The client had already purchased a share in a business and needed to buy the second share by a pre-set date. Her original funding plan had been delayed and needed to source the finance required before the looming deadline. As well as her main home, she also owned a holiday property.
Applying our insight
We reviewed this case and secured a bridging loan with a lender which has a strong reputation for being able to provide finance quickly. To speed things up even more, the lender advised it would be easier to carry out the bridge on the client’s holiday home.
The bridge completed quickly, and the client received her funds within the deadline, which allowed her to purchase the second share in the company. She was able to exit the bridge once her original source of funding came through.
What we said
When bridging finance could be the best solution for your clients
Bridging finance can be used when a client is looking to:
- Securing a property before completing the sale of your existing property
- Broken sale chains – bridging the gap between purchases
- Auction purchases – quick completion timescales
- Renovation – a traditional mortgage may not be available until the works are complete.
- Below market value – enabling you to possibly take advantage of the open market value of the property
- Un-mortgageable properties, for example if there’s no kitchen or bathroom
- Refurbishment projects to sell or let