January 28, 2021

Case study: Speedy bridging loan that saves a property purchase

Loan Type:

Bridging Loans

Loan Value:

£330,000

LTV:

70%

Loan Rate:

0.75%

Loan Term:

12 Months

 

 

The specialist finance industry exists for that exact reason, specialist cases. When the high street does not have the options available, the knowledge and breadth of options offered by this market are invaluable. This case is an example of how bridging finance can support auction purchases with ease.

The client:

An individual looking to purchase their dream home in a remote area of Exmouth. The property was for sale via auction.

Completion: 11 days

The situation:

The client current main residence was sold STC, however their buyer was going very slowly and the chain was at risk, the issue being that the client would not have cleared funds in time to buy another property.

The client had then found a property for sale via auction, however the property was in need of extensive repair and therefore unmortgageble, the client planned to undertake all works on the property himself to create his dream home. With one property unsold but the need to buy the dream auction property a bridge was needed to save this potential chain break.

The time frame was tight and the team only had 20 days to raise 90% of the purchase price to complete the transaction.

Our Solution:

This is where years of knowledge from a specialist broker really comes into its own.

We were able to use the clients existing property to raise the bridging loan required to complete the deal. Our underwriting team managed to complete full conveyancing on both assets along with 2 full valuations, in the allotted time.

Benefit:

The team at Enterprise Finance have dealt with many cases with similar requirements. Because of this, the solution was not so difficult to find. The benefit of a specialist finance distributor is the access to a much wider pool of lenders, ultimately offering more lending solutions. Speed was key in this case and the unmortgagble property required knowledge of the market to secure a lender who would offer finance.

The extensive lending pool available to a master broker like Enterprise and market experience coupled with a manual underwriting process often is the difference between a successful case and a rejection. In this instance it meant the client secured the funds required very quickly to purchase their dream home.

Result:

Since completion, the client has managed to repay the bridge by sale of their previous main residence meaning they only had to pay 2 months worth of interest and have relocated to their dream home.

Despite the potential difficulties the team were still able to secure the funds in a very quick turnaround of 11 working days from receipt of application allowing the client the required.

 

If you have a client case which could benefit from this speedy approach, we can help. From bridging loans to Second Charge mortgages - we live and breathe specialist finance and are here to make your job easier. To find out more, drop us a line or give us a call on 020 8731 5333.