Saving a couple’s downsizing dream with a six-figure bridging loan after their lender pulls out.
Wendy and Craig Johnstone had spent 25 years in their self-built family home in Dunfermline, Scotland, and had added a large extension to accommodate her parents. But when plans changed and their daughter and her partner also moved out, the home became too big for them, and they decided to downsize to a smaller property just a short walk away.
What should have been a straightforward move quickly turned into a race against time and risked collapsing the entire chain.
The issue
Ten days before completion, the couple’s original lender withdrew their offer. The extension on their current home was classed as an “annex,” which the lender deemed unsellable despite the property already being sold within three weeks.
“Everything had been arranged, and then they [the broker] came back to us and said the mortgage company couldn’t agree to give us the money anymore. It was awful,” said Wendy.
Not only were Wendy and Craig at risk of losing their new home, but they also feared letting down the widow selling it, who had already sold her furniture and was ready to move. The buyers of their current home were also relying on the deal to go through, having searched for two and a half years to find a property suitable for their young family and aging parents.
“All I could think was, we can’t let her down,” Wendy said. “That’s what made it really stressful.”
Wendy and Craig aren’t alone
Alongside frustration, ‘stressful’ was one of the most common words over 2,000 UK homeowners used to describe being part of a property chain, according to our latest survey.
We also asked how much they knew about bridging loans and how they could be used to rescue their dream move when things go wrong.
Check out some of the other insights we unearthed in the survey.
The enablement
With the chain on the brink of collapse, their broker reached out to us for a solution. Wendy immediately noticed the difference in approach.
“I went on Google and looked at the reviews for Together, and they were excellent. Everyone said they were willing to speak to customers, and that made such a difference.
The first person I spoke to was just so reassuring. He kept me up to date, phoned me back when he said he would, and really made things easier.”
Working with the broker, we were happy to support the couple a six-figure bridging loan to cover the purchase of the new property. Designed as a short term solution, the couple would have up to 12 months to repay the bridging loan, which they’d easily be able to do once the sale of their existing house completed.
How do bridging loans work?
If you’re new to bridging finance, our explainer guide covers everything you need to know about these short-term solutions.
Including FAQs and videos, you’ll learn how bridging loans work, who they can help, some of the considerations you need to know before applying, and the problems they’re designed to solve.
The result
With the funds quickly and safely deposited in their account, Wendy and Craig were able to complete their dream move and keep the rest of the chain intact.
“For other people in the industry, it’s just normal, but for us, it was really, really stressful. Together were brilliant. They understood that, and they pulled out all the stops to get it over the line. Honestly, I’ll never forget how stressful it was, but I’ll also never forget how much they helped.”
Bridging loans are meant for short term use only so it’s essential that you know how you’re going to repay within the timeframe before you apply for one.
If you miss the repayment (and aren’t able to refinance or find an alternative way to sell), your property could be at risk of repossession.
Need help with a broken chain?
If you’re facing delays or last-minute issues with your property purchase, our chain break bridging loans could help you move forward with confidence. Speak to our expert team to see how we can help keep your chain intact.
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Loans offered by Together Commercial Finance Limited are not regulated by the Financial Conduct Authority.
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