Short Term Finance from Private Bank Secures £1.6m Colchester Home

Short Term Finance from Private Bank Secures £1.6m Colchester Home at Low Interest Rate

Area
Colchester
Capital Raised
£800K

The Scenario

Our client was looking to upgrade their family home to a £1.6m large residential property in Colchester.

But having found the perfect property for their family, they couldn’t afford to wait until their current home sold to make the purchase, or they’d risk losing out to another buyer - and they didn’t have the cash on hand to buy outright.

To avoid losing the property, they came to us for a short-term property finance solution.

The Solution

This type of case is perfect for a bridging loan, and it’s a common scenario that we see on a day-to-day basis: buying a house before selling your current property.

More and more people are using bridging loans as a short-term finance tool to bridge the gap between buying and selling – it's a surefire way to secure the home you have your hopes set on while leaving plenty of time for the sale of your current property to go through.

Our client had £800k of readily available funds for the purchase, so they needed a bridging loan of £800k to reach £1.6m.

They had a £290k mortgage still outstanding on their current property, valued at £1.3m, and they would sell this before the end of their bridging term to repay the loan comfortably while leaving them with £200k cash left over.

Private Bank Connection – Better Interest Rates for High Net Worth Clients

This client owned a successful estate agency and earned a salary of £300k per year. This qualified him as a High Net Worth Individual, making him eligible for private lending from selected private banks.

While a standard bridging loan would have cost our client over 4% in interest over his 12-month term, the private bank we used was able to offer the same loan with an interest rate under 3% as well as the option to repay monthly and accompanied by the highest quality of service.

Usually, bridging loans can only be repaid as a lump sum. Still, the private lender we used was able to run an affordability test against our clients’ high income to justify their monthly repayment of interest (essentially an interest-only mortgage affordability check).

The flexibility and customisation of private lending are often its main attraction. While you can achieve lower interest rates, bigger loans, and lower deposit requirements from private banks, our clients often find that the elite level of service and the flexibility of finance options set this type of finance apart from the rest and adds the most value.

Please read our full guide to High Net Worth property finance

 

Max Mallinson

Finance Broker CeMAP

Cardiff

0117 332 5977

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Book a free telephone consultation with me at a time to suit you.

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Jonathan Moffatt

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Cardiff

0203 880 8890

Do you need help sourcing your own business finance?

I have extensive experience securing finance for a wide range of businesses. Book a free telephone consultation with me at a time to suit you. 

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Alex Morris

Private Client Adviser

Bristol

0117 332 5061

Do you need help sourcing your own property finance?

I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.

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Scott Dutfield

Finance Broker

Cardiff

0117 959 5094

Are you looking for a similar type of property finance?

As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you

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Carly Cheeseman

Head of International

Bristol

0117 457 9922

Do you need help sourcing your own property finance?

I have extensive experience securing UK mortgages for clients. Book a free telephone consultation with me at a time to suit you.

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Nick Kerley

Finance Broker

Cardiff

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As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.

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Louis Levine

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Bristol

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Sam Baker

Finance Broker

Cardiff

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As a specialist bridging adviser at Clifton Private Finance, I can take a holistic view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.

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Fergus Allen

Senior Finance Broker

Cardiff

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Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

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Jacob Phipps

Finance Broker

Bristol

(+44) 0117 959 5094

Are you looking for a similar type of property finance?

I specialize in helping international clients source residential and investment property finance for UK property. Book a free telephone consultation with me at a time to suit you.

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Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need. customDatabaseField-8455

Mathew Phillips

Senior Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Book a free telephone consultation with me at a time to suit you.

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Alex Chambers

Senior Private Client Adviser

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

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Luther Yeates

Senior Finance Broker

Bristol

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Sam ONeill

Senior Finance Broker

Bristol

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I am a bridging finance specialist at Clifton Private Finance. I can find a quick, cost-effective solution for the funding you're looking for. Book a free telephone consultation with me at a time to suit you.

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