Easy bridging finance for a downsize bungalow in Somerset

Yes, we can do difficult: the big numbers and complicated financial backgrounds, the tricky properties and the three-day turnarounds. But bridge finance can also be a very straightforward funding solution for older clients who are downsizing. And this was a textbook case.

The Scenario

Our author client was retirement planning with a downsize from a house in Shepton Mallet to a bungalow in a popular village four miles to the south.

She’d found the place she wanted to move to, on the market for a discounted price to secure a quick sale. She knew there wouldn’t be much coming onto the market and wanted to secure the purchase.

It was a straightforward regulated bridging loan to arrange: our client had no debts and no outstanding mortgage, and the sale of her house would leave her with £50K+ in hand after the purchase was completed. But she wanted to borrow 100% of the purchase price, so we needed to make the numbers work.  

The Solution

The lender we sourced for her was confident she could execute her exit plan: selling her house in Shepton within 12 months. To achieve the bridging loan amount she needed we secured her borrowing against both the property she was buying and the house she was selling. And an LTV of less than 50% against each of them delivered a market-leading rate of 0.49%.

Securing the loan against both properties has risk implications, but the exit looked achievable. And with the lender waiving a valuation on the purchase property costs were kept to a minimum – and the purchase could proceed.

In a similar situation? Call our mortgage team on 0117 959 5094 or use our bridging loan calculator to get an indicative quote