Residential Bridging Loans

Residential bridging loans can be used for a number of reasons; commonly for house buyers whose chain has let them down and they need to complete on a new property before they sell their old house. House renovations and overseas purchases are also another common use.

Here are some success examples:

Bridging Loan when a Buyer Pulls Out

We had clients that were moving house. On exchange of their purchase property, they paid a £20,000 deposit. The sale on their home should have gone through the same day as their purchase, giving them sufficient funds to complete the transaction. Their buyers pulled out the week of completion, which meant our clients would lose the £20,000 deposit, as they were unable to obtain a mortgage on the purchase unless the sale had completed.

We were approached early on the Tuesday morning to provide a fast bridging loan facility. Our lawyers were instructed that day, we agreed to take a first charge on the property they were buying, and a second charge over the property they were selling.

We completed the transaction by 3pm on the Thursday! Saving our clients from losing £20,000.

Bridging Loans for Overseas Property

This is a growing area where clients are taking advantage of emerging markets and affordable property prices, particularly for pension investments or holiday homes.

These markets are dynamic and completions need to be quick. Many overseas properties are new developments and are purchased through stage payments, a situation which lends itself perfectly to bridging finance as short timescales are usually given. We often finance overseas property transactions by securing on properties in the UK whether by first or second charges.