Bridging Finance

We assisted a client in securing bridging finance by leveraging the value of two properties, enabling them to raise the required funds quickly for renovation work. By combining the properties, we achieved a higher loan-to-value ratio and a lower interest rate, meeting the client's needs for a short-term solution.

2/28/20241 min read

a wooden block spelling property on a wooden table
a wooden block spelling property on a wooden table

A client had an initial enquiry for bridging finance. The client had a residential property in London valued at £760,000.00 with a mortgage of £300,000.00

He wanted to raise £200,000.00 as a second charge via bridging finance as he needs the funds quickly to do work on another residential.

As this loan is a second charge regulated transaction the loan to value is limited to 60% at a rate of 0.8% it did not allow the client to raise the amount he needed.

Contact us today to discuss Bridging Loans and how we can assist you.

After further discussion with the client, we discovered that the second property had a value of £3,000,000 and a mortgage of £470,000.00. We were able to secure one loan against both properties, giving an aggregate 27% loan to value for the full amount the client needed and reducing the rate to 0.75%.

This suited the clients’ needs as the exit strategy was to sell the London property and only needed the funds for a short term and allowed the client to complete in a 2 week period.

Note: Current Max LTVs for Bridging Finance for 1st charge bridges are 75% but lower for 2nd charge bridges, typically 60%.

If you have any questions relating to Residential Mortgage, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on 0113 8730 740. Alternatively, please complete this short online form and one of our Advisors will call you right back.