Scenario:
The client approached us after getting an offer accepted on a property. As a condition of the offer, the vendor had given our client four weeks to complete the purchase.
All of the purchase funds were coming from the equity in the current home which was on the market however a buyer had not been found.
Challenges:
The key factor in this case was the speed of transaction. Selling the current property in this timeframe was simply not possible therefore we needed a quick, short-term funding solution to raise the capital to fund the purchase.
Solution:
Understanding time was of the essence, the broker quickly sourced the most competitive option from our wide-range of specialist bridging lenders.
The lender was able to provide all of the funds required by taking a cross-charge against the property portfolio and managed to approve the mortgage, including the legal paperwork, within the timeframe required.
Key figures:
Portfolio value: £6million
Loan amount: £2million
LTV: 33%
Repayment type: Rolled up interest
Product type: Fixed for 12 months
Interest rate: 0.49%