2nd May 2018 | By Ben Lloyd What Can a Bridging Loan Be Used for? Everything You’ll Need to Get a Bridging Loan Recent reports have revealed that the average bridging finance term is getting longer. Why is this? And how long does it take to get a bridge loan? Our commercial property finance brokers reveal all. The Average Bridging Loan Now Lasts a Year According to a recent report by Bridging Trends, despite a bridge being ‘short term finance’, the average bridging loan now has a duration of 12 months. Traditionally, bridging finance was sold as ‘up to 12 months’, so these findings could indicate that lenders are taking greater advantage of the maximum terms available to them. How Long Does It Take to Get a Bridge Loan? The research also reveals that in 2017 the average bridging finance loan took 43 days to complete. This was down from 45 days the previous period, with the fastest completions seen in the second quarter of the year. It’s important to recognise this is just an average and completion times can vary greatly. Here at Pure Commercial Finance, we’re known for sourcing fast finance and have completed deals in mere days in the past. Read more: Deal of the Month: Funds Released Within 100 Hours! Why Are Bridge Loan Terms Increasing? Greater Competition – With bridging finance increasing in popularity, more and more lenders are entering the marketplace. That means there is more competition and lenders are having to work harder to stand out from their competition. One such way of doing this is by offering longer terms of up to 48 months. An Uncertain Property Market – With Brexit looming, some areas of the country are feeling the effects of an uncertain future with the property market slowing slightly. This means some properties are taking longer to sell and, as a key component of any loan is to lend against a property that has a realistic exit, having an achievable time to secure this has resulted in some lenders extending terms to reflect this requirement. This in theory should prevent borrowers defaulting on their loans when their property fails to sell as quickly as they may have hoped. More Flexible Specialist Lending – It’s no secret that specialist lenders can be more accommodating than those on the high street. These lenders are more likely to take the time to look at the individual circumstances of a case and bend their criteria in order to help the borrower wherever possible. That means, if you are an experienced borrower with a large deposit and clear credit history, a lender may extend the parameters. The average bridging term is affected as a result. If you’re looking for short term finance and are a property owner, a bridging loan could help. Contact our bridging finance team today to discover your options.