Client Profile:
Originally from London, our client is a consultant at a North East hospital. He had accepted a new role at James Cook University Hospital in Teesside, necessitating an urgent move from his family home in North London. With his new position already underway, Dr Amir was temporarily residing in a B&B in the North East, while his family remained in London.
The Objective
The family home was on the market for £695,000, with an outstanding mortgage of £250,000. Dr Amir had identified a new property in Stokesley valued at £595,000, and had £100,000 in personal savings to contribute toward the purchase.
Given the need for a fast completion and the fact that the sale of the North London property had not yet concluded, a bridging loan solution was urgently required.
Our Solution
We recommended a regulated bridging loan, secured against both the existing and new properties, to enable a swift purchase while minimising borrowing costs. This structure allowed us to keep the Loan-to-Value (LTV) low and secure a competitive rate.
Loan Overview
Loan Amount: £495,000
Security:
- Purchase Property: £595,000
- Existing Property (North London): £695,000
- Existing Mortgage: £250,000
- Combined Equity: £1,040,000
- Effective LTV: 47.59%
- Term: 12-month regulated bridge
- Interest Rate: 0.69% per month
- Exit Fee: None
- Repayment Strategy:
- Sale of North London property
- Small residential mortgage to clear any remaining balance
The Result:
- Time to Completion: 4 weeks
- Family Relocation Date: Friday, 15th August
- Client Experience: Dr Amir was extremely responsive and provided all documentation promptly. He followed our recommendation to use a reputable solicitor, which contributed significantly to the smooth execution of the case.
If you’re looking for support on a regulated bridging loan, why not get in touch with our team?
