Million Pound Bridging Loan Across Two Country Homes with Drawdown Flexibility to Fund Classic Car Purchases

Most bridging lenders don’t like offering drawdown on regulated bridging loans because you don’t pay interest on what you haven’t drawn from the loan – but, they offer great flexibility for borrowers.

And there are lenders who let you do it - you just need a broker who knows how to negotiate the right product.

The Scenario

Our client came to us out of frustration with his current broker.

He felt that his current adviser wasn’t going the extra mile to get the flexible finance solution he needed and they weren’t seeing the bigger picture he could see.

He needed a large, bespoke bridging loan of £1m for a new country home purchase whilst waiting for his current £2.1m residential property to sell.

In addition, he wanted to raise finance greater than his new property’s value in order to pay off some creditors, clear his existing mortgage, and purchase a number of classic cars he viewed as an investment opportunity.

But he was having difficulties getting the loan he needed due to the following complications:

• Bridging Lenders currently don’t like offering drawdown on regulated bridging loans
  
  
• They also don’t like lending for other purchases, like classic car investments or paying off creditors
  
  
• They wanted to raise the absolute maximum LTV based on the value of their current property
  
  
• Time-sensitive - they needed bridging finance to secure their new home ASAP

The Solution

Thanks to our expertise and trusted relationships in the industry, we secured a bridging loan for our client that ticked all the boxes.

Our clients were able to borrow a total of £1.7m, but only took £690k of this upfront. This allowed them to exchange, clear their current mortgage, pay off some creditors and even purchase the classic cars they saw value in.

They then had £1m left of the loan ready and waiting for them to draw upon and complete their new home purchase when the time came.

And they didn’t have to pay interest on the £1m until they actually used it.

Our bridging finance solution also sorted the rest of the issues:

• The maximum limit LTV available at just over 60%
• Competitive interest rate
  
• Fast and efficient process
  
• Great service and support throughout

Why use Clifton Private Finance?

For regulated bridging loans (when you or a family member will be living in your new property), you are legally required to use a mortgage broker.

But, not all brokers are equal.

Our client was dissatisfied with the first company he approached. He felt they weren’t quick enough, weren’t efficient, and didn’t see the bigger picture he was looking at.

We stepped in and secured a drawdown bridging loan that banks don’t usually offer, acquiring a much better deal for the client.

To find out how we can help with your property finance needs, speak to us today.