Quick reactions save the day when a mortgage lender’s delay puts £895k house purchase at risk
Our customer had committed to purchase a new residential property utilising both a bridging facility from United Trust Bank and a mortgage over the property being purchased.
The bridging loan was for £575,000 and was to be secured against our customer’s existing residence with the balance of the purchase monies coming from a High Street Bank.
Approximately one week before the purchase was due to complete the customer learned that the High Street Bank could not obtain a valuation in time. We therefore agreed to increase the amount of bridging loan to £895,000 to cover 100% of the purchase price and associated costs and take additional security over the property being purchased.
Due to the time constraints, we instructed a property consultant to attend the property being purchased in order to independently confirm that the purchase price was realistic and the bridging loan completed in time for the customer to complete her purchase.
Head of Bridging, Alan Margolis, commented that “This is an excellent example of how bridging loans can be used to assist customers. What was initially a very straightforward “classic” bridging proposition turned into a very urgent crisis saving matter. The ability to quickly restructure a loan and utilise our expertise and contacts at very short notice is a hallmark of our bridging service. In the end we had a very relieved and happy customer.”
Amount of bridging loan: £895,000