When unexpected financing challenges threaten to derail a property purchase, securing a swift and reliable alternative is essential. At Aria Finance, we specialise in providing fast, flexible funding solutions to help clients overcome last-minute obstacles. Recently, we assisted a client who faced losing both her deposit and her new home when her mortgage offer was unexpectedly withdrawn due to a change in her financial circumstances. Our ability to act quickly and strategically ensured she could proceed with her purchase within the tight timeframe.
The Client:
Our client had exchanged contracts on a new residential property, a three-bedroom semi-detached home priced at £599,950. She had an existing mortgage offer in place but faced an unforeseen challenge when the lender withdrew their offer due to changes in her credit profile. With completion set for just 14 days after the exchange, she had no time to secure an alternative mortgage.
The Situation:
The client had already completed the sale of her previous home and was temporarily living with her mother while awaiting completion on her new purchase. When her mortgage offer was withdrawn at the last minute, she faced the risk of losing both the property and the deposit she had already paid. She needed urgent financial support to bridge the gap and secure the purchase.
Initially, the required loan amount resulted in an LTV of 85%, which exceeded the limits for a regulated bridging loan. However, the client’s mother, who owned a three-bedroom detached property valued at £950,000 outright, was willing to offer it as additional security to bring the LTV down to an acceptable level. A further challenge was that the mother was on holiday in Australia at the time, which complicated the legal and valuation process.
Our Solution:
We acted swiftly to secure a bridging loan, using both the new property and the mother’s unencumbered property as security. Our industry expertise and deep-rooted relationships with an extensive panel of lenders meant we could identify a lender willing to proceed under these circumstances.
To streamline the process and avoid delays, the lender used an Automated Valuation Model (AVM) instead of requiring full valuations on both properties. Additionally, given that the client’s mother was abroad, the lender agreed to conduct the Independent Legal Advice (ILA) session via video call, ensuring all legal requirements were met without disrupting the transaction.
Recognising the urgency, we worked closely with the lender and solicitors, ensuring all necessary steps were completed efficiently. Every aspect of the process was carefully managed to comply with the required guidelines for a regulated transaction while keeping the client’s deadline in focus.
At the same time, we arranged a replacement long-term mortgage with an alternative lender who was comfortable with the client’s revised financial profile. This ensured there was a secure exit strategy in place from the outset, giving reassurance to both the client and the bridging lender that the short-term finance could be repaid well within the 12-month term.
Benefits & Results:
Thanks to our proactive approach and strong relationships with the lender, we secured the bridging loan within just 14 days from the initial enquiry. This ensured that the client could complete her property purchase on time, avoiding the risk of losing her deposit or missing out on her new home. The use of AVMs eliminated the need for costly and time-consuming valuations, and the lender’s flexibility in conducting the ILA remotely allowed the transaction to proceed smoothly despite logistical challenges.
By leveraging our expertise in specialist property finance, we provided a fast and effective solution tailored to the client’s unique circumstances. Our ability to navigate complex situations and deliver results under tight deadlines in this case exemplifies our commitment to helping clients achieve their property goals, no matter the obstacles.
