The Challenge
Portway Finance was approached by a client who owned a £3.8M family home and was facing the imminent expiry of a large second charge bridging loan secured against their main residence. The client’s original exit strategy had been delayed, leaving just two weeks before the facility was due to enter default.
The case was regulated in nature, adding additional complexity. The primary exit strategy was the sale of business shares, rather than a property transaction, which limited lender appetite. A secondary fallback exit via a standard residential refinance also needed to be preserved.
With the festive period approaching, valuation availability, legal capacity, and lender turnaround times were all under pressure. A fast, coordinated solution was required to avoid default and stabilise the client’s position.
Our Solution
Portway Finance structured a regulated first charge bridging loan to refinance both the existing first charge mortgage and the expiring second charge bridging facility into a single loan.
Using our lender relationships and detailed understanding of regulated bridging criteria, we identified a lender comfortable with both the non-property exit strategy and the regulated use of funds.
Immediate valuation and legal instruction were secured, allowing the case to progress without delay despite the tight timeframe.
The lender agreed to proceed on the following terms:
- £2,543,000 gross loan
- 67% loan-to-value
- 12-month term
- 0.99% per month
- Retained interest structure
The Outcome
The new facility completed in time to avoid default on the expiring second charge loan and provided the client with 12 months’ breathing space to execute their exit strategy.
The structure allowed the client to proceed with the sale of business shares as the primary exit, while retaining the option to refinance onto a standard residential mortgage if required.
This case demonstrates Portway Finance’s ability to deliver regulated bridging solutions under extreme time pressure, combining lender expertise, clear structuring, and decisive execution to protect clients when original exit plans are delayed.
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