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Bridging underwriting

Journalist: Anna Sagar, Mortgage Solutions / Specialist Lending Solutions

ended 29. September 2022

Looking to speak to mortgage brokers about bridging underwriting. 

  1. What things are bridging underwriters are looking for/what is their process is?
  2. What are the biggest mistakes in applications or best things to put in application?
  3. How different is the underwriting process to other kind of lending?

1 responses from the Newspage community

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Editor
Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Bridging underwriters are looking at the security property, the amount of equity available and the repayment strategy, which is the plan you put in place when you apply for the bridging loan in order to repay this at the end of the term. This may be a sale of a property or a refinance with a new lender. If you are considering taking a bridging loan a smaller loan to value will result in a smoother application and the lower the risk the lower the rate. The biggest mistakes out there and the lack of a clear exit and as most bridging loans run for a short term eg. 12 months it is something that should be planned ahead. The underwriting process is traditionally quicker than a standard mortgage because most of the questions focus on the ability for the applicant to repay the debt within the agreed time rather than testing the borrowing against income. Speaking with a specialist is key to ensuring a smooth transaction.