Bank of Mum and Dad comes to the rescue as a BFS bridge helps the daughter first step onto the property ladder.
Parents of an aspiring homeowner have secured a bridging loan with BFS to provide a deposit for their daughter’s new home.
Clients, Mr and Mrs Nickell’s home was valued at £1.2 million, and they were keen to release equity in the property to help their daughter secure her first house with her partner.
The client’s daughter didn`t have enough for the deposit on her brand new house, and whilst her father was waiting for inheritance funds, he borrowed against his own home, allowing the purchase of the new build home in Hemel Hempstead.
A bridging loan of £195,000 was secured to provide a deposit for the three-bed semi – funds were needed as the exchange had been set by a specific date.
Becky of BFS explained: “Bridging can be used to unlock challenges in very different circumstances. Here, the daughter needed support by way of a deposit and mum and dad were keen to help. We were happy to provide the loan, guaranteeing the value against the mortgage-free house, whilst the parents knew they had money in the pipeline to repay the debt once the inheritance details were finalised.
“The clients, their daughter and her partner all worked well with us and responded quickly to all our requests for additional information, which helped move things along swiftly. Ultimately we secured the deal within the given timeframe, and the daughter and her partner now have their dream home and are very firmly on the property ladder!”