Fast bridging loans for property finance.
You’ve seen the property of your dreams, or maybe an absolute bargain that you want to snap up quick.
But traditional mortgages take forever. 10-12 weeks on average. That’s great if you don’t need the money urgently. But what happens when you need it yesterday?
As the UK bridging market continues to boom, reaching £9 billion in loan books this year, more borrowers are realising just how fast and effective bridging finance can be when you need urgent money.
Let’s cover exactly what fast bridging loans are, how quickly you can get money, and the main reasons you should be using them.
In this guide you will learn:
- What Are Fast Bridging Loans?
- Why Speed Is Everything
- How Fast Can You Really Get Funded?
- The Real Benefits Of Fast Bridging Loans
- When Should You Use Fast Bridging Loans?
- The Exit Strategy Is Critical
- What About The Costs?
- Working With A Broker Makes All The Difference
- Wrapping This Up
What Are Fast Bridging Loans?
Fast bridging loans are essentially short-term loans designed to bridge the gap between an immediate need for funds and your longer-term financing solution.
They’re the express lane of property finance.
The whole point of a bridging loan is to take the time out of the equation. While a mortgage takes 10-12 weeks to arrange, a fast bridging loan is arranged in days.
With some lenders the whole process can be done within 72 hours for smaller loan amounts.
The key thing to understand:
All bridging loans are secured against property. Lenders are securing the loan against the value of the asset, not just your credit history or income. That’s what allows them to be arranged so quickly.
Why Speed Is Everything
Let me tell you the single biggest problem with the traditional property finance market.
It’s slow. Really slow.
Bidding at auction. 28 days to complete. Break in a chain. Need to move fast. Property needs refurbishment. Missed an investment opportunity? No time to waste!
The traditional mortgage market is simply not designed to work at this speed. But if you need funding yesterday, speed focused bridging loans were made for you.
The market is evolving to reflect the need for urgency. Completion times dropped by 23% from 58 days in 2023 to 47 days in 2024. That’s a huge acceleration and is helping more borrowers get the deals they want.
And the best part?
Specialist lenders can complete even faster if the situation requires it.
How Fast Can You Really Get Funded?
OK, now I’m going to show you exactly how quick we are talking…
For loans up to £300,000 some lenders can provide funds in just 3 working days.
For larger loans up to £750,000, average times are around 5-7 days.
Now, here’s what most people don’t realise:
You can shave days off your funding timeline by being prepared. Have all your documentation ready, work with a specialist bridging broker and choose the right lender, and you can get funded faster.
Fastest deals occur when:
- Borrowers have all documentation prepared up front
- Specialist bridging brokers are used
- Exit strategy is clear and well thought through
- Property is easy to value (no structural issues)
- Borrower is responsive to lender requests
It’s really that simple. The more organised and prepared you are, the quicker you get the money.
The Real Benefits Of Fast Bridging Loans
Speed is only the start. Fast bridging loans offer all the usual benefits of bridging, plus some unique ones.
Break Free From Property Chains
Chain collapses are the curse of buying property. One person lets their offer fall through, and suddenly everyone’s world is falling apart.
By using fast bridging finance to remove your dependency on a sale, you suddenly become a cash buyer in control of your own timeline.
Grab Auction Opportunities
Auction properties almost always sell below market value. The trade off is you have 28 days to complete. Fast bridging loans allow you to move that quickly.
Refurbishment Funding
Bought a property that needs work? Fast bridging loans cover both the purchase and refurbishment costs, with an exit strategy built in to refinance onto a traditional mortgage or sell for profit.
Gazumping
Want a property, but the seller is getting antsy waiting for your mortgage to complete? They’re likely to take an offer from another buyer that can pay in cash. Bridging finance can turn you into that cash buyer.
When Should You Use Fast Bridging Loans?
Fast bridging loans won’t be for every borrower… But they’re ideal in certain situations:
Auction Purchases: As mentioned, the 28-day completion window on auction properties means traditional mortgages are almost impossible. Fast bridging is almost always your only option.
Chain Breaks: Your dream home has been found, but the seller’s buyer has pulled out. A bridging loan means you don’t need to walk away.
Quick Flips: You’ve found a property that needs some work and you can see the profit in it once it’s done. Fast bridging finance buys you time to complete the refurbishment and sell for a higher price.
Investment Opportunities: Spotted a below-market-value bargain, but know there are others trying to grab it? Speed is of the essence, and bridging finance moves quicker than anything else.
Impressed already? You should be.
The Exit Strategy Is Critical
OK, here’s one very important piece of information I have to share…
Every single bridging loan application needs a clear, defined exit strategy. That’s how lenders know you have a credible way to repay the money.
The exit strategy can be one of the following:
- Selling your existing property
- Refinancing onto a traditional mortgage
- Selling the property you have just purchased
- Use of funds from another source
A clear and credible exit strategy will speed up approval. Even more so if you have a Decision in Principle from a mortgage lender. That gives lenders confidence you have a way to repay.
What About The Costs?
Fast bridging loans do cost more than traditional mortgages.
Interest rates are higher, normally between 0.4% to 1.5% per month. Yikes, right? That’s up to 18% per year.
But
Remember these are short term loans designed to be repaid as soon as possible.
Think of it this way. If fast bridging finance helps you buy a property £30,000 below market value, the interest for a few months is nothing on the savings you’ve made.
The speed and flexibility is often worth the extra cost.
Working With A Broker Makes All The Difference
If you want to get funded as fast as humanly possible…
Work with a specialist bridging broker. No one else is quite as fast.
Brokers have the contacts at the lenders, know who works fastest and can match you to the right lender instantly.
A broker can get a decision within 24 hours if you’re prepared. Going direct to the lenders is a longer process because you’re not familiar with them and their requirements.
Wrapping This Up
Fast bridging loans have revolutionised the property finance industry in the UK.
With completion times dropping to all time lows and more lenders joining the market all the time, now is the best time to be looking at this option.
Fast bridging loans are changing the game, giving borrowers the speed to win at auctions, prevent chain breaks, and move on investment opportunities before other people do.
It all comes down to being prepared. Have your documentation ready to go, a clear exit strategy defined and work with specialists who know how to move as fast as you do.
Property markets move quickly. Fast bridging loans let you move even quicker.
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