Loan raised: £1.085m
Area: South West
Client Profile
Our client approached us with the intention of purchasing a second residential property, which they planned to renovate and eventually move into. They wished to retain their current home during the renovation period, meaning they needed to raise funds for both the purchase and the renovation works.
At the time, the client did not have a mortgage on their existing property but did have a private charge in place. . The client intended to pay off this charge in the future.
The Challenge
The client needed to move quickly, as the vendor was ready to proceed with the sale. Having recently switched from another broker, we were brought in at a late stage, which left us with limited time to arrange suitable finance. One of the main challenges was the client’s relatively high monthly expenditure, which included two leased vehicles. This significantly impacted affordability assessments. Additionally, the client was unaware of potential savings, such as the single person council tax discount, which they were eligible for after their daughter moved out. As a single applicant, demonstrating affordability was more difficult, and purchasing a second residential property meant they would also incur the higher stamp duty surcharge, applicable when owning two properties simultaneously.
Our Solution
Given the time constraints and the client’s financial profile, we recommended a bridging loan as the most suitable solution. This allowed:
- Both the current and new property to be used as security.
- Funds to be raised quickly for the purchase and renovation.
- Flexibility for the client to complete renovations and sell their existing home at a later date.
Once the renovations are complete and the original property is sold, we plan to refinance the bridging loan into a standard residential mortgage.
We also guided the client on improving their financial profile, including reducing credit card balances and exploring the council tax discount, to support future affordability assessments.
The Outcome
The bridging loan was secured in time, enabling the client to proceed confidently with the purchase. Renovation works on the new property are now underway. Throughout the process, the client became more informed about managing personal finances and how expenditure can significantly impact borrowing capacity. We are now preparing for the next phase, which involves refinancing the bridging loan into a long-term residential mortgage once the original property is sold. Additionally, the client is eligible to reclaim the higher stamp duty surcharge, provided the sale of their existing home is completed within 36 months.
Ready to Take the Next Step?
Whether you’re planning to purchase a second home, renovate a property, or navigate complex financial circumstances, we’re here to help. Our expert team can guide you through tailored solutions like bridging finance, refinancing, and more—ensuring you move forward with confidence and clarity.
📞Get in touch today to discuss your goals and explore the best options for your unique situation.