A client came to us with a three-week deadline to complete the purchase of a property which they wanted to refurbish and then let.
After being turned down for a traditional mortgage by high street lenders, the client lost a lot of time and was at risk of the sale falling through.
The client was part of a chain which hinged on our client completing the purchase by a set deadline. With time lost through applying to high street lenders, the client was left with just three weeks to complete the purchase.
With such a tight deadline, a traditional mortgage would be difficult to complete in time. After a consultation with Bradley, a Commercial Manager at Cornerstone, it was decided that the best way to secure the property was to use a short-term bridging loan and try to secure the bridging loan in three weeks.
Bridging Loans are short term loans which can be used to bridge a gap and are usually used for projects that need a fast turn around.
The usual turn-around time for a bridging loan is four weeks, but with a huge effort, Bradley was able to secure the funding from Hope Capital to meet the deadline and secure the bridging loan in 3 weeks.
Using the bridging loan meant that the client was able to buy the property and start the refurbishment work. Once refurbished, the client would then be able to refinance the property with a traditional buy-to-let mortgage.