£460,000 bridging loan to purchase development opportunity
Our clients wanted to raise funds quickly to buy and renovate a property in need of substantial modernisation.
There was a lot of competition to purchase the development opportunity near their home. It was competitively priced as it had structural issues that meant the property was uninhabitable.
Case details and solution
Trinity advised the clients that the quickest way to purchase a property in need of substantial development was by taking a bridging loan.
Bridging rates can be particularly expensive although we found a lender charging a competitive rate.
The client had permission from his mum to arrange the finance against her home and the bridging loan was secured within ten days.
Once the work on
Property: House valued at £2 million and located in East London.
Bridging loan amount and rate: £460,000 (including setup fees) priced at 0.65% each month.
Lenders arrangement fee: 2% of the mortgage amount and added to the loan.
APR: The overall cost for comparison is 11.1%.
Term: 12 months.
Repayment type: Interest was rolled up so the client did not have to make any monthly repayments. This was added to loan amount.
Loan-to-value: Approximately 23% of the property value.
Early repayment charge: None.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
If you would like help to secure a fast bridging loan, call Trinity on 020 7016 0790. You can also email: enquiries@trinityfinancialgroup.co.uk
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