A client had an initial enquiry for bridging finance. The client had a residential property in London valued at £760,000.00 with a mortgage of £300,000.00
He wanted to raise £200,000.00 as a second charge via bridging finance as he needs the funds quickly to do work on another residential.
As this loan is a second charge regulated transaction the loan to value is limited to 60% at a rate of 0.8% it did not allow the client to raise the amount he needed.
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After further discussion with the client, we discovered that the second property had a value of £3,000,000 and a mortgage of £470,000.00. We were able to secure one loan against both properties, giving an aggregate 27% loan to value for the full amount the client needed and reducing the rate to 0.75%.
This suited the clients’ needs as the exit strategy was to sell the London property and only needed the funds for a short term and allowed the client to complete in a 2 week period.
Note: Current Max LTVs for Bridging Finance for 1st charge bridges are 75% but lower for 2nd charge bridges, typically 60%.
To know more and speak to one of our Bridging Finance Experts, call us now on 03303 112 646. You can also fill in this short online form to get started. Our team of Bridging Loan Experts will get back to you straight away.