Case Study - Commercial Bridging Loan
Client had wound down their business and was left with some business related debt. The client was planning on selling their residential property and downsizing. They would use the proceeds of the sale to both purchase the downsized property and pay off the businesses debt.
The sale of the residential property fell through at the 11th hour leaving the client with no income and still with the business debt to service on a monthly basis.
We sourced the client a 12 month 2 charge bridge on their residential property behind their first charge mortgage. This gave the client the funds to pay off the business debt whilst giving them 12 months to sell their residential property and exit the bridging loan. Interest on the bridging loan was retained meaning there were no monthly payments to be made as they were added to the loan.
This meant for a better quality of life during the loan period for the clients and the peace of mind that they had a full 12 months to sell the property.