The process to apply for a bridging loan is relatively straightforward. As a bridging loan broker, we help our clients gather the information bridging lenders need to assess your application right through to drawdown of the facility. Below is a guide of the process we follow:
1. Obtain the following information:
- Understand the security and loan details.
- The exit strategy to repay the bridging loan.
- The borrower and principles behind the business.
- Income, assets and liabilities statement.
- The development, construction information and professional team – if applicable.
- Any other information that supports your application for example, financial accounts, credit history, past projects etc.
In order to speed up the application process, it is important at an early stage appoint a solicitor with the experience to advise deal with bridging loan.
2. Confirm in principle the likely success of your application.
3. Bridging lenders criteria, products, and rates vary widely. We approach lenders that can fund your project and offer the best bridging loan terms.
4. The lender will assess the application and issue an Agreement in Principle (AIP) for the borrower to agree before carrying our credit searches and identification of the principle borrowers.
5. A full credit application is submitted and a conditional offer is issued subject to valuation and other conditions specific to your circumstances.
6. Valuation and bank solicitors are instructed. The valuation needs to be paid direct to the valuer in advance and cost undertaking to cover the lenders legal fees.
7. The valuation is approved.
8. Security is registered.
9. Completion and release of funds.