According to brokers the majority of bridging loan proposals take between two and four weeks to progress from application to drawdown.
Recent research, carried out by United Trust Bank, found that 27% of brokers indicated that in their experience the average time elapsed from application to completion was two to three weeks whilst 36% suggested three to four weeks was the average. 29% indicated that bridging cases generally took more than four weeks to complete.
8% brokers responded that, in their experience, cases were generally completed in under a fortnight.
Alan Margolis, head of bridging at United Trust Bank, said: “This research supports our own experience that cases where it’s necessary to complete a bridging loan in just a few days or even hours are rare. We are very occasionally called upon to pull out all the stops when circumstances demand a very swift turnaround and we’re certainly capable of doing so, but in the main what borrowers need most is the certainty that bridging finance will be available rather than needing to have the money itself in say, 24 hours.
“What is key is that we, our Solicitors together with our brokers work towards meeting the customer’s deadline whether it is imminent or some weeks away. Unlike normal mortgages our bridging loan process doesn’t have to be linear. For instance, solicitors can be contacted and instructed before the valuation is instructed.
“Flexibility is also important in process and in approach. This is inherent in the nature of our bridging loans which are bespoke and require a personalised service.”