Bridging loan applications – in 4 simple steps.
Bridging loan applications are important!
Getting your application right and complete will help us get your funding through quickly!
Follow our simple rules and we’ll get you the best bridging loan quote, quickly and efficiently.
You will already have seen our finance top 7 tips to be ready for a property finance application so here are the Acorn.finance 4 steps to get your bridging loan bliss!
1 – What is the bridging loan for?
This is the first part of the bridging finance application. So the more information we have up front, the faster your quote will be!
- Describe the property (or provide the sales details if available)
- What’s the address?
- Why are we bridging the purchase? (for example; time constraints, refurbishments needed or something else?)
- Do you need planning permission or building regulations?
- Describe the property (or provide the sales details or an old valuation)
- What’s the address?
- Why are we bridging? (for instance to repay other finance, capital raise for another project or something else?)
If you have other information you think might be relevant to the lender then let us know. After all, information that they have to ask us about will only mean the application takes longer.
2 – Getting the numbers right
Getting the funding right is another important part of the application, in particular the build costs and finished value. So try your best to provide the figures in detail, provide the evidence or assumptions behind your figures to reduce any uncertainty for the lender.
3 – Who does what?
Firstly who is the borrower? For a limited company or trust then let us have the details of the directors and the main shareholders (>20% shareholding).
If there’s renovation work or development to complete then let us know who will be doing the work and what experience they have. If you’re just going to redecorate then you don’t need much experience. But where specialist skills are needed, highlight for us who will be doing what and how much experience they have!
4 – The exit
Finally – How is the bridging loan going to be repaid?
If you’re planning to sell the property then check out the comparable properties and justify your planned sale price.
Conversely, if you’re going to refinance onto a term mortgage then check out the market rent for the area. You’ll also need to be eligible for the mortgage you’ll need, sometimes the bridging lender will ask for a decision in principle from the mortgage lender to prove this!
Whichever option, provide us with evidence to back up your claims!