In Manchester, a bridging loan serves to address short-term financing needs, whether concerning a residential or investment property.

Additionally, bridging loans in Manchester can be utilised even when there is an existing mortgage on the property, provided there is sufficient equity available.

While the specifics of the bridging loan application process may differ among lenders, it typically comprises three key stages, tailored to your individual circumstances and objectives. These stages commonly include:

1. Decision in Principle

A mortgage broker in Manchester will carefully assess your unique circumstances and recommend the most suitable type of bridging finance in Manchester during a free consultation, without any obligation on your part. The ideal loan option for you will be determined by various factors, including:

  • The purpose of the loan, whether it’s for capital raising, a new purchase, or repaying an existing bridging loan.
  • Whether the application will be made jointly or in your sole name.
  • Your current financial situation, including assets and liabilities.
  • Employment status and income details.
  • Your creditworthiness, which will be evaluated.
  • Your objectives and the proposed repayment strategy for the loan.

Following this consultation, a decision in principle will be provided, pending valuation, surveys, and underwriting processes.

2. Application Process 

Once you’ve agreed with the recommendation and are prepared to proceed, your broker will submit a comprehensive application to the lender.

At this stage, the legal procedures will kick in, and associated fees will come into play. Your mortgage broker will provide a breakdown of all fees beforehand, ensuring you understand the process and when payments are due.

A crucial step involves a valuation of the property to confirm its value aligns with your expectations and meets the lender’s criteria regarding type and construction.

During the application process, you’ll need to provide various documents, including:

  • Bank statements covering typically the last three months.
  • Identification documents.
  • Proof of income.
  • Details of your assets and liabilities, including any existing mortgages.
  • A business plan outlining your strategy for repaying the bridging loan in Manchester.
  • Tailored documents specific to your circumstances, such as a schedule of works or a mortgage agreement in principle.

An underwriting team will meticulously review your application before making a decision.

Working with an experienced bridging loan broker enhances your chances of approval, as they possess extensive knowledge of lending criteria and maintain strong relationships with lenders.

Furthermore, if you haven’t already engaged a lawyer, your broker can recommend one to handle the legal aspects of the process.

3. Completion

If your lender approves your application and you meet their underwriting criteria, along with a satisfactory valuation and legal process, you’ll receive a formal offer of terms.

Upon receiving and signing the offer of terms by both parties, the funds will swiftly be transferred to your nominated bank account.

Typically, the entire process from initial enquiry to completion takes around 2 to 3 weeks. However, when time is of the essence, this timeframe can be expedited.

If you anticipate a future remortgage in Manchester to repay the bridging loan post-refurbishment, your broker can also assist with this if needed.

Date Last Edited: November 8, 2024