Case Study – Bridging Loan (3 minute read)

What is a bridging loan?

A bridging loan is a short-term secured loan that you’ll usually have to pay off within 12 months, though the term can be as short as a week or two.

They allow you to access funds while you’re waiting on cash elsewhere and are designed to be paid off as soon as that money becomes available.

What are bridging loans used for?

Bridging loans are typically used for property-related purchases – this can include:

• Buying a propertybefore selling your current home
• Fixing a broken property chain after a sale falls through
• Buying a property at auctionwhen you need quick access to cash
• Investing in a buy-to-let property
• Renovation projects

What we did?

A Less Stress customer referred a friend who’d bought a 3-bed semi-detached property in Manchester at auction. Due to the nature of the purchase, the terms of sale required a quick turnaround.

Our team spoke with the new customer and established their needs through a ‘fact-find’ exercise. We identified the best lender for the deal, packaged and submitted the application. The Less Stress case progression team worked closely with the buyer’s and bank’s solicitors to ensure a quick turnaround whilst keeping the buyer updated at every step.

The Outcome

Less Stress Mortgages submitted the application, arranged the property valuation, obtained the mortgage offer and completed within 21 days. Needless to say, the customer was delighted!

Bridging loans are one of the many services that Less Stress Mortgages can help with. For further information please contact us….