Getting A Bridging Loan
Getting A Bridging Loan
Our client, Mr Christofi initially approached “Mortgage Guardian” about a getting a bridging loan because he needed guidance on the various types of bridging loans available as well as the rates and terms associated with this type of finance. He needed a short term finance option which a bridging loan would provide to purchase a house in Reading, Berkshire. After finding out more about the client’s needs, our adviser agreed that a bridging loan would be the most suitable finance facility to quickly purchase a property that he had agreed to buy at well under market value.
The vendor was finding it difficult to sell the property to buyers requiring a mortgage due to quite heavy retention’s being placed on the property by various mainstream lenders. Our client had to move quick to get the funds to the vendor within a week. A mortgage would take too long and retention’s would most likely be placed on the property as the roof needed repair and an RSJ needed placing under the chimney stack.
A bridging loan was the best solution for the client as he could use an investment property he owns outright as security. Some bridging finance can be arranged the same day but this client was not in such a hurry so we were able to provide the lowest rate and the best terms.
The paperwork was completed straightaway and funds were sent to the client within a few days. The client borrowed enough to purchase the property and some of his own funds were used to make the repairs to the property.
The property was initially bought as another investment property but the client decided to make the necessary repairs and sell it on for a profit. The estate agent marketed the property whilst the repairs were taking place. This time the new buyers could take out a mortgage without the worry of a retention being placed on the property by the lender.
Alternative options to a bridging loan was explored.
- A mortgage would probably lead the way to a retention being placed on the property.
- A remortgage would not complete quick enough.
- A secured loan would not raise enough funds.
- A guarantor mortgage was not viable for the client as was any form of equity release.
You may find the following links interesting:
Get The Most Suitable Bridging Loan for Your Needs
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