UTB completes £590,000 downsizing bridge

The lender was approached by a broker acting on behalf of a woman who wished to move from her home in the West Country to be closer to her family in Hertfordshire.

Although the woman wished to move to a smaller property, it was in a more expensive area and cost more than her current home would sell for.

While the borrower had some savings to put towards the purchase, the sale of her current residence would not have provided sufficient funds to exit the bridge and would leave a shortfall.

Given her age, obtaining a mortgage to cover the shortfall was not possible.

Fortunately, her son had some unencumbered buy-to-let properties he could refinance if required and so he stepped in to provide the additional security.

UTB provided a £590,000 loan at 45% LTV over 12 months, structured with the mother as the borrower and the son providing additional security by way of a third-party legal charge.

Although the bank required the property being purchased as security, it did not require a valuation of that property, saving the client time and money in additional fees.

With the loan approved, the customer was able to move into her new home in January.

Rob Love, head of broker development for bridging at United Trust Bank, commented: “This is a great example of a downsizing case with a more unusual set of circumstances.

“By working together with the borrower and their broker we were able to provide a tailored solution which enabled our customer to make the move she wanted when she wanted.”