How a bridging loan helped this family secure their dream home

By Alice Ingram 13th September 2024

For many families, the journey to finding a dream home is filled with excitement, anticipation, and sometimes, a bit of stress.

This was certainly the case for the Thompson family when they found the perfect house—an idyllic property in the countryside that ticked all their boxes.

But like many homebuyers, they faced a common dilemma: their current home hadn’t sold yet, and they didn’t want to risk losing the new property.

That’s when a bridging loan became the key to making their dream a reality.

Finding the Perfect Home

John and Sarah Thompson had been searching for a new home for nearly a year. With two young children and plans to expand their family, they needed more space, a larger garden, and proximity to good schools.

After months of searching, they finally found the perfect house—a charming four-bedroom cottage in a picturesque village just outside the city.

It had everything they wanted: a spacious garden, plenty of room for the kids to play, and a community that felt like home.

The Thompsons were over the moon, but there was one big problem: they hadn’t yet sold their current home.

The real estate market in their area was slow, and despite several viewings, they hadn’t received any offers that met their expectations.

To make matters more complicated, the cottage they wanted was in high demand, and the seller needed to close the deal quickly.

They feared that if they waited to sell their home first, they’d lose out on their dream property.

The Dilemma: Timing is Everything

With time running out, the Thompsons faced a tough decision. They didn’t have the funds to buy the new house outright without first selling their current one.

Waiting to sell could mean losing the cottage to another buyer, but rushing to accept a lower offer on their existing home wasn’t an appealing option either.

They were caught in the classic property chain—a common issue for homebuyers that can lead to missed opportunities and unnecessary stress.

That’s when their mortgage broker suggested a bridging loan as a potential solution.

How the Bridging Loan Worked

A bridging loan is designed for situations exactly like the one the Thompsons were in. It’s a short-term loan that provides immediate funds to buy a new property while waiting for the sale of an existing one.

The loan would bridge the financial gap, allowing them to secure their dream home without having to wait for their current house to sell.

After discussing the details with their broker, the Thompsons decided to move forward with a bridging loan.

The application process was straightforward, and because the loan was secured against both their existing property and the new one, it was approved quickly.

Within days, they had the funds they needed to put down a deposit and finalise the purchase of the cottage.

Sealing the Deal

With the bridging loan in place, the Thompsons were able to make an offer on the cottage that was immediately accepted.

They were thrilled to have secured their dream home and relieved that they didn’t have to compromise on the sale of their current property.

Over the next few months, they focused on selling their old house at a fair price, without the pressure of a looming deadline.

By the time they found a buyer, the market had picked up, and they were able to sell for close to their asking price.

The proceeds from the sale were then used to pay off the bridging loan in full.

Living the Dream

Today, the Thompsons are happily settled into their new home.

The kids have more space to play, they’ve made friends in the village, and John and Sarah feel like they’ve found the perfect place to raise their family.

Reflecting on the experience, they are grateful for the bridging loan that made it all possible.

“For us, the bridging loan was a lifesaver,” Sarah says. “

We were able to move quickly on the house we really wanted without losing out on the value of our old home.

It gave us the flexibility we needed to make our dream a reality.”

The Thompson family’s story is a perfect example of how a bridging loan can be a powerful tool in navigating the complexities of real estate transactions.

Whether you’re facing a slow property market, dealing with a property chain, or simply want to act fast when the perfect home comes along, a bridging loan can provide the financial flexibility you need to secure your dream property.

If you find yourself in a similar situation, consider how a bridging loan might help you bridge the gap and make your real estate vision a reality.

Like the Thompsons, you might discover that with the right financial tools, your dream home is closer than you think.