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Bridging Loan For Property Purchase With Gifted Funds

£70k Brighton

By acting quickly, we resolved a lack of funds through a bridging solution for our client to finance their son’s property purchase, after their initial plan proved too slow.

The Scenario

Before our client approached us, they had planned to take out a mortgage against one of their two BTL properties, through which they hoped to finance the purchase of their son’s home. 

They needed to raise funds of £70k to help with his deposit, and the property had already had an offer accepted on the home from their son. 

They were under a deadline, yet didn’t have the required funds to hand – and the mortgage on the buy to let was to be proven too slow in order to raise the necessary funds in time.

Here’s the situation:

· They had two BTL properties located in Eastbourne, valued at £350k and £450k

· The mortgage was to be their exit strategy, which would be on one of the properties.

· With their son’s offer accepted for his prospective home, they were now under a tighter deadline to raise the funds.

With this information in mind, and with the potential for their son to lose his opportunity to purchase, our clients needed an alternative solution that could meet this looming deadline.

The Solution

When they came to us, we suggested that they get a bridge loan of £70k – the total amount need to help with the deposit. In doing so, they could secure the loan against their two BTL properties while the mortgage application slowly ticked on.

Here’s what we did for them:

· Our broker got in touch with a suitable lender; they were the cheapest, and we knew they could deliver quickly to meet our client’s deadline.

· We got an online valuation organised for the two properties, instead of a lengthy process of a physical valuation and survey. This sped up the application for the bridge.

· After the valuations, we were able to secure from the lender a suitable product – with a rate of 0.41%, and a fixed term of 12 months. Moreover, with no early repayment fees to worry about.

· From application to completion, we managed to secure the £70k within 5 weeks.

Despite the client's desire to help their son, they may have lost their chance without our broker's expert advice. In suggesting the right bridge loan, we found a more suitable option in light of the slow financing speed of their BTL mortgage.

Had they not approached us, their son may have missed out on his dream property. Throughout the entire process, we stayed in close contact with the clients. And we explained, answered their questions, and provided updates continuously in order to help ease the stress of a tight deadline and their initial plan falling through.

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