Owner-Occupied Bridge

Residential bridge Exit: £505,133 Refinanced 5 Days Before Expiry

Our client came to us with only a few months left on their bridging loan and a London terrace house to refinance. Exiting a bridge onto a residential property loan is usually a question of timing, and this case had to change course along the way.

We secured a £505,133 interest-only residential mortgage on a £925,000 London terrace house, switching lender when the redemption figure moved, and completed 5 days before the bridge ended.

The scenario

Our client first approached us with a bridging loan secured on a London terrace house and only a few months left on the term. The plan was to refinance onto a residential mortgage before the term ran out, and with so little time, there was little room to spare.

The challenges

1. A Fixed Bridge Expiry

   The bridging loan had a fixed end date. Everything, from sourcing to offer to legal work, had to be completed before that date.

2. A Redemption Figure That Moved

   The first deal was built around a loan of £440,503. Once the final redemption figure was confirmed, including interest rolled up on the bridge, it came to £505k. The first lender wouldn’t stretch to the higher amount.

3. Switching Lender Mid-Case

   With the original lender unable to go higher, the case needed a new product from a different lender, sourced and underwritten in the time that remained.

4. Completing Before Expiry

   A new lender meant a new application on a shortened timeline, with the legal work needing to finish before the bridge ended.

The solution

We first secured a deal with a lender at £440,503 and 4.65%.

When the final redemption figure came in at £505k, that lender wouldn’t go to the higher amount. We sourced a new product with a different lender, who agreed a loan of £505,133, interest-only at 4.72% on a 2-year fixed rate. With time short, we called the final lender’s BDM directly to get the case over the line. It’s the kind of speed that exits through residential property mortgages need when a bridge is about to end.

To make the date, a consultant at the solicitors worked over the weekend to complete the legal work.

The outcome

Re-sourcing after the redemption figure changed took the case into the final week before the bridge ended, but the loan still completed 5 days before the term expired. Our client moved onto a 2-year fixed, interest-only residential mortgage of £505,133 on a £925,000 property.

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