Bridging finance to fund deposit for purchase

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THE SCENARIO

OUR SOLUTION Fortunately, my client had another asset in the background—a holiday home in a beautiful Welsh seaside resort. This property was valued at approximately £220,000, so I proposed to my client that we used a bridging finance solution secured against his holiday home to generate the rest of the money needed for the deposit. This was an unusual bridging finance solution. Typically, holiday homes are harder to raise finance on, so we would not usually go down this route. However, because speed was important, I felt it would be quicker to do this than trying to arrange a second charge loan. When trying to put a second charge loan in place, it’s necessary to receive the permission of the first charge lender—something which can take up to 30 days. I felt it would be faster to arrange the facility with a fast-moving bridging lender. I therefore approached a bridging lender that I know is well deserving of their reputation for speed. I negotiated a £100,000 bridging finance facility for my client, at a rate of 0.99% a month for 12 months.]]>