According to the Prudential, almost 2.5 million ‘last time buyers’, those being current home owners over the age of 55, plan to downsize their homes. Our own anecdotal experience supports the Prudential’s finding as to the reasons why people downsize. These include having too much space, the convenience of running a smaller home, changes in personal circumstances (such as the loss of a partner), but also one that was not mentioned, which is moving to be closer to children and/or grandchildren. Bridging loans can often be employed to assist such borrowers where time is of the essence, in securing their new property before their existing home is sold.
In one recent case our 84 year old borrower wished to purchase a mobile home on the same site as her son. Having an opportunity to purchase on this site was rare, and her home, although on the market, had not yet sold. With some urgency required to secure the new property a United Trust Bank bridging loan provided the solution.
Head of Bridging at United Trust Bank Alan Margolis commented “Downsizing is one of the consistent uses of our bridging loans. I believe this is the first time a customer has used a bridging loan to downsize to a mobile home, but we were very pleased to assist. The Prudential’s findings confirm my view that downsizing will remain a steady use of short term bridging loans for years to come.”
Loan Amount: £150,600