How to Get a Bridging Loan

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Alternatives

Exit Plan

Brokers

Documents

Getting a bridging loan via a specialist broker will save you both time and money.  Utilising their experience and knowledge of in-depth lending criteria will aid your chances of the finance being agrees and paid out.

It’s always best to use an independent mortgage broker if you are considering getting a bridging loan as they’ll also consider if there are any alternative products for your situation.

Alternatives

With the cost of bridging finance being high, if any alternative products meet your requirements and you fit criteria then an independent broker can save a lot of money.

Alternative lending products include: 

• A residential purchase or remortgage.  
• Buy to let mortgages.  
• Age 50+ mortgage solutions.  
• Secured loans.  
• Interest-only mortgage options.  

Exit Plan

To get approved for a bridging loan you’ll need an exit plan in place from the outset.  Your lender will want to know how you plan to repay the loan; this can be from several things including: 

• Remortgage the property onto a new buy to let or residential long-term mortgage product.  To qualify for a remortgage, the property will need to be in a ‘liveable’ condition with a working bathroom and kitchen.  
• Sell the property, or another one, and repay the loan and any associated fees.  
• Encashment of an investment or pension fund to repay the loan. 
• Inheritance or probate payment.  
• Anything else?

Brokers

A mortgage broker will research the market for you and recommend the best bridging loan, or alternative, based on your individual situation.  

Brokers, like us, often have access to exclusive deals and products that are only available via intermediaries. Our team have relationships and contacts with all the lenders which can help get you with the right one first time, saving you time. 

You’ll also be guided along the application and underwriting process by an experience bridging loan case manager who will help progress your application through to you receiving the money.  Having help and support on your side throughout the process will also help your chances of being accepted for a bridging loan.  

Mistakes can be costly with bridging finance, therefore, getting the right product is important.  Costs and interest rates can build up; therefore, you do not want to be paying out for duplicate legal fees or valuations having chosen the wrong lender.

Documents

To get a bridging loan, you’ll be required to provide various documents as part of the application process.  These documents are often bespoke to your individual situation, however, here are some examples of what you’ll need:  

• Bank statements, typically 3 months. 
• Identification, in the form of a passport or driving licence.  
• Proof of address, in the form of a recent utility bill.  
• Proof of income, such as payslips, P60, or HMRC tax overviews.  
• Evidence of assets and liabilities including details of any existing mortgages, on or off the property you are raising finance against.  
• A business plan demonstrating how you are going to repay your bridging loan.  
• Bespoke documents to your current situation as and when required, examples include a schedule of works or a mortgage agreement in principle. 

Written by
Malcolm Davidson
Managing Director of UK Moneyman Ltd.
MAQ & CeRER Qualified

22nd April 2024

About the Author

Malcolm Davidson

Managing Director of UK Moneyman LTD

Malcolm is one of the UK’s most well-known and respected Mortgage Advisors. He is passionate about providing a 5* customer experience and he has also trained and mentored dozens of fellow Advisors in a career that is now in its third decade.

In addition to his day to day duties as Managing Director, Malcolm still gives out mortgage advice and feels lucky that his job is also very much his hobby.

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