A three-bedroom semi-detached house in Andover, Hampshire, has been purchased for £255,000 using bridging finance at 80% loan-to-value, marking the first completed transaction between Loans Warehouse and Castle Trust Bank.
The property investor, who operates through a limited company and has a background in building, acquired the house which required substantial refurbishment work that precluded conventional buy-to-let mortgage financing at the point of purchase.
Loan structure and timeline
Castle Trust Bank structured the transaction as a 12-month first-charge bridging loan at 80% LTV with a monthly interest rate of 0.73%. The facility delivered a net loan exceeding £200,000 against the £255,000 purchase price, allowing the borrower to maximise day-one funding without requiring refurbishment costs to be retained or released through drawdown.
The transaction, managed by Ryan Johnson, progressed from full application to completion within weeks, meeting the contractual deadline of 17 July. Castle Trust approved the Certificate of Title and released funds at 12:20pm on completion day after several legal requirements were resolved in the final hours.
Refurbishment plans and exit strategy
Planned works include replacing the conservatory, installing a new kitchen and bathroom, and general redecoration. The investor intends to finance the refurbishment separately from personal resources before retaining the property as a buy-to-let investment with anticipated monthly rental income of approximately £1,500.
The property is expected to reach a post-works value of approximately £325,000. A buy-to-let mortgage offer with retention is already in place as the exit route once works are complete, which comes at a time when mortgage lending practices face increased scrutiny.
According to Anna Lewis, commercial director property at Castle Trust Bank, the teams worked together to achieve swift completion and anticipate potential hurdles in advance. Vikki Edwards, head of bridging and development at Loans Warehouse, noted that access to a broad lender panel enabled the client to maximise day-one funds whilst using personal resources for refurbishment.
Market context
The transaction reflects continued demand for bridging finance among property investors seeking to acquire properties requiring refurbishment that fall outside standard mortgage criteria. The high LTV offering at 80% provides investors with leverage whilst maintaining personal capital for renovation costs, a structure that may appeal to experienced developers working within the evolving buy-to-let sector.
