The client: Our client wanted to purchase a new-build home in the Home Counties with a timeline in place to exchange and complete. She currently lives in a mortgage-free property in central London which has been on the market for a while but not sold. Our client was worried that she was going to miss out on the new property, which she was keen to purchase, and approached us to see whether we could help.

Given the tight time frame, we identified that a short-term regulated bridging loan was necessary, as this could be arranged quickly and enable the client to proceed to purchase the new-build property. The bridging loan would then be repaid once the client’s original property had been sold, along with the interest accumulated during the loan.

Key requirements:-
  • A lender prepared to lend a large sum to cover the balance of the purchase of the new property and cover the stamp duty costs.
  • A lender willing to let the interest roll up during the term of the loan to be repaid on the sale of the property.
After sourcing the mortgage markets, we identified a bridging lender who agreed to lend the full amount required at a competitive rate.

The application process:
To support the mortgage application, the client provided evidence of her income and identity. We were delighted to inform her that a lender had issued a formal offer for the full amount requested on an interest-only basis with interest rolling up during the term.
  • Property value: £4.1m
  • Loan amount: £1.8m
  • LTV: 45%
  • Term: 12 months
  • Rate: 0.68% per month
  • Lender fee: £43,386 added to the loan.
  • Monthly payment: £0