Early bird! Bridging loan paid back after only 25 days
Often a bridging loan is used to buy time and pay off another loan whilst the sale of a property, or multiple properties, complete.
In this case, our client, a property developer, had completed a site consisting of 10 apartments. Of these, 7 out of the 10 new build properties had already sold and the borrower was looking to secure a bridging loan to pay back an existing development loan, until the remaining 3 units sold.
At times, sales can stall or fall through, leaving the borrower in a tricky position to meet their existing finance obligations whilst ensuring they have a solution to keep their investment plans moving forward.
We were able to step in and provide the client with fast finance while they waited for the remaining 3 sales to complete, by providing a facility of £367,875. This enabled the borrower to cover their existing loan and buy time for the other 3 units to sell.
Initially, we agreed to a 6-month loan term, however after only 25 days into the loan term, the borrower contacted us explaining they were in a position to redeem early.
It is often the case that a loan can be paid back earlier than expected, however, this is one of the fastest redemptions we have ever seen. Nevertheless, this was no issue for Hope Capital and the developer was delighted the sale of the remaining units sold so quickly.