Bridging loan secures a purchase with a two week drop dead date
Our borrowers approached us in the middle of the month with an urgent requirement for short term bridging finance. They had been looking for some time to purchase a property near their children and had very recently come across a completed new build house for sale.
The builder wanted the sale on their books by the end of the month and was offering a significant financial incentive to complete a sale by the 30th.
Our borrowers had intended to finance the balance of any purchase price by way of the net sale proceeds of their home, which was on the market, but for which they did not have a purchaser. The rushed requirement to complete meant that this was no longer viable.
Accordingly, they approached United Trust Bank with approximately just two weeks to complete the purchase by the end of month deadline.
Utilising a regulated UTB bridging loan, the transaction completed in time, with the Bank taking first charges over the borrowers’ existing home, and also the new property being purchased.
United Trust Bank’s Head of Bridging, Alan Margolis, commented: “This was a straightforward proposition, but everyone was well aware that there was an absolute deadline that had to be adhered to and not much time to iron out any issues if anything untoward happened. Fortunately, the only real challenge was finding a valuer who could assess the rural property within the tight timescales. In fact this wasn’t possible, but given the low loan to value, we were willing to accept a valuation on the borrowers’ current residence only.”
Loan Amount: £486K