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The Client’s Situation
An existing client wanted to purchase their dream flat, newly listed in a sought-after location. They wanted to act as a cash buyer to strengthen their position in the bidding process. They had a cash deposit of £100,000 but required additional funds to complete the purchase.
The Challenge
Because the property was in a competitive market and likely to be snapped up quickly, the client needed funding that could be arranged rapidly. They could not rely solely on the sale of their current main residence to finance the purchase. They needed a solution that allowed them to move quickly, give the vendor confidence, and still manage the repaying of the finance once their existing property sold.
Our Solution
We sourced a regulated bridging loan, enabling the client to raise funds quickly while using their current main residence (which was unencumbered) as additional security. The bridging loan term was set at 12 months, with no early repayment charges, giving them time to market and sell their existing home. The combined security of the current flat and the purchase flat totalled £815,000, allowing sufficient borrowing. On this basis, we secured the loan of £350,000 at a loan-to-value of 42%. The rate achieved was 0.45% fixed per month (equivalent to ~5.4% per annum). The lender also accepted an automatic valuation on both properties, thus avoiding upfront valuation fees of £900.
The Result
The client was able to raise the necessary £350,000 quickly, complete the purchase as effectively a cash buyer, and retain flexibility. The bridging loan term of 12 months with no early repayment charges allowed the client to sell their existing home at pace without pressure. The speedy funding and cost savings (on valuation fees) gave the client an immediate competitive advantage.
How We Can Help You
If you’re seeking to purchase a property quickly and need short-term finance to complete within tight deadlines, we can assist. We specialise in regulated bridging solutions that give you the flexibility to act fast, use your current assets for security, and repay once your longer-term strategy is in place.
