Our client had placed their home on the market, accepted an offer and began to look for their new home in their preferred school zone. They made an offer, which was accepted, but were then gazumped. They found another house, had their offer accepted, but then lost their buyer. In the meantime the original home had come back to market (the gazumpers had been unable to arrange finance) and the clients made a new lower offer with the condition that they would exchange in a maximum of 15 working days.
Funding Requirement: the only way this could be facilitated was to arrange a chain break bridge so the clients could exchange on their new purchase. The loan would then allow the clients time to sell their current house and repay the bridge.
Facility Provided: we were able to structure a facility at 65% of the value of the current home to repay the existing mortgage and the additional funds for the deposit. The same lender was then able to lend 70% of the value of the new purchase to allow for the completion with no minimum loan term of tie-ins so that repayment could take place as soon as the clients sold their existing residence.