Keeping the Chain Intact with Specialist Bridging Finance
The Client Background
A broker approached us on behalf of a client seeking a bridging loan to refinance their existing residential property, valued at £460,000. The property had an outstanding mortgage balance of £113,000; however, the current lender was unable to accommodate any additional borrowing due to loan-to-value (LTV) restrictions.
At the same time, the client had already purchased a new property, but required significant refurbishment and improvement works before it could become their long-term family home.
The Challenge
✓ The existing lender declined additional borrowing due to LTV restrictions
✓ The client required fast access to capital to fund essential refurbishment works on their new property
✓ The onward purchase formed part of a wider chain, creating additional time pressure and complexity throughout the transaction
✓ The new property’s current condition and structure made it unsuitable for traditional refinancing onto a term mortgage product
The Loan
Product: Regulated Bridging Loans
Lender: PRECISE.
Loan Amount: £319,189
Loan Purpose: Essential refurbishment of new property
LTV: 67.91%
Term: 12 Months
Packager Fee: £295
Commission Share: £6,383.78
Service: Positive Lending Advised
The “Positive” Solution
Positive Lending structured a tailored bridging solution that enabled the client to refinance their existing residential property and raise £319,189. The facility cleared the outstanding mortgage balance while releasing additional capital to fund the refurbishment works required on the new property, all while retaining the flexibility needed ahead of securing long-term finance.
By taking a pragmatic approach and looking beyond standard high street lending criteria, we were able to progress the case where other lenders could not. A fast and efficient underwriting process ensured momentum was maintained throughout the transaction, which was particularly important given the pressures of an active property chain. This was further strengthened by a clearly defined exit strategy, with the intention to refinance onto a traditional mortgage once the improvement works had been completed.
Despite an initial lender decline, we successfully secured the funding required, the onward chain remained intact, and a clear pathway toward future refinancing was established.
Why Choose Positive?
Positive Lending delivered a tailored bridging solution where traditional lenders could not, securing the required funding quickly to keep the client’s property chain moving. Our specialist expertise and lender relationships ensured a smooth process with a clear exit strategy for long-term refinancing.