The case in brief
- Client: UK national
- Property type: Residential purchase- Bridging finance
- Property value: £700,00
- Loan Amount: £560,000
- LTV: 80%
Finding and funding a dream property does not always fit with an individual’s current personal and financial situation. Often, money from inheritance or a divorce has been earmarked for a new property purchase but the process for accessing this money can be long and arduous. This was the case for our client, who was awaiting a lump sum payment from her divorce settlement in order to finance her dream property.
Our client
Our client was a UK national who had recently gone through a divorce. She was due to receive a cash lump sum from the divorce settlement, but it was likely to take up to 12 months to process. In the interim, she had found a dream property which she knew would be quickly sold in the current market without action on her behalf.
Her intention was to acquire a short term bridging loan, using the smallest possible deposit amount. The client also wanted to service the bridging loan debt on a monthly basis rather than rolling up the loan to pay the interest at the end of the term.
Our solution
We were able to source a private bridging loan lender who was comfortable with our client’s situation. One of the primary reasons for partnering with this lender was the fact that they could move quickly on the bridging loan application and therefore help to secure the client’s dream property. Additionally, the lender offered a high bridging loan to value of 80%, allowing the client to put down a minimal deposit.
Another key factor when acquiring the loan was that the bridging loan lender was able to offer no minimum term, with the client able to repay the bridging loan as soon as she had received her divorce lump sum. This meant that no unnecessary interest payments would be accrued once the bridging loan had been settled.
Ultimately, we secured a £560,000 gross bridging loan for the client against a property value of £700,000 at a highly competitive rate.
This case study highlights the importance of utilising an expert bridging loans broker who can act quickly should the situation warrant it. The property market is currently booming and some properties are sold within a very short space of time after going on to the market. Our close relationships with private lenders ensures that the short term loans process moves quickly and efficiently.
You can learn more about our services or speak to a broker today.