Know exactly how much you want to borrow. Currently, lenders offer bridging loans starting at £5,000 all the way up to £2.5 million.
You need to have an accurate and up-to-date evaluation of your property as this will affect how much you can borrow and how much it will cost.
Bridging loans can last anywhere from 1 month to over 2 years. Knowing how long you need to borrow for means you can get a closed bridging loan, which tend to be cheaper than loans with an open end date.
If your property is mortgaged then this will affect how much you can borrow, and whether you can look at 1st charge or 2nd charge loans. You’ll only be able to secure a 1st charge loan if you have no outstanding borrowing attached to your property.
Applying for a bridging loan is a relatively speedy process. You can apply online and find out if you’ve been successful within 24 hours.
Once approved, it typically could be in your account within 2 weeks. Sometimes you can pay a little extra to speed up processing.
Bridging loans are secured loans, which mean you need to supply an asset to use as security. Some lenders allow land as security for a loan, instead of a home.
Some lenders will still consider your bridging loan application despite bad credit. Be prepared for your eventual loan to possibly be more expensive.
If you have a mortgage or current loan on your house then you need a 2nd charge loan, otherwise you are fine to look at 1st charge loans.
With a closed loan, there is a set exit or repayment date - for example when a property sale is complete. An open loan means a borrow can only guess how long the loan will be required for.