Bridging Loan To Pay Off 2 Buy To Let Mortgages & Buy New Home In Hertfordshire

When your perfect property comes onto the market, you may think because your capital is tied up in an existing property you are not able to act. This is where bridging finance can be so useful.

The Scenario:

We were approached by a client who owned two rental properties: one in London and one in Plymouth.

The opportunity had arisen unexpectedly for her to buy her current home, which she rented in Hertfordshire. As the current tenant, she was the favoured buyer, but she needed to act quickly to prevent her landlord from putting the house for sale on the open market.

The Solution:

Our client needed a short-term loan to pay off the remaining balances of the two BTL mortgages and buy the house she was living in. The combined value of the three properties was £1,598,000. The sale of the BTLs would be the exit from the bridging loan. 

The client had some historic credit issues (CCJs) which be an issue for most lenders. We helped to have these removed from her credit record and arranged a competitive short term bridging loan for £1,118,600 which repaid the BTLs with sufficient funds left to purchase the Hertfordshire home.

The loan was negotiated for 12 months to give our client sufficient time to sell both rental properties and exit the bridging loan. 

In a similar situation? Please call our team on 0117 959 5094 or complete our enquiry form.