United Trust Bank (UTB) has completed a £234,000 second charge bridging loan to enable a customer to purchase a retirement property overseas, while also consolidating existing debt.

The borrower had already paid a deposit on a new home in Cyprus and needed to complete the purchase within six weeks. However, their funds were tied up in the equity of their current property in West London, which had yet to be sold. With limited income and existing unsecured debts from recent home improvements, the borrower turned to a bridging solution.

The property in London passed an automated valuation model (AVM) at £702,000, allowing the borrower to avoid paying a valuation fee. With only a small first charge mortgage on the property, there was sufficient equity to support a second charge bridge at just over 40% loan-to-value (LTV). Consent from the first charge mortgage lender was obtained, and UTB completed the loan in time for the customer to meet their deadline.

The loan also enabled the borrower to consolidate their unsecured debt, improving their cash flow and allowing them to prepare for a move abroad. The bridging loan will be repaid once the UK property is sold.

Gary Lomax (pictured), key account manager – bridging at United Trust Bank, said: “Bridging loans are typically solutions to property finance problems. Our customer wanted to complete the purchase of their retirement home in the sun, but all their money was tied up in equity in their UK home.

“They had an existing mortgage, sizeable unsecured debts and didn’t have the income to support a large remortgage or second charge mortgage. In these circumstances a second charge regulated bridging loan was an excellent and quick solution to their short-term funding problem.

“Not all lenders are happy to offer second charge bridging loans, but at UTB we have the appetite and the experience to provide brokers with a full range of options to help their customers achieve their goals.”