Resolving Complex Debt Issues with a Bridging Loan

Bridging loans are often the perfect solution for clients facing unique financial challenges. This case highlights how we assisted a client in clearing longstanding debts and paving the way for a fresh start amidst complex family dynamics.

The Scenario

Our client owned a semi-detached farmhouse in Upminster, valued at £900,000 and unencumbered.

However, over the previous five years he had accrued significant debts while acting as his mother’s primary carer, including personal loans, loans from friends and family, and solicitor fees linked to splitting the title of a family farm.

The need to raise £135,000 was pressing. The funds were vital not only to clear his debts but also to enable the sale of the property as part of a plan to move on. However, there were unique challenges:

• Adverse credit history: During the five years he had spent as his mother’s primary carer before her passing, he missed various payments, resulting in a blemished credit record.
  
  
• Title complications: The land housed three properties owned by the client, his father, and his brother. While the client and his father wanted to sell and move on, his brother was determined to stay, requiring the property titles to be split—a process nearing completion when the client contacted us.
  
  
• Repair clauses: There were legal stipulations regarding fencing on the property, adding another layer of complexity.

The Challenges

The primary hurdles were:

• Navigating a limited pool of lenders due to the regulated nature of the inquiry.
• Identifying a lender willing to take a lenient, story-driven approach to adverse credit.
• Managing a convoluted legal situation involving title splits and familial disagreements.

The Solution

Our proactive approach ensured that the lender understood the client’s broader story and saw beyond his credit history.

The Outcome

The process took three months from start to completion. With the funds secured, the client was able to clear his debts, finalise the title split, and prepare the property for sale.

The resolution gave him the financial breathing room to move forward, and also prevented further credit deterioration.