Bridging loan on UK property to buy a house in Spain

The Scenario:

We were contacted by an independent financial adviser (IFA) from Spain acting for a UK-based client. The client had put down a deposit on a Spanish property and needed to raise the funds to complete the purchase.

Due to the complex nature of purchasing property in Spain, the client had been required to put down a significant deposit to secure the property. They were at risk of losing this deposit if they could not quickly raise the £330K they needed to complete the purchase of their new property.

The client had a property in London worth £635K which they ultimately intended to sell so they could move to Spain and live mortgage-free. Unfortunately, they could not realistically sell the London property fast enough to raise the money in time to complete on the Spanish property.

Our Solution:

We recommended securing a bridging loan on the client’s London property to raise the necessary funds. This would allow them to complete the Spanish property purchase and give them time to sell their London property to repay the bridging loan.

Being based in Spain, the client’s IFA was unable to arrange a bridging loan themselves on a UK property, so we did this on their and client’s behalf. We quickly arranged a 18 month bridging loan for the full £330K the client needed at an attractive 0.45% rate of interest with an 18 month loan term.

This allowed the client to complete the purchase of their new Spanish property and gave them time to sell their London property to repay the bridge while keeping their interest payments to a minimum.

To find out more about getting property finance for buying a house abroad, call us on 0117 959 5094 or complete our contact form: