Bridging loans provide short-term funding for the purchase of a property or to access equity in a property you currently own, so you don’t have to wait to sell an existing one to raise the cash.
There can be some confusion about how the bridging loan process works, as there are some notable differences compared to secured and non-secured financing. To give you a better idea of what to expect, we explain everything in simple terms in our step-by-step bridging loan guide.
Once you have taken some time to consider your options and assess whether a bridging loan is suitable for your needs, you can start your search.
Speaking to a bridging loan broker like Willows can help to simplify the process and make it easier to find a deal that works with your finances.
We offer access to a wide range of lenders along with expert advice based on your circumstances and assistance with documentation and paperwork.
Simply let us know how much you would like to borrow and we’ll take a few details such as your name and property information and discuss your planned exit strategy to see if this is the right option for you.
Once we have enough basic information to start our search, we can get to work finding the best available deals.
We work with a panel of accredited lenders that offer bridging loans for a wide range of scenarios. From loans designed to support self-build projects to deals that can help you prepare a move to another country; our search is matched to your exact needs.
By this stage of the process, we will have enough information to hopefully offer a Decision in Principle (DIP). This is a preliminary offer from a lender indicating that they could provide a bridging loan based on the initial assessment of the application.
It will include the proposed interest rate, costs and fees of taking out the loan, although these will be subject to change.
A DIP is not a formal offer from a lender, as further checks will need to be carried out, and additional documentation submitted to support your application.
Once you are happy to proceed, we’ll issue any required forms and request supporting documents from you.
At this stage, it’s a good idea to appoint a solicitor – if one is needed for your application. Our team will advise on whether you need to hire your own solicitor, as some lenders offer in-house legal services.
Next, you will need to return your completed documents to the Willows team. This can include things like:
Whilst your application is being reviewed, the next step involves organising a property valuation.
The first thing we’ll check is whether a desktop valuation is acceptable. This is a more convenient option as it relies on existing online data about the property and does not require an in-person physical inspection.
If we need to verify some of the details, we’ll instruct a local surveyor to get in touch to arrange a convenient time to visit your property.
With the valuation underway, the lender now has the opportunity to review the documentation you have submitted to support your application.
They will check that all the details are in order and may ask you to submit additional information to help them reach a final decision.
Bridging loans do not require you to make monthly repayments, as the gross loan is settled at the end of the term.
This means that proof of income and affordability checks are less likely to be a requirement for your application.
However, most lenders will carry out final checks to your situation and ensure that a bridging loan is the right solution. Although your property is used as security against the loan, lenders will want to make sure the application makes sense for you and that the exit strategy is valid.
If you have an adverse credit history, you may still be able to obtain a bad credit bridging loan. As long as there is a valid explanation for the adverse credit and your exit strategy is clear, we have lenders who will consider all circumstances.
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Once the valuation is complete and the legal work is underway, the lender can make a final decision about your application.
If they give the green light based on the information you have provided, the lender will issue a formal loan offer.
This can be sent through to you by email, so take your time to read things through and ensure you are happy with the details.
Once you sign the agreement the loan becomes legally binding, so feel free to ask us any questions you may have before you proceed.
If you are happy to go ahead, you can sign the agreement and return the offer to the lender.
Depending on the complexity of your application, the funds can sometimes be released very quickly, which is particularly helpful if you are working to a tight deadline.
There’s no need to feel overwhelmed by the bridging loan process when you use Willows Finance.
Depending on how quickly you can provide the required documents, often we can reach point 6 on the above list within 24 hours.
Our friendly team can answer any questions you have about your suitability, the available deals, documentation, or anything else you need help with.
Taking out a bridging loan is a significant financial commitment, and we’ll do everything we can to make the process as simple and hassle-free as possible.
To get started, simply give us a call on 01656 766 158, and we’ll get the ball rolling for you.
Getting a quote won’t affect your credit score
We’re extremely proud to be rated ‘Excellent’ for our service standards year after year. Since 2008 we’ve helped thousands of customers across the UK to find the right finance for their needs – no matter how complicated the circumstances.
At Willows Finance we ensure your personal information is kept secure and confidential.
PRIVACY OF YOUR INFORMATION
At Willows Finance Ltd, we appreciate that your privacy is extremely important to you. With this in mind, we have put in place a number of measures to ensure that any personal details we obtain from you as a result of visiting this website is processed and maintained in accordance with accepted principles of good information handling and also in accordance with the Data Protection Act 1988.
This statement provides you with details of the type of information we may hold about you, how we obtain and use information and how we protect your privacy.
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Authorised and regulated by the Financial Conduct Authority
Firm Reference Number: 670052
Company Number: 6678545 (Registered in England and Wales)
This document outlines the services we provide. If you need clarification, please contact us at 01656 766158.
We offer first and second charge regulated mortgage contracts for business or personal use.
Other finance options may include:
Regulatory Status:
We offer an advised mortgage broking service and provide enough information for you to make an informed decision.
We are not independent financial advisers. Free debt advice is available from the Money Advice Service.
You can view our privacy policy at: https://willowsfinance.co.uk/privacy-cookie-policy/.
Lenders may also have their own privacy policies which will be provided to you.
We charge a broker fee upon loan completion. The average fee is approximately 5%, depending on your situation.
Fee details:
No refund is offered after completion. You may pay upfront or add the fee to your mortgage. Fees and commission will be detailed in your ESIS and Mortgage Agreement.
You will receive a Mortgage Agreement and an ESIS document detailing:
You may cancel your application anytime before completion without any charge. Mortgages cannot be cancelled after completion.
Missing payments can lead to charges, repossession, and negative impacts on your credit rating.
Consolidating debt may result in higher long-term interest. Securing debt against your home increases risk.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loan secured on it.
If you wish to complain, contact us at:
Willows Finance Limited
Brocastle, Bridgend, CF35 5AS
Tel: 01656 766158
You may be able to refer your complaint to the Financial Ombudsman Service.
We are covered by the FSCS. You may be eligible for compensation of up to £85,000 per person per firm for mortgage advice and arranging.
More info: www.fscs.org.uk
After processing your application, you’ll receive a Mortgage Agreement and have a 7-day reflection period.
Contact us during this period with any questions. To proceed, sign and return the agreement.
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