
Short Term Finance from Private Bank Secures £1.6m Colchester Home at Low Interest Rate
The Scenario
Our client was looking to upgrade their family home to a £1.6m large residential property in Colchester.
But having found the perfect property for their family, they couldn’t afford to wait until their current home sold to make the purchase, or they’d risk losing out to another buyer - and they didn’t have the cash on hand to buy outright.
To avoid losing the property, they came to us for a short term property finance solution.
The Solution
This type of case is perfect for a bridging loan, and it’s a common scenario that we see on a day-to-day basis: buying a house before selling your current property.
More and more people are using bridging loans as a short term finance tool to bridge the gap between buying and selling – it's a sure-fire way to secure the home you have your hopes set on while leaving plenty of time for the sale of your current property to go through.
Our client had £800k of readily available funds to put towards the purchase, so they needed a bridging loan of £800k to reach £1.6m.
They had a £290k mortgage still outstanding on their current property, which was valued at £1.3m, and they would sell this before the end of their bridging term to repay the loan comfortably while also leaving them with £200k cash leftover.
Private Bank Connection – Better Interest Rates for High Net Worth Clients
This client owned a successful estate agency and was earning a salary of £300k per year. This qualified him as a High Net Worth Individual, making him eligible for private lending from selected private banks.
While a standard bridging loan would have cost our client over 4% in interest over his 12-month term, the private bank we used was able to offer the same loan with an interest rate under 3% as well as the option to repay monthly and accompanied by the highest quality of service.
Usually, bridging loans can only be repaid as a lump sum, but the private lender we used was able to run an affordability test against our clients’ high income to justify their monthly repayment of interest (essentially an interest-only mortgage affordability check).
The flexibility and customisation of private lending are often its main attraction. While you can achieve lower interest rates, bigger loans, and lower deposit requirements from private banks, our clients often find that the elite level of service and the flexibility of finance options set this type of finance apart from the rest and adds the most value.
Please read our full guide to High Net Worth property finance.
Louis Levine
Finance Executive CeMAP
Bristol
0117 457 7862
Are you looking for a similar type of property finance?
Get in touch today and find out how I can help.
George Abouzolof
Finance Broker
Bristol
0117 403 3444
Do you need help sourcing your own property finance?
I have extensive experience securing UK mortgages for expat clients. Book a free telephone consultation with me at a time to suit you
Bridging Team
Clifton Private Finance
Bristol
0117 959 5094
Are you in need of a similar type of property finance?
Book a free telephone consultation with one of our bridging specialists today and see how we can help you.
Sam Baker
Finance Broker
Cardiff
0117 959 5094
Are you looking for a similar type of property finance?
As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you
Fergus Allen
Finance Broker
Cardiff
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you
Jacob Phipps
Finance Broker
Bristol
(+44) 0117 959 5094
Are you looking for a similar type of property finance?
I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you
Jack Spillane
Finance Broker
Bristol
0117 959 5094
Mathew Phillips
Senior Finance Broker
Bristol
0117 959 5094
Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.
Book a free telephone consultation with me at a time to suit you
Alex Chambers
Senior Finance Broker
Bristol
0117 403 4324
Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.
Book a telephone consultation at a time that suits you:
Luther Yeates
Senior Finance Broker
Bristol
0117 244 5561
Are you looking for a similar type of property finance?
I have extensive experience finding residential and investment property finance for UK and international clients. Book a free telephone consultation with me at a time to suit you.
Sam ONeill
Senior Finance Broker
Bristol
0117 959 5094
Is your situation similar?
I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you
Robert Gibb
Senior Finance Broker
Bristol
0117 959 5094
Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.
Book ConsultationAdam Arnott
Associate Director
Bristol
0117 205 0214