The UK Bridging Loans Guide
The bridging loan process |
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As an example of the process you'll have to go through to obtain a bridging loan, here's how our partners operate. Your enquiry is delivered to them instantly. They quickly check your details and contact the specialist bridging lenders to find out what they're prepared to offer you "in principle". They then assess what the best quote is and contact you with it. This should be within an hour of your application (during normal business hours). If you want to proceed with the quote, the lender will urgently arrange for a valuation of the property against which the loan is to be secured. You will have to pay for the valuation. (The lender will only go ahead when they've recieved payment). The cost varies but an average would be £200 on a £100,000 property. You can expect the valuation to take up to 72 hours from reciept of payment. However if it's very urgent this can usually be speeded up. Depending on the lender there may be various set up costs. Typically these would be: agreeing to pay the lenders legal fees (usually £350 per property); a possible "completion fee" - for example, 1% of the loan amount - and so on.(NB You would be advised and agree to any such set up costs before they were charged). While the valuation is underway you will need to arrange for your side of the conveyancing to be carried out very quickly. So you'll need to find a willing and capable solicitor or conveyancing agent. This is the tricky bit because, sadly , there aren't too many of them around. However we can help you here so let us know if you'd like a referral. You can expect the entire process to take seven to ten days from start (receipt of your initial application) to finish (ie the loan being paid over). However the turnaround could be even faster, depending on how quickly you need to move and assuming there aren't any major hiccups - for example the valuation doesn't reveal a major problem with the property.
The Valuation This is when the property is checked by a professional valuer who tells the lender what it's worth. This is necessary because the lender is using the property as security on the loan - ie if you default they can sell the proeprty to recoup their money.
Conveyancing is the legal work involved in buying and selling property. It's usually done by either a solicitor or a licenced conveyancer. It involves things like;
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