Bridging Loan and Refinance Arranged for Large Self Build | Case Study

Bridging Loan and Refinance Arranged for Large Self Build

Area
Milton Keynes
Capital Raised
£225k

At Clifton, we have the unique ability to provide both bridging loan advice, and advice on the subsequent refinance if you're exiting via a mortgage.

This means we can significantly speed up the process for you - saving you time and hassle in explaining your situation to multiple brokers and lenders - and can provide the reassurance that your longer-term financial plans are water-tight and in safe hands.

The Scenario

We were recently approached by a husband and wife who had self-funded the development of a stunning new family home in Milton Keynes.

But with the project nearing completion they were short on funds, needing an estimated £200k to finish the development while maintaining the high standards of work on the property.

While they had originally planned to remortgage the home once built, it still required fairly significant internal work throughout, and was currently still deemed as 'unmortgageable' in the eyes of traditional mortgage lenders.

So, they'd explored the option of a bridging loan, and came to us for help.

The Solution

We advised that a bridging loan would provide the perfect stopgap to see the project through to completion before refinancing.

With the property currently valued at £1m, they could comfortably raise £225k (£200k for planned work, and a £25k surplus as a contingency) against the home at a very competitive interest rate, to be refinanced with a mortgage when complete.

Having never used bridging finance before, the clients were initially anxious about the process - particularly as they had funded the entire development with their own funds up to this point.

Our broker took the time to go through the process step-by-step in thorough detail, including the costs, potential risks, repayment terms, and more, to aid in their understanding of the process and help them feel comfortable.

Additionally, a senior member of our residential mortgage team was able to step in and provide reassurance that the remortgage to repay the bridging loan would be a straightforward case, and presented a sound exit plan.

Additional challenges:

As with most bridging loan cases, there were a few hurdles along the way for our broker to navigate:

  • The clients wanted to remove the husband from the title of the property to strengthen their remortgaging position. While this was their decision, we needed to ensure that the client had received independent legal advice (ILA) on the implications of this and keep a close eye on the administration involved.

  • They were also working to a deadline - with contractors scheduled to start internal works and requiring payment - so we needed to act fast.

By chasing through the deal with solicitors and the business development managers at the bank, we managed to complete this case from start to finish in just 63 days for the client - an exceptional turnaround, especially when factoring in the ILA requirement.

The client also has the peace of mind knowing that when the work is complete, they can get back in touch for a seamless transition into long-term financing with their mortgage application ready to submit.

Max Mallinson

Finance Broker CeMAP

Cardiff

0117 332 5977

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.

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Jonathan Moffatt

Head of Business Finance

Cardiff

0203 880 8890

Do you need help sourcing your own business finance?

I have extensive experience securing finance for a wide range of businesses. Book a free telephone consultation with me at a time to suit you. 

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Alex Morris

Private Client Adviser

Bristol

0117 332 5061

Do you need help sourcing your own property finance?

I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.

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Scott Dutfield

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

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Carly Cheeseman

Head of International

Bristol

0117 457 9922

Do you need help sourcing your own property finance?

I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.

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Nick Kerley

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.

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Development Finance

Broker Team

Cardiff

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We have extensive experience securing UK development finance. Book a free telephone consultation with our team at a time to suit you.

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Bristol

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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.

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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.

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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.

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Fergus Allen

Senior 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.

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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.

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Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need. customDatabaseField-8455

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.

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Alex Chambers

Senior Private Client Adviser

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.

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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.

 Book a free telephone consultation with me at a time to suit you, clifton private finance

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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.

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