Bridging Loan Secured Against UK Property to Buy Abroad

Although bridging loans cannot be secured against overseas property, they can be used to buy it, as long as you have sufficient property in the UK for security. 

Bridging is particularly useful for those looking to move abroad or secure a holiday home overseas under a tight deadline, while they wait for longer term funding to come through.

The Scenario 

Our client was moving to Malaga, Spain, to live near her daughter who had moved out there a few years prior.

She had identified a £230k flat that ticked all the boxes: location, size, amenities, and it had the potential to be her home for decades to come.  

To fund the purchase, she was selling her main residence in Edinburgh – a £965k detached property with no mortgage debt. However, it being a unique, high value property, it was projected to take a while to sell – and the Malaga flat was under hot competition and likely to sell fast.  

The Solution 

Although it was feasible for the clients’ property sale to go through in time to secure the Spanish property, it was very unlikely.

The client could also have waited until her property had sold, perhaps renting in Spain throughout the sale, to then use the proceeds on a different property on the market at that time. 

However, that would have its own expenses and logistical hurdles, and with the perfect property identified now, just walking distance from her daughter, the client wanted to secure it. 

Yes, there would be additional questions from the lender: purchase price, property details, longer term plans and context etc., but our clients’ application was attractive, so we could negotiate lower rates and had a choice of options to present.  

A few complications did arise during the application stage: 

While this incurs a small extra cost and can slow things down, our broker ensured to chase through both sets of solicitors throughout the process to ensure everyone was on the same page at all times. 

All in all, the bridging offer was secured in just 12 days, solidifying our client's buying position within two weeks, and the funds cleared in just 36 days for her to secure her new home.