Bridging loan, 9 million pound property, no AUM

16th October 2020
VICE PRESIDENT

Chris Lloyd

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Bridging loan, 9 million pound property, no AUM
Chris Lloyd
VICE PRESIDENT

Chris Lloyd

Key Facts  

  • Bridging loan with rolled up interest
  • Property value – £9,000,000  
  • Mortgage amount – £3,526,770 
  • LTV – 40%  
  • Client – UK resident 
  • Interest Rate – 0.48% Per month term up to a year 
  • No AUM 

Bridging finance is a lesser–known segment of the mortgage market but offers fantastic solutions to a whole range of financing scenarios. These short-term loans can be turned around in a matter of days, so are an excellent means to raise fast funds.   

In the current mortgage environment, where many traditional lenders are inundated and application times have increased, bridging still offers a quick route to raise money. The short-term nature also works well for borrowers who don’t want or need to commit to longer repayment terms. Enness may facilitate a bridging loan for clients who want to buy a home but have not sold an existing property, or perhaps those who are facing a deadline to take advantage of an investment opportunity.  

In this case, our client’s interest-only mortgage had come to an end on their property in North London and needed to be quickly repaid. The usual underwriting process and mortgage application would have taken too long with a private bank or standard lender. And, in any case, it did not suit the borrower to enter into another traditional mortgage deal because they were planning on selling the property, with it already actively being marketed.  

Enness knew bridging would be an ideal solution in this case and was able to secure the full amount of the loan to be repaid at a very competitive rate of 0.48% per month. The entire transaction was completed within just five working days, with the client only required to provide minimal information surrounding their circumstances. This was partly because the lender didn’t need to see any income or expenditure as Enness had explained how the client planned to use the property sale to repay the loan.   

The interest on the loan was rolled-up and didn’t need to be repaid until the end of the term along with the loan – this feature further helped with the client’s cashflow.   

Using our expertise and connections, we had created a quick and painless transaction, which was perfectly suited to the individual circumstances at hand. 

The Global High  Net Worth  Mortgage Guide

The Global High Net Worth Mortgage Guide

Are you considering buying a high-value international property? 

Our handy Global High Net Worth Mortgage Guide explores the world of international mortgage finance in prime property markets around the world. 

Whatever your property financing requirements, we have a specialist team in place dedicated to finding the best and most efficient solution. 

Let us guide you through the complex world of mortgages.  

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