase weeks ago.
The real secret? Speed. The faster you move the more property deals you will win. The whole purpose of bridging finance is to move with lightning speed. There is no point having quick finance if your process is glacial.
In this guide I’m going to share with you the exact tips and tactics that get bridging loans approved and completed in days, rather than weeks. Let’s jump straight into the strategies:
What you’ll learn:
- How to get bridging loan approved the fastest
- What documents you need to prepare in advance
- Which lenders to use to ensure speed to completion
- Mistakes that cause avoidable delays
UK Bridging Loans Information
Before applying, you need to get an idea of what lenders are looking for. Bridging is short term finance to “bridge” the gap between two transactions. This could be buying at auction, fixing a chain break, or buying a property before your own house sells…
A UK bridging loans guide can assist in filling the capital gap.
The big news? Speed is getting faster all the time. 2024 saw bridging loan average completion time fall by 23% to just 47 days on average. So lenders can move very quickly indeed if they have to.
But only if you work with them! Getting UK bridging loans information from expert lenders in advance means you understand what lenders need for speed. The right info upfront saves you weeks of back and forth later.
Get Your Exit Strategy Ready
First of all, you need to know the number one thing that lenders want to see:
Your exit strategy. Your whole bridging loan application lives or dies on your exit strategy. This is how you repay the loan. Lenders want to see you have a clear and realistic plan to pay them back. If there is no exit strategy or it’s a dud, your application will be rejected. No matter how great the property deal is, or how perfect the borrower.
The main exit strategies include:
- Selling property after refurbishment
- Refinancing onto a new mortgage
- Selling a different property to release equity
- Inheritance or windfall payment
What makes this work… You must prove it! Don’t just tell the lender you are refinancing, show them evidence of a mortgage in principle. Don’t just say you’ll sell after renovations, show them similar property sales. The more proof you give upfront the faster the approval will be.
Get Your Documents Ready First
This is the one tip that will save you weeks of time…
Almost all bridging applications are delayed because people don’t have their documents in order. Lenders require specific documents to evaluate the application. If you are missing even one, the whole process gets delayed by days, if not weeks.
The key is to have the following ready before you apply:
- Identity proofing documents (passport/driving licence)
- Address proof (utility bill/bank statement)
- Property valuation/survey
- Evidence of exit strategy
- Bank statements (usually 3-6 months)
- Deposit/equity proof
The lenders who move fastest are those who receive complete applications. Send everything upfront and there is no need for all the requests for further documentation later.
The insider tip here? Use a specialist bridging broker who knows exactly what each lender wants. Brokers will tell you exactly what each lender requires and help prepare the docs.
Choose The Lenders Who Specialise In Speed
A key differentiator between bridging lenders…
Not all bridging lenders are equal when it comes to speed. Some pride themselves on moving quickly. Others take their time with long-winded underwriting. If you want a bridging loan fast, you need to only deal with lenders who are set up to make fast decisions.
Look for lenders who can do the following:
- Decision in principle the same day
- Rapid property valuations
- Streamlined application process
- Fast underwriting teams
The market is highly competitive. This is good for borrowers. Lenders know speed is a huge advantage and differentiate on it. Especially with auction finance where you might have just 28 days to complete.
Don’t be afraid to challenge lenders on speed. The best ones will tell you straight away how long they take to complete.
Keep Your Loan-To-Value (LTV) Reasonable
One other fact you probably don’t know…
The lower the LTV the quicker the approval. Lenders perceive lower LTV bridging loans to be lower risk and can process them quicker. Lenders were reported to have average LTV levels of 58% across all loans in 2024. A good rule of thumb.
So if you want to speed up, lower your LTV. If you ask for 75% LTV then you will face more scrutiny and slower process. But if you only want to borrow 50-60% of property value? You will speed through underwriting.
Why does this work? Lower LTV = more equity cushion for the lender. This means even if they do have to take the property back, they can sell it and recoup the loan. This reassures them they are safe and speeds up approval.
Bonus tip. Put more deposit down if speed is an issue. An extra bit of equity could shave weeks off your process.
Use A Specialist Broker
Possibly the single most important tip on this list…
Specialist bridging brokers know exactly which lenders will say yes in your situation. They know the ins and outs of each lender and have direct relationships. They see deals like yours all the time.
The best brokers will:
- Match you to the right lender first time
- Prepare your application correctly
- Chase the lender for a quick decision
- Complete all the paperwork and coordination
Think about it. Without a broker you are simply guessing which lender to try first. You might get rejected and have to start all over again with another lender. This wastes valuable time.
Plus, brokers have access to exclusive rates and products not available to the public. They can negotiate better terms and faster completion times because they already have existing relationships.
Avoid These Mistakes That Slow You Down
The key ways borrowers slow down their own application…
Ironically, most of the things that slow down your bridging loan application are mistakes of preparation. When you avoid these issues, you will speed through the approval process.
- Poor property details – Lenders need good, up to date information about the property. If you are vague, it will cause delays.
- Incomplete financial information – Be upfront about your finances from the start. Trying to hide other properties or credit issues will slow down the process.
- Inflated valuations – Don’t overvalue your property. Get a proper valuation done early on so you know what the lender will see.
- No backup plans – Lenders want to see you have thought of alternative scenarios in case your plan A falls through.
The danger with these mistakes? Delays that could cost you the property deal. So go through this list of dos and don’ts and see if you are guilty of any of them.
How To Close On A Property Fast
Securing bridging finance in a hurry comes down to preparation and partner choice. The market has never been faster. Completion times continue to get faster every year. But borrowers also have to do their part by having all the documentation ready, choosing the right lender and working with professionals who “get it”.
The final tips in this guide, very quickly:
- Document your exit strategy and back it up with evidence
- Have all your docs ready upfront
- Choose lenders who specialise in fast decisions
- Keep your LTV reasonable for quick approval
- Use a specialist broker who knows the market
The big thing to remember about bridging loans is that they are for speed. But only if you are prepared. If you follow the tips above, you can access bridging finance in days rather than weeks.
