The Commercial Bridging Loan Application Process
Applying for a **commercial bridging loan** can feel daunting if you have never done it before. The good news is that the process is considerably faster and more straightforward than applying for a traditional commercial mortgage. Many bridging applications complete within 5 to 10 working days, and some in as little as 48 hours.
This guide walks you through each stage of the application, explains what lenders look for, and shares practical tips to help you secure funding as quickly as possible.
Before You Apply: Preparation Is Everything
The speed of your bridging loan application depends heavily on how well prepared you are before you pick up the phone. Gathering the right information upfront can shave days off the process.
Define Your Requirements
Before approaching a broker or lender, be clear on:
- How much you need to borrow and the property value (this determines your LTV)
- What the funds are for — purchase, refurbishment, refinance, or a combination
- Your timeline — when you need funds and how long you need the loan
- Your exit strategy — how you will repay the bridge (sale, refinance, or other means)
Assess Your Eligibility
While bridging lenders are more flexible than traditional mortgage providers, they still have minimum criteria:
- Property security: You need a property (or properties) to secure the loan against
- Equity: Most lenders require at least 25% equity (75% maximum LTV)
- Exit strategy: A realistic, demonstrable plan to repay within the loan term
- Experience: For development or refurbishment projects, lenders prefer borrowers with a track record
**Key Takeaway:** Your exit strategy is the single most important factor in a bridging loan application. Lenders need to be confident you can repay. A weak exit strategy is the most common reason for decline.
Step 1: Speak to a Specialist Broker
While you can approach bridging lenders directly, working with an experienced broker **offers** significant advantages:
- Market overview: A broker knows which lenders suit your specific scenario. The bridging market has dozens of active lenders, each with different appetites and criteria.
- Rate negotiation: Brokers with volume relationships often secure better terms than direct applicants.
- Speed: A good broker knows exactly what information each lender needs and can package your application to avoid delays.
- Problem solving: If your case has complexities — adverse credit, unusual property, tight timeline — a broker can steer you to the right lender first time.
At Commercial Mortgages Broker, our initial consultation is free and typically takes 15 to 30 minutes. [Contact us](/contact) to discuss your requirements.
What to Expect From the Initial Call
During your first conversation, your broker will ask about:
- The property you are purchasing or refinancing
- The purchase price and estimated current market value
- How much you need to borrow
- Your deposit or existing equity position
- Your exit strategy in detail
- Your timeline and any deadlines
- Your borrowing entity (personal name, limited company, SPV, or pension fund)
- Any credit issues or complexities
Based on this information, your broker will identify suitable lenders and provide indicative terms.
Step 2: Receive a Decision in Principle (DIP)
Once your broker identifies the best lender for your case, the next step is securing a **Decision in Principle** (DIP), sometimes called an Agreement in Principle.
A DIP is a conditional approval based on the information you have provided. It confirms that the lender is willing to proceed, subject to:
- Satisfactory property valuation
- Verification of the information you have provided
- Completion of legal due diligence
**Timescale**: Most bridging lenders issue a DIP within 24 hours, and many within the same day. Some automated bridging platforms can issue a DIP in minutes.
The DIP is not legally binding, but it gives you confidence to proceed with the transaction and demonstrates to sellers or agents that you have funding in place.
Step 3: Gather Your Documents
Once you have a DIP, you need to provide supporting documents. Having these ready in advance dramatically speeds up the process.
Essential Documents for All Applications
- Photo ID: Passport or driving licence for all borrowers and guarantors
- Proof of address: Utility bill or bank statement dated within the last 3 months
- Proof of deposit: Bank statements showing the source of your deposit funds
- Property details: Full address, estate agent particulars, and any existing documentation
- Exit strategy evidence: This varies depending on your exit route (see below)
Exit Strategy Documentation
**If your exit is a refinance:**
- Decision in Principle from a long-term lender
- Evidence the property will meet the refinance lender's criteria (or will after works)
**If your exit is a sale:**
- Evidence of comparable sales in the area
- Marketing plan or agent instruction if the property is already on the market
- Any offers received
**If your exit is from another source:**
- Evidence of the funds (investment maturity, inheritance probate, business sale documentation)
Additional Documents for Company Borrowers
- Company accounts: Last 2 years if available (not always required for SPVs)
- Company registration: Certificate of incorporation and memorandum of articles
- Director details: ID and proof of address for all directors and persons with significant control
For Refurbishment or Development Projects
- Schedule of works: Detailed breakdown of planned works with costs
- Planning permission: If applicable, or evidence of permitted development rights
- Contractor quotes: From reputable builders
- Post-works valuation estimate: What the property will be worth after improvements
**Key Takeaway:** The most common cause of delay in bridging applications is missing documentation. Prepare everything before your broker submits the application to the lender.
Step 4: Property Valuation
The lender will instruct a **RICS-qualified surveyor** to value the property. This is a critical step because the valuation determines how much the lender will actually advance.
What the Valuer Assesses
- Current market value: What the property is worth today in its current condition
- 90-day forced sale value: What it would achieve at auction if the lender needed to sell quickly (this is the figure most bridging lenders use for LTV calculations)
- Gross Development Value (GDV): For refurbishment or development projects, the estimated value after works are completed
- Reinstatement value: The cost to rebuild for insurance purposes
Valuation Timescale
Most bridging valuations are completed within 2 to 5 working days of instruction. For urgent cases, some valuers offer a 24-hour turnaround for an additional fee.
