Fast Track Purchase Nottinghamshire

Client Background

Mr & Mrs are a married couple residing in Nottinghamshire. They own a mortgage-free five-bedroom barn conversion valued at £1.1 million and a mortgage-free buy-to-let property valued at £269,000.

The Scenario

The couple sought a bridging loan of £799,085.30 to facilitate the purchase of a property in a large village in Nottinghamshire, valued at £1.9 million. They had secured a £1,000,000 mortgage offer and required a bridging loan to cover the balance of funds.

The clients had made a bridging loan application through another broker, the bridging loan lender informed them that completion within their required two-week timeframe was not feasible.

The Challenges

Several obstacles complicated the loan arrangement:

• Urgency: The purchase completion deadline was two weeks.
• Previous Application Delay: Their original lender could not meet the tight timeframe.
• Higher Interest Rate Consideration: They accepted a higher rate to secure faster funding.
• Securing the Right Lender: They require a lender to meet the strict deadline while ensuring financial flexibility.

The Solution

A Fixed Fast Track Bridging Loan was arranged with the following terms:

• Loan Amount: £799,085.30
• Term: 12 months
• Repayment Strategy: Sale of the current residence
• Secured Against:
  
  • Primary Residence (Value: £1.1 million)
  • Buy-to-Let Property (Value: £269,000)
• Loan-to-Value (LTV): 58.36%

Implementation Process

The loan was processed and approved within the required timeframe through the following steps:

• Financial Review: A comprehensive assessment of the couple’s assets, liabilities, and income.
• Loan Structuring: The best possible lender was identified to meet the tight completion deadline.
• Legal and Underwriting Checks: Property valuations and credit assessments were swiftly completed.
• Loan Approval and Disbursement: The loan was successfully funded in time for the property transaction.

The Outcome

• Successful Property Acquisition: The bridging loan enabled them to complete the purchase on schedule.
• Financial Flexibility: The couple maintained financial control, effectively leveraging their assets.
• Future Planning: They minimised risk exposure by using a structured repayment plan via the sale of their primary residence.