When short-term finance needs a little more time: Supporting a single mum whose bridging loan was nearing expiry.

Twelve months can often feel like a long time. But when you're improving and marketing a property ahead of downsizing, it isn't always long enough.

When a single mum's existing bridging loan was nearing expiry and her home was still on the market, her broker needed a solution that could provide extra breathing space while keeping her plans on track for her family.

The ask

The customer's original bridging loan had helped fund improvements to her Surrey home while also enabling her to consolidate some existing debts. The plan was straightforward: complete the works, market the property and use the sale proceeds to repay the facility before downsizing.

The renovations were successful, helping to increase the property's value to more than £1m. But while the home had been transformed, the sale had yet to complete. With the original bridge nearing expiry, the customer faced the prospect of additional costs and penalties despite her long-term plan remaining firmly in place.

After approaching a number of lenders without success, her broker needed a funding partner willing to assess the customer's full circumstances, not just the headline challenge of refinancing an existing bridging loan.

The solution

Via the Mortgage Advice Bureau, Lea Karasavvas, Managing Director at Prolific Mortgage Finance, approached Together. Known as one of the UK's most prominent bridging providers, we recognised that although the case involved refinancing an existing bridging loan, the exit strategy remained strong and the loan-to-value against the newly renovated property was just 21%.

The underwriting team at Together were also able to assess the client's full circumstances, including some historic credit issues, before deciding to support the application.

Lea explains: “I think there’s a general misconception when someone is looking to redeem a bridging loan with a second one that the exit strategy isn’t strong enough. But that’s not always the case. In this situation the plan was still very much in place but the customer just needed that extra time to complete.

“Together saw that really early on in the process, made a quick and fair decision, and ultimately supported my client, who would’ve otherwise been hit with some quite expensive penalties for missing the repayment window.”

The result

The £165,000 regulated bridging loan progressed from submission to offer in just nine working days on a rolled-up interest basis. This meant the client did not need to make monthly interest payments, giving her additional breathing space while continuing to market her home and repay the balance upon sale.

Lewis Wheeler, Regional Account Manager at Together, explained: “Brokers are seeing more cases that sit outside the mainstream, not because the customer has done anything wrong, but because life rarely follows a perfect timetable. Property sales are delayed, plans evolve and circumstances change.

"In this case, the customer's exit strategy remained strong, but she needed additional time to see it through. By taking a common-sense approach and looking at the full circumstances, we were able to provide a solution that kept those plans moving forward at a critical time"

Lea echoed Lewis’s delight at getting the transaction over the line for a deserving client:

“We’ve been fortunate enough to be working with Together for a few months now, and seeing the whole team, together, go that extra mile (or two or three) has left a mark that will long be remembered.

“Thank you for seeing the merits that others couldn’t and for backing a client who just needed a break.”

When a strong exit strategy needs a little more time, specialist lending can make all the difference. Speak to our expert team to see how we can help.