UTB’s Bridging division was approached by Clever Lending to assist their customers with the purchase of their next home.
Having travelled for the last three years but now returning to reside once again in the UK, the customers were purchasing a property for £395,000 and were using £220,000 from the sale of their previous home, sold in 2020, to provide the majority of the funds required. The customers therefor needed to borrow a further £175,000 net to make up the balance of the funds needed to complete the purchase.
UTB were offered a first charge over the couple’s new home with the proposed exit coming from the tax-free lump sum one of the borrowers would be eligible to access from their substantial pension savings a few months after completing the purchase.
The customer was able to provide a current valuation of their pension fund and evidence that the 25% they were able to withdraw tax-free would be more than sufficient to repay the bridging loan, interest and charges.
Satisfied that the exit was viable, UTB agreed to provide the £175,000 loan without delay.
|Regulated Bridging Loan
|Purchase of new main residence
|• Introduced by Clever Lending
• Proposed exit will be from borrower’s tax free lump sum from SIPP