How to successfully get a Bridging Loan

Applying for, and successfully getting your bridging loan can be broken down into simple stages. Here’s a quick guide to what you should do, and in what order.

1. You decide on what type of bridging loan you will need:
   Open or closed, the amount you require, and for how long. You also decide what asset or property you will be offering as security.
   
   
2. Use a broker or referral service – such as Means to a Lend – to find a lender that best fits your bridging loan needs.
   
   
3. Provide the lender with a clear summary of what you want, why you need a bridging loan, and details of what you wish to buy.
   This should include the purchase price and the source of the deposit you will be providing.
   
   
4. The lender will issue an offer letter stating their terms and conditions of the bridging loan, and details of what you need to do in order to obtain the finance from them.
   
   
5. The lender arranges a valuation report and supplies your solicitor with all necessary documents for the bridging loan application to proceed.
   
   
6. Your solicitor will arrange to go through the details of the deal with you and ensure your understanding of the bridging loan contract.
   
   
7. Once you are happy with the arrangements you will sign all the paperwork.
   
   
8. The lender will release the funds to your solicitor in preparation for them to complete the necessary legal work.
   
   
9. The funds are distributed to you or directly to the nominated recipient by your solicitors.
   
   
10. Any fees payable by you, such as the broker fee and solicitors costs are paid by you.