5 Common Mistakes to Avoid When Applying for Bridging Finance
At Onate, we review hundreds of bridging loan applications and we’ve noticed a few recurring mistakes that can slow down, complicate, or even derail the lending process.
Whether you’re an experienced property investor or securing bridging finance for the first time, being aware of these pitfalls can make all the difference.
Here are five of the most common mistakes we see and how to avoid them.
1. Failing to Present a Clear Exit Strategy
Lenders need to see a realistic and achievable plan for repayment, whether that's property sale, refinancing, or asset disposal. Vague or overly optimistic exits are one of the main reasons applications are delayed or declined.
2. Overvaluing the Security Property
Applications can hit roadblocks when borrowers rely on informal valuations or personal expectations of property value. Lenders base decisions on independent professional valuations, if the valuation comes in lower than expected, it can create funding gaps or require additional security.
3. Leaving the Application Too Late
Bridging loans are designed for speed, but legal and valuation processes still take time. Borrowers who wait until a purchase deadline or refinance expiry is days away, risk putting the entire deal at risk. Early engagement with a lender is always the best strategy.
4. Choosing the Wrong Solicitor
Selecting the wrong solicitor is one of the biggest causes of delay in bridging finance.
Borrowers sometimes use a family solicitor or a general practice firm unfamiliar with bridging timelines.
For fast completions, it’s essential to work with a solicitor who; understands bridging loan requirements, responds quickly and communicates well and can handle lender requirements efficiently. A proactive, experienced solicitor can save days, even weeks, in the completion process.
5. Submitting Incomplete or Poorly Prepared Documentation
Speed in bridging relies on preparation. Being well organised will result in quicker drawdowns.
Avoiding these common mistakes can make your bridging finance journey faster and more efficient.
To find out more about Onate’s lending process, call (01) 697 2588 or email hello@onate.com