20 January 2026 | Written by Mercantile Trust
Case Study: Fast 1st Charge Bridging Loan to Support Family Business Investment
Customer Overview
The customers approached our direct sales team looking to raise £70,000 to invest into their family-run business. Speed and certainty of funding were essential, as the capital was required promptly to support business growth.
The Challenge
The customers required a short-term funding solution that could be completed quickly, without unnecessary complexity or delays. They owned an unencumbered buy-to-let (BTL) property, which they were happy to use as security, but wanted a straightforward process with minimal third-party involvement.
Our Solution
Our team structured a 1st charge bridging loan, secured against the customers’ unencumbered BTL property. Due to the modest loan size, the case did not require solicitors, enabling a faster and more streamlined completion.
The loan was set up as a fixed-for-term rolled-up bridge over a 12-month term, meaning no monthly repayments were required during the loan period. All interest was rolled up and payable at the end of the term.
Timescales
- Initial enquiry: 13/01/2026
- Case submitted to underwriting: Same day
- Completed: 15/01/2026
From enquiry to completion, the entire process was handled efficiently by our direct sales team, ensuring clear communication and a smooth borrower experience.
Exit Strategy
The customers’ primary exit strategy was the completion of projects within their family business, which were expected to generate sufficient funds to repay the loan within the term. As a prudent back-up, they also planned to refinance the property if required, giving them multiple, viable repayment options and added certainty from an underwriting perspective.
Outcome
The customers successfully raised the £70,000 required and were able to invest into their family business without delay. The fast turnaround, lack of solicitor involvement, and flexible repayment structure made the bridging loan an ideal short-term solution.
Key Highlights
- £70,000 raised on an unencumbered BTL property
- 1st charge bridging loan
- Fixed-for-term, rolled-up interest – No monthly repayments
- 12-month loan term
- No solicitors required
- Completed in just two days
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