£1.1m Bridging and Interest-Only Funding Enables Property Purchase Ahead of Sale
What was the situation?
Our client, a retired professional in his mid-60s, was selling his West London home, valued at £3.3m, to purchase a property on the South Coast worth £2.2m. He wanted to complete the purchase before his current home sold, freeing him from a property chain, and with a proportion of the new purchase covered in cash, our client needed to fund the remaining £1.1m.
Having exited full-time work some years earlier, our client had no current earned income, narrowing the lending options available to him.
What was the issue?
Without earned income, this was not a case that fitted standard affordability criteria. Our client needed full interest-only borrowing to keep monthly costs manageable.
He also needed complete flexibility to repay or restructure the balance without penalty once his current property sold, ruling out most fixed-rate products, which carry exit charges as standard.
What was the process?
For the bridge, Romit took the case directly to a high street lender’s senior underwriter, identifying terms based on our client’s age, repayment vehicle and the wider transaction, and securing the facility on notably competitive terms.
For the mortgage, the focus turned to affordability. Our client held a considerable pension fund but was drawing a modest amount per year in income, a position most lenders would not have reflected fairly in their assessment. Romit sourced a lender prepared to stress-test affordability on an interest-only basis against the pension fund’s value across the mortgage term, rather than current drawdown alone, and one willing to extend interest-only lending beyond age 70.
What was the solution?
Our client secured both facilities against his current property, a bridging loan and an interest-only mortgage, together releasing the £1.1m needed to fund his new purchase without waiting for his existing home to sell.
The mortgage was arranged on a tracker rate, carrying no exit fees and no penalty for overpayment or early repayment, giving our client complete flexibility to redeem or restructure the balance the moment his current property sold, in line with his aim of holding little or no ongoing mortgage once the sale completed. Both facilities were arranged on notably competitive terms, allowing him to complete his move without compromise on cost or timing.
This case turned on looking beyond our client’s current income to the full picture of his financial position, and identifying two lenders, each equipped to assess pension wealth, age and the wider transaction on their own merits rather than against standard criteria.
It’s the kind of specialist expertise LDN brings to high net worth and complex income mortgage lending: reading a client’s true financial position, not just the income on paper, and placing each part of the structure with a lender able to assess it properly.
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My fiancée and I were recommended to LDN Finance when we started our mortgage journey, and the service we have received, and continue to receive, has been outstanding throughout. Phil Levesley initially looked after us and made what can be a very daunting process feel straightforward and easy to understand. He took the time to explain everything clearly, never rushed us, and was always happy to answer any questions we had. Nothing ever felt like too much trouble. As part of the process, we also wanted to explore a number of protection policies, and Phil introduced us to his colleague,
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