Bridging Loan To Purchase Narrow Boat

The Scenario

Our client, who owned a property in Kent worth £615,000, wanted to purchase a narrow boat.

The client intended to sell his property in order to buy the boat, and put his house on the market.

He received an offer on his residential house, but the sale fell through. The client was in danger of losing out on the boat to another buyer, and needed a substantial amount of finance to complete his purchase.

Our Solution

The client had £200,000 remaining on his mortgage, so he had a couple of options available to him: he could either refinance his property at a lower interest rate or secure a second charge to sit behind his initial mortgage at a higher interest rate.

As the client only required short-term property finance, we arranged a second charge against his existing property for £140,000. This was the better option for him, although he paid higher interest, he did not incur the significantly higher fees it would cost to refinance his entire mortgage. By paying higher interest over a short period of time, the client actually saved a substantial amount of money.

We were able to raise the finance within 10 working days, and enabled the client to complete the purchase of the narrow boat before his existing property sold.