Case Study: £100,000 Bridging Loan Secured in 48 Hours

The Requirement

An experienced property investor approached us through their broker seeking £100,000 to support the purchase of an additional buy to let property. The funding was required on a short-term basis, with speed and certainty being critical to securing the opportunity.

The Challenge

The client’s existing mortgage lender was one we knew would not grant consent for a further advance or additional borrowing. This ruled out a traditional route and required a pragmatic alternative solution that would still allow the transaction to proceed smoothly and on time.

In addition, the client wanted:

• A short 6-month term
• No monthly payments, with interest rolled
• A fast completion timeframe

The Solution

We structured the facility using an equitable charge, allowing the client to raise the required funds without disrupting their existing mortgage arrangements.

The final terms included:

• Loan amount: £100,000
• Term: 6 months
• Product: Rolled bridge (no monthly payments)
• Valuation: Passed on AVM
• Security: Equitable charge

The case was exceptionally well packaged by the broker, meaning all key information was provided upfront. This significantly reduced the need for further queries and allowed our underwriting and completion teams to move at pace.

The Outcome

Thanks to clear communication, strong packaging, and a flexible approach to structuring the loan, we were able to complete in just two days, enabling the client to proceed with their purchase without delay.

Key Takeaway

This case highlights the importance of:

• Knowing when a traditional lender route won’t work
• Using equitable charges as a practical alternative
• Strong broker packaging to enable fast completions
• Flexible short-term funding solutions tailored to real-world scenarios

When you think of speed, think Mercantile Trust!