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Case Studies

Below are some real-life case studies and common bridging loan scenarios. If you’d like to know more about how we can help with your short-term borrowing, get in touch.

Bridging loan for property developers

After her children had left home and she’d moved into a smaller property, this first-time property developer planned to convert her former family home into flats. Though she had planning permission for the conversion, she struggled to arrange property finance due to having no previous development experience.

Impressed by her drive and professionalism, we agreed to fund the project with a bridging loan. The conversion was completed on time and on budget, and the flats sold the moment they went on the market.

Bridging loan for property speculators

A client wanted to buy a vacant public house in South London, hoping to get planning consent for a residential conversion. Because there was no existing planning consent, he had been unable to arrange funding elsewhere.

We agreed with him on the likelihood of planning consent for the scheme and agreed to help him buy the property. Three months after completing the purchase, he secured planning consent for residential development and the property sold quickly and profitably.

Bridging loan within 24 hours

A client contacted us at 10 o’clock on a Thursday morning, looking to buy a property in Docklands for around £1 million. Unfortunately, his mortgage lender had let him down the day before his notice expired, as the property had both commercial and residential use. We valued the property that day, made all the pre-contract enquiries and executed the legal documents within 24 hours, ensuring the purchase was completed within the deadline.

Had we not completed the bridging loan on time, our borrower would have lost a substantial deposit and may have been sued by the seller.

Owner-occupier bridging loan

Due to a delay in selling his home, and the likelihood of not being able to move, our client asked about a bridging loan equal to 100% of the purchase price.

Fortunately, he had a relatively modest loan secured against his existing property, so we suggested a combination of a second charge on his existing house and a first charge on the new home. We made the funds available and the bridging loan was quickly repaid when he sold his old home.

This was a regulated mortgage contract. If you’re interested in a loan secured against a residential or semi-commercial property, and you or a family member will be occupying over 40%, visit our regulated bridging loans section page for further details.

Fast bridging loan for property traders

We regularly help one of our long-standing clients to buy properties at competitive prices, either through auctions or private treaty for immediate onward sale.

He likes the speed and simplicity of our bridging loan service, the absence of arrangement and redemption fees, and the fact that there are no minimum periods.

Raising capital

One client wanted to raise money quickly to inject capital into his business. He owned his commercial premises and was remortgaging to raise extra funds. However, the process was taking longer than expected, so we arranged a bridging loan within a matter of days to repay his existing loan and provide the extra funds he needed. He repaid our bridging loan a few weeks later when he completed on his long-term mortgage.

Bridging loan to buy property at property auctions

We’re experts in bridging loans for property auctions. We recently completed for a client who successfully bid for a commercial property at auction. His usual lender couldn’t provide the finance for completion in time, so he would lose his deposit. However, our quick bridging loan of £600,000 completed within three days, saved his deposit and he refinanced at a later date.

Bridging loan to break mortgage chains

Often a series of transactions stall because one party is delayed getting a mortgage or completion dates don’t coincide. Our short-term bridging loan is ideal for this, and has saved many fraught situations.

If you are looking to borrow against as a property by way of a first charge where you or any family member will use or intend to use at least 40% or more in connection with a dwelling. Please visit our regulated bridging loans section.

Bridging loan for investment buy-to-let properties

Often, borrowers wanting to buy-to-let are frustrated by long-term lenders’ requirements. Using our bridging loans, they can complete purchases quickly, install tenants, and refinance at leisure. Our bridging loans mean investors can buy derelict, unmortgageable properties, which they can refurbish before letting and securing long-term finance. Property values invariably increase once work is complete, so investors can maximise the amount of long-term funding available. This often means investors can reclaim their original capital investment, and use it to buy another property. Please note, many long-term lenders require you to own a property for at least six months before they will lend.

Discount purchase bridging loan

Having a fast, secure source of bridging loans helps borrowers negotiate cash discounts when buying properties where the seller is looking to complete fast.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.