Background
Charles and Hannah, a professional couple in their late 30s, are both schoolteachers with a strong joint income of £76,000 per year. They had the opportunity to purchase their “forever home” in a small village just outside Leeds. The property was being sold to them by a close friend, with an agreed purchase price of £450,000, despite a recent RICS valuation of £525,000.
The vendor required an immediate sale due to the need to relocate south to care for elderly parents. As friends, they offered the property at a reduced price on the understanding that Charles and Hannah could move quickly.
The Challenge
Speed was the key driver in this case. The couple’s existing home was only just being listed on the open market with an anticipated sale price of £350,000, but they had an outstanding mortgage of £75,000. They needed to move quickly to secure the purchase before the vendor sought alternative buyers.
Traditional mortgage processes could not match the timeline, so a bridging loan solution was required.
The Solution
A bridging facility was arranged to cover the full purchase price of £450,000, secured against:
- First charge: The new property being purchased
- Second charge: Their current residence
Exit Strategy
The bridging loan would be repaid through a two-stage exit plan:
- Sale of their current home to release equity
- Refinancing the remaining balance of £175,000 onto a standard residential mortgage (with affordability easily achievable on their joint income).
Our recent blog, ‘What you need to know about bridging loan exit strategies‘ should also be useful to read.
Loan Terms
- Amount: £450,000
- Interest Rate: 0.67% per month
- Lender completion target: 10 working days
- Security: Dual charge across old and new properties
Electronic valuations were successfully completed, enabling the lender to issue an offer within 4 working days of the initial enquiry.
Outcome
From first enquiry to offer, the process took just 4 working days. Funding is scheduled within 14 working days total, allowing Charles and Hannah to:
- Secure their dream home at a reduced price
- Move in line with the vendor’s urgent timescales
- Transition smoothly from bridging finance to a long-term mortgage solution
Why Professional Advice Matters – With Steel River Bridging Loans
Bridging loans are specialist financial products that can unlock opportunities when time is of the essence. However, they also carry risks if not structured correctly. At Steel River Bridging Loans, we ensure clients receive the professional advice needed to secure the right product, on the right terms, with a clear and achievable exit strategy.
In this case, our advice gave Charles and Hannah the confidence to proceed quickly, knowing that:
- We sourced the right lender – one able to provide competitive rates and complete within their tight timescale.
- We structured the deal securely – with dual charges and a realistic repayment plan through property sale and mortgage refinancing.
- We protected their interests – guiding them through a regulated process with full transparency on costs and implications.
- We simplified complexity – handling valuations, lender negotiations, and paperwork so they could focus on their move.
Without professional advice, borrowers may be exposed to unsuitable products, hidden costs, or difficulties exiting the loan. Steel River Bridging Loans ensures that speed never comes at the expense of long-term financial security.
Key Takeaway
This case demonstrates how a regulated bridging loan, combined with expert advice from Steel River Bridging Loans, can deliver the speed and certainty required to secure a dream property. For Charles and Hannah, it meant moving quickly, securing their forever home, and progressing with confidence.
