Bridging loan enables a couple to buy and modernise their new home

Bridging loan enables a couple to buy and modernise their new home

United Trust Bank’s Bridging team were approached to assist a married couple in the purchase of a property which would become their new home.

The property was situated in a sought-after area of South London but required significant improvements. The modernisation works were scheduled to take three months and the borrowers were able to show that they had the funds on hand to complete the works.

The borrowers required a loan of c£600,000 to put towards the £800,000 purchase price with the balance being provided through a refinancing of their existing residence on to a let-to-buy mortgage. The exit of the bridging loan would be through a refinancing of the debt with a mortgage secured on the couple’s new main residence once the improvement works were complete. This was a plausible exit given the income level of the borrowers and the estimated increase in value of their new home once refurbished.

Borrower
  • Married couple
Amount
  • Circa £600k – 9-month term
Loan Type
  • Bridging loan
Location
  • South London
LTV
  • 75%
Special Features
  • High initial LTV
  • Light refurbishment works required


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