Valuation Costs
Expect to pay between £500 and £2,500 depending on the property value and complexity. This fee is typically paid upfront by the borrower.
Step 5: Legal Process
Both you and the lender need legal representation. The legal process runs in parallel with the valuation.
What Solicitors Handle
- Title checks: Confirming clear title to the property
- Searches: Local authority, environmental, and drainage searches (though many bridging lenders accept indemnity insurance in place of full searches to save time)
- Anti-money laundering: Verification of identity and source of funds
- Loan documentation: Preparing and agreeing the facility agreement and legal charge
Speeding Up the Legal Process
- Instruct solicitors immediately once you have a DIP — do not wait for the valuation
- Use a solicitor experienced in bridging finance. Solicitors unfamiliar with bridging can add weeks to the process
- Provide complete information upfront. Solicitors' most common complaint is chasing borrowers for missing details
- Consider dual representation: Some lenders allow one solicitor to act for both parties, which is faster and cheaper
**Timescale**: With an experienced solicitor, the legal process for a bridging loan typically takes 5 to 10 working days.
Step 6: Formal Offer and Completion
Once the valuation is satisfactory and the legal work is progressing, the lender issues a **formal offer**. This is a binding document setting out:
- Loan amount
- Interest rate and payment structure
- Arrangement and other fees
- Loan term
- Any special conditions
Review the offer carefully with your broker. Once you accept, your solicitor completes the remaining legal work and arranges for funds to be drawn down.
Completion Day
On completion, the lender transfers the loan funds to your solicitor, who uses them to complete the property purchase (or pay off existing charges if refinancing). The legal charge is registered against the property.
The whole process from application to completion typically takes:
- Fast track: 3 to 7 working days
- Standard: 10 to 15 working days
- Complex cases: 3 to 4 weeks
Tips to Speed Up Your Application
- Have all documents ready before you apply. This alone can save a week.
- Use an experienced bridging broker. They know which lenders match your case and what information to provide.
- Instruct a bridging-experienced solicitor. Ask your broker for a recommendation.
- Be responsive. Answer queries from your broker, solicitor, and lender the same day.
- Be honest about any issues. Adverse credit, complex ownership structures, or property defects are better disclosed upfront than discovered during due diligence.
- Consider the lender's panel solicitors. Using a solicitor already on the lender's panel avoids the need for separate panel approval.
What Can Go Wrong — and How to Avoid It
Down Valuation
If the surveyor values the property below your expected figure, the lender may offer less than you need. Mitigate this by:
- Getting your own informal valuation or comparable evidence before applying
- Being realistic about property values
- Having contingency funds available
Credit Issues
While bridging lenders are more flexible on credit, serious issues (CCJs over £500, recent defaults, or bankruptcy) can limit your options. Disclose these upfront so your broker can approach the right lender.
Incomplete Exit Strategy
If your exit strategy lacks evidence or credibility, the lender will decline. Make your exit plan as concrete as possible with supporting documentation.
Legal Delays
Title issues, missing searches, or slow solicitors are the most common cause of delays. Choose your legal representation carefully and stay in regular contact.
Understanding the Costs
Before committing, ensure you understand the full cost of your bridging loan:
- Interest: 0.45% to 1.5% per month depending on LTV, property type, and risk
- Arrangement fee: Typically 1% to 2% of the loan amount
- Valuation fee: £500 to £2,500
- Legal fees: £1,000 to £3,000 for both your and the lender's solicitor
- Broker fee: Often paid by lender commission, but check with your broker
- Exit fee: Some lenders charge 1% on redemption (many do not)
Use our [bridging finance calculator](/calculators/bridging) to estimate total costs for your specific scenario.
Ready to Apply?
If you are considering a commercial bridging loan, the best first step is a conversation with a specialist broker. We can assess your situation, identify the most suitable lender, and guide you through the application from start to finish.
[Contact Commercial Mortgages Broker](/contact) for a free, no-obligation consultation. With access to the full bridging market and decades of banking experience, we make the process as fast and straightforward as possible.
Frequently Asked Questions
How long does a commercial bridging loan application take?
From initial enquiry to funds being released, most applications complete in 5 to 15 working days. Straightforward cases with all documentation ready can complete in as little as 3 days. Complex cases may take 3 to 4 weeks.
What credit score do I need for a bridging loan?
Bridging lenders are more flexible than traditional mortgage providers. While a clean credit history secures the best rates, many lenders will consider applicants with adverse credit including CCJs, defaults, and missed payments. The key factor is your exit strategy and the security offered.
Can I apply for a bridging loan through a limited company?
Yes. Many borrowers use limited companies or Special Purpose Vehicles (SPVs) for bridging finance. Company applications may require personal guarantees from directors. Your broker can advise on the most tax-efficient structure.
Do I need to provide a business plan?
Not for a straightforward purchase bridge. However, if the loan involves refurbishment or development, lenders will want to see a schedule of works, cost breakdown, and evidence of your experience or your contractor's credentials.
What happens if I cannot repay the bridge on time?
Most lenders will consider an extension, usually for an additional fee and at a higher interest rate. However, relying on extensions is risky and expensive. Always build contingency time into your plans and ensure your exit strategy is realistic.
*Written by Matt Lenzie, Founder of Commercial Mortgages Broker. Ex-Lloyds Bank & Bank of Scotland.*