How long does a bridging loan take to complete

To date, we’ve arranged a bridging loan in just 4 days. Speed in completing a bridging loan depends largely on the exit strategy:

Sale Exit The valuer checks profitability and market demand, making this the quickest process, ideal for flipping projects.

Remortgage Exit This involves more thorough checks on credit status, income, experience, and assets, typically completed within 1-2 weeks.

For a quick application, a clear exit strategy is essential. Additionally, legal requirements can affect timing. Choosing a lender that doesn’t require extensive legal searches and accepts an indemnity policy can significantly speed up the process, crucial when facing tight deadlines, such as a 28-day auction completion.

A bridging agreement in principle is usually issued within one to two working days of a complete enquiry, sometimes the same day, because it relies on the information provided rather than a valuation or legal work.

Bridging finance is often used where speed matters, for example when buying at a traditional auction, where the contract sets a short deadline to complete. For investment purchases the underwriting is often on a non-status basis, focused mainly on the property and its exit, which can shorten the time to offer and completion.

Take legal advice from a qualified solicitor before taking out a bridging loan.

Straightforward residential cases complete in as little as 3 to 7 days using automated valuations and search indemnity insurance. Typical cases take 1 to 3 weeks, and complex commercial, land, or multi-security cases take 3 to 4 weeks.

Traditional property purchases often require local searches, which can take up to 18 weeks depending on the local council. However, specialist bridging lenders typically accept an indemnity policy instead, significantly speeding up the process.

An indemnity policy acts as insurance against potential issues normally identified in local searches, such as planning permission violations or local authority notices. For faster bridging loan transactions, seek lenders who use indemnity policies or bypass local searches entirely. This approach not only quickens the process but also ensures a smoother transaction.

Borrowers should consult their legal advisors to understand the implications of using an indemnity policy and ensure it meets their specific needs for the property purchase.