Pension provides part of the exit for this house purchase bridge

Our borrower is an international sports personality who spends much of their time abroad but wanted to purchase a UK residence for when they were “home”.

The loan was secured by way of a first charge on the property being purchased, but what was slightly unusual about this case is the exit.

There is often a misconception that bridging loans have to be repaid by the sale of or re-mortgaging of the security property. The reality is that bridging loan repayment strategies are as varied as the loans themselves. What matters is that the exit must be viable and realistic.

In this case, our borrower has built up a substantial pension fund, and accordingly, the exit for their bridging loan is to be a combination of divested pension monies and a mortgage. Another challenge was that the borrower was abroad throughout the entire period, but with the deft assistance of their broker, the loan completed on time and the house purchased.

LTV: 70%

Loan Amount: £447,900