Who said 100% Mortgages were dead?

Not us…but yes there is a catch, well, sort of…

If you’re a first time buyer with parents (or grandparents ) that own their house with little or no mortgage and who are willing to lend a helping hand, then we could have the answer to getting on the property ladder.


Meet Beth and Luke. Head over heels and newlywed after falling in love in the workplace and moving into rented accommodation 2 years ago. Well it just so happens, they loved their little starter home and were distraught at the thought of moving out when they learned their landlord decided to sell.

Step forward equity rich parents who wanted to help out. Unfortunately however, they didn’t have the £24,000 cash deposit required (well they do like a night out, or did pre-Covid !) for the usual Mortgage application. 

We managed to obtain for them 100% of the purchase price as a mortgage as they had good jobs, incomes and credit ratings, and the parents were willing to use the equity in their property to guarantee part of the mortgage without having to hand over any cash.

The win/win is they now have the house, with a mortgage payment lower than their monthly rent and no threat of a landlord asking them to leave at any point.

The only downside is their parents now seem a lot more interested in Beth and Luke’s` financial welfare when they drop-in, which is frequently! 

Obviously, there are lots of complex questions around affordability, responsibility and conditions with this product and should be only undertaken after a lengthy conversation with a qualified mortgage advisor who can give totally independent advice.   

Contact us to learn more about guarantor backed 100% mortgages to see if they are right for you.



Why Bridging Loans Are Good For Property Development

Bridging finance is a unique way for homeowners and business owners to embrace short term loans. Bridging loans act as a literal bridge between the times when funds are needed and when funds are going to be released from an asset, most commonly a property. Individuals, companies, and corporations use bridge loans to provide funds on short-notice notice for short periods.

They are perfect for property purchases and sales because funding is easily and quickly accessible. Most bridging loans have predictable costs when there is an exact repayment schedule, and so are a great fit for inclusion in property development projects.

Money Makes Money, Fast money makes money faster!

Refurbishment projects can require a lot of money, especially where the model is to buy a property, refurbish and then immediately sell it. Because of this, many property projects involve multiple partners; some that provide financial investment and others that manage the construction.

Some people prefer to fly solo, and some property companies would prefer not to bring any more partners than necessary. In any case, the property investment market is highly competitive and successful development projects require appropriate funds at speed.

The benefits of Bridging Loans

A bridging loan can be a great solution. Here are some reasons why:

Finance can be secured very quickly. Grabbing the right property at the right time and the right price is the difference between the success and failure of an investment project. Having the funds on hand is the key to doing that. You can put this in place ahead of time, making sure that you know exactly how and when your provider can get the funds to you.

Bridging loans can be great for grabbing great deals at property auctions, where deals are quickly snapped up, and easily accessible quick loans are invaluable. A bridge loan can also avoid a lot of the stress associated with property purchases. It is a great idea to build a good relationship with your lender so that you can continue to rely on them for funds to be delivered promptly.

Bridging loan lenders are more flexible when it comes to credentials and credit histories. They prefer to give a loan on the security of an existing property. Once the legitimacy and the value of the property have been approved, getting a bridge loan is quite simple.
Though a bridging loan needs to be repaid in a short period, e.g. likely within 12 months, providers are usually flexible as to the repayment schedule.

Friends Capital are brokers with access to lenders with the best bridging loan rates on the UK market, contact us for a free, no obligation bridging loan enquiry.

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