Fast Bridging Finance: How to get quick funding

In property and finance, timing is often the difference between getting an opportunity and missing it entirely. 

That being said, fast bridging finance has become imperative for investors, developers, and buyers who need immediate funds for investment.

Find out here the ins and outs of fast bridging finance and how it can be the answer to your investment restrictions. 

What is Fast Bridging Finance?

Bridging finance is a short-term loan that literally bridges the gap between an immediate financial need and a longer-term funding solution, such as a property sale or refinance, that is why it is commonly used in property transactions where speed is a non-negotiable.

Fast bridging finance, sometimes referred to as quick bridging finance or speed bridging finance, marks a key difference from traditional loans, as it is not just the structure of the loan, but the pace at which it can be arranged and completed.

While traditional mortgages can take several weeks or even months to finalise, fast bridging finance is structured to move significantly quicker.

In the right circumstances, funding can be arranged in a matter of days, allowing borrowers to act decisively when opportunities arise.

How Fast Can You Actually Get Bridging Finance?

Completions for fast bridging finance typically range between three to seven days, but the speed of bridging finance depends on the strength of your exit strategy and application, while also relying on how efficiently the process is managed.

In some cases, borrowers can receive terms on the same day, particularly where the transaction is straightforward and the required information is readily available.

This is considerably faster than traditional lending, but it still depends on key factors such as how quickly a valuation can be arranged, how responsive solicitors are, and whether the deal itself has some complications down the road.

When Do You Need Quick Bridging Finance?

There are a range of scenarios wherein bridging finance is the right way forward, some include:

#1 Auction purchases with 28-day deadlines

Auction purchases are among the most common scenarios where fast bridging finance is required. 

With strict completion deadlines, often within 28 days, buyers need a funding solution that can be arranged fast.

Thus, quick bridging finance means you’re able to secure the property without risking delays that could come along with traditional mortgages.

#2 Purchasing below-market-value properties

In competitive markets, below-market-value opportunities don’t stick around; that is why speed bridging finance enables buyers to act immediately, securing assets before those attempting to secure a mortgage have a chance to snap up the opportunity.

#3 Chain breaks or urgent refinancing

When a property chain breaks down or an existing loan needs to be refinanced quickly, fast bridging finance makes sure that transactions continue moving and prevents costly delays or penalties.

#4 Unmortgageable or distressed assets

Properties that are considered un-mortgageable, whether due to condition or structural issues, often require refurbishment before qualifying for long-term finance.

But if you don’t have the mortgage, you can’t manage the changes that need pursuing.

That is why quick bridging finance provides the initial funding needed to acquire and improve the asset, so mortgages can be arranged after the fact.

What You Need to Secure Speed Bridging Finance?

Securing fast bridging finance is largely about preparation, thus a clear and credible exit strategy is a central aspect and an absolute non-negotiable, whether that involves selling the property or refinancing onto a longer-term product.

The strength of the asset itself also plays a major role in how fast you get your funds, since properties with strong fundamentals, such as good location or clear value-add potential, are more likely to progress quickly.

Equally important is having solicitors ready, delays in legal processes are one of the most common reasons transactions slow down, so working with experienced professionals can make a significant difference.

“Okay, but what might slow bridging finance down?”

Speaking of what slows down the process, while bridging finance is designed for speed, certain factors can still cause delays. 
For instance, issues with property title, such as restrictions or disputes, can considerably slow the legal process.

Another commonality is valuation delays are another common obstacle; if access to the property is limited or specialist reports are required, this can impact timelines.

Working with inexperienced lenders can also affect speed, so choose wisely. 

Missing or incomplete documentation due to inexperience is either on a lender’s or borrower’s behalf, and is another frequent cause of disruption, particularly when lenders are ready to proceed but are waiting for key information.

Speak to a Ms Lending for Specialist Advice in Fast Bridging Finance

Fast bridging finance is not as easy as getting a high interest loan that leaves you in the dark, in fact with the right lender like us at MS Lending group, you can rely on a team that understands how to structure and execute deals in your best interests. 

If you are considering fast bridging finance, the best starting point is a conversation, we can talk about your requirements, property details, and intended exit strategy.

Get in touch today for more information on pursuing your next investment. 

Frequently Asked Questions

How do I get a fast bridging loan as a first time lender?

Speed in bridging finance comes down to efficiency of both the lender and the borrower, while you’re able to rely on a lender that has experience, as a first time borrower you should first enquire and find out if this is the route for you. In terms of what to look out for, use a lender that has delegated underwriting which can significantly reduce decision times, 

Instructing a valuation immediately is another important step, the sooner this process begins, the less likely it is to delay completion.

Preparing all necessary documents upfront, including details of the property, the borrower, and the exit strategy, gets your application moving fast as a first time lender. 

Are fast bridging loans more expensive?

Fast bridging finance can sometimes carry higher costs than slower, more traditional options, yet this reflects the service of speed and flexibility; not to mention the risk to lenders that must be vigilant about their criteria. 

However, the value of quick bridging finance often outweighs the additional cost, ultimately securing a property below market value or completing a deal within a strict deadline can generate returns that far exceed the cost of the loan.

What does fast bridging finance look like in the real world?

There are plenty of scenarios that allow for bridging finance to be the problem solver, for instance, in an auction scenario, a buyer may use fast bridging finance to complete within 28 days, securing a property that would otherwise be unattainable through traditional lending. 

In another case, an investor might use quick bridging finance to fund a commercial conversion, adding value before refinancing onto a longer-term product.

Fast bridging finance is also used to refinance existing debt, particularly where there is a risk of default.