This case demonstrates how a bridging loan enabled a client to take possession of an inherited property, pay off the existing mortgage, repair and refurbish the property and gain planning permission to build a new property for subsequent sale.
Our commercial specialists can arrange bridging finance at competitive rates due to their extensive connections and experience in negotiating with lenders.
A client recently inherited a cottage which had an existing equity release mortgage secured against it. The property had a significant amount of land surrounding it and the client wanted to split the land into 2 plots, apply for planning permission and build a new property which would then be sold.
The client’s mortgage broker attempted to arrange buy to let finance but the banks were reluctant to lend due to the client’s lack of income and because the property had structural damage.
The broker approached a commercial mortgage manager at Largemortgageloans.com, who has extensive experience and connections in bridging finance. A bridging loan was arranged to repay the existing equity release mortgage, repair the structural damage on the cottage and fund the fees for planning permission. In addition, the client had enough capital left over to fully refurbish the cottage. Our commercial manager negotiated a bespoke rate of 1.2% per month over a 12 month period, with no early repayment charges.
|Loan amount:||£245,000 (62% LTV on a £395,000 valuation)|
|Rate:||1.2%¹ per month|
|Arrangement fee:||2% of loan amount|
|Early repayment charges:||None|
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
¹ Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
Largemortgageloans.com is a trading name of Largemortgageloans.com Ltd. A fee of up to 1% of the mortgage amount is payable, of this 25% is payable on application and the remainder on completion, e.g. on a mortgage of £100,000 the fee would be £1,000 of which £250 would be payable on application. The precise amount will depend on your circumstances.
Commercial mortgages are not regulated by the Financial Services Authority.