Short-Term Lending for Your Dream Home

Friday November 23, 2018

An innovative approach to short-term lending secures our clients their dream home

Are you looking for a short-term loan to secure your dream property? We have the banking contacts to provide a tailored solution where other lenders may not be able to help. To discuss this or any other large or complex mortgage case, please contact us on 020 7519 4984 or email us.

Case Profile

Our clients were retirees with several investment properties, who had seen their dream home come onto the market. As a unique, listed 14th century farmhouse, they knew they needed to act fast to secure the property and they had put down a deposit with capital released from a previous property sale. However, the bulk of their equity was tied up in their portfolio of investment properties, which were all mortgaged and would take time to sell.

The couple were looking to raise 55% of the purchase price of their dream home and their first thought was to look to a short-term, bridging loan. However, this would not have passed affordability criteria based on their retirement income. Additionally, a bridging loan could have become very costly with set up and renewal fees, and high interest rates. The clients had no guarantee on how long it would take to sell their investment properties and we wouldn’t suggest entering into this type of agreement without a finite timeline.


Our specialist advisers scoured the market for the options available and recommended a two-year, interest only mortgage with no early repayment charges. The lender acknowledged that the mortgage was unaffordable on retirement income alone and therefore an additional fund equating to two years’ worth of interest payments was lent as an additional sum. This was then placed in a serviced interest account from which the lender would take the mortgage payments.

This solution provided the lender the security they needed to offer our clients the loan, and it provided our clients with the time they needed to sell their investment properties at the right price. Most importantly, it meant they could secure their dream home and, once their capital is released from their property portfolio, they will own it outright and unencumbered.

Deal Highlights

Loan amount:£325,000
APRC:Overall cost for comparison 7.0% APRC representative variable
Term:2 years
Type:Interest only
Loan purpose:Purchase
Lender’s arrangement fee:1.5%
Early repayment charge: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.

Please note that this specific deal may not be available to Рor suitable for Рall 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.

Overall cost for comparison 7.0% APRC representative variable based on 24 payments over  2 years at the lenders variable rate, currently 2.89% with a loading of 2.10% giving a current payable rate of 4.99%. Because all, or part of, the mortgage is currently, or will revert to a variable interest rate mortgage, the actual APRC could be different from this APRC and the payments could increase, if the interest rate of the loan changes. For example, if the interest rate rose to 10%, the APRC could increase to 12.50%. The actual rate available will depend on your circumstances. Ask for a personalised illustration.

Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.

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Your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Changes in the exchange rate may increase the sterling equivalent of your debt. You may have to pay an early repayment charge to your existing lender if you remortgage. Think carefully before securing any other debts against your home. is a trading name of Ltd, Aegon House, Ground Floor Suite, 13 Lanark Square, London, E14 9QD authorised and regulated by the Financial Conduct Authority (FCA). Our FCA registration number is 302228 and can be viewed by visiting the FCA website: The FCA does not regulate tax advice or some aspects of commercial, buy to let, overseas mortgages, bridging finance, finance and asset lending. Ltd is a licensed credit broker, and not a lender. Ltd Registered in England and Wales No: 5070990 Registered Address: As above. The guidance and advice contained within the website are subject to the UK regulatory regime and is primarily targeted at UK customers. Calls may be recorded for training and monitoring.
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