Large bridging loans are an important part of our offering here at largemortgageloans.com for clients who require finance on a tight timescale. The popularity of bridging loans has continued in the face of the pandemic, with figures showing that loans totalled £115.52m in Q3 of 2020. As expected, that’s down on 2019 (£180.94m) but bearing in mind that transactions sank to £79.4m in Q2 due to the national lockdown, the market has bounced back strongly in a short time period[1].
Case profile
We were recently approached by a client looking to sell their substantial buy to let London property. However, the local authorities had highlighted that the property would require sound proofing to be installed throughout the building, due to the noise coming from the public house next door.
This work required significant capital investment which the client didn’t have readily available, therefore they needed to refinance with a capital raise. To add to the complexity, the client’s income had ceased for a period of time and meeting repayments from current earned income would be a challenge. Therefore, they required a facility where the interest was ‘rolled up’ – i.e. added to the loan at the end of the term, rather than repaid monthly.
Solution
Our Associate Director Tom Foster was able to source the best priced bridging finance, allowing our client to refinance the property and pay for the works. On the successful sale of the property, the loan can be repaid, and our client will move onto their next project.
If you have a need for short-term finance, whether it’s to fund a development project or cover a period in between the purchase of one property and sale of another, we may be able to find a solution which can fit your individual requirements. Don’t hesitate to get in touch with us to find out more.
[1] https://www.propertywire.com/bridging-lending-bounces-back-after-lockdown/
