Moving to a new home should feel like progress. For a Hampstead professional, it was — but the timing created a real problem. He had found the property he wanted. He hadn't yet sold the one he already owned. An interest-only mortgage for a simultaneous property purchase, structured around his existing assets, would be the solution. The question was finding a lender willing to offer it on terms that made financial sense.
What was the situation?
A Hampstead professional had identified an apartment he wanted to buy in NW3. The property was valued at £2,475,000, and he needed a loan of £1,700,000 to complete the purchase.
The complication was straightforward in theory, harder in practice: he still owned his family home, which he intended to sell — but not necessarily before he needed to exchange on the new property. He wanted to move on his own timeline, not one dictated by the synchronisation of two transactions.
Regulated bridging finance was one option. He ruled it out. Bridging loans carry arrangement fees, higher rates, and a pressure of their own. He wanted something more sustainable, more flexible, and far less expensive to exit.
What was the challenge?
The core challenge was finding a lender who would advance £1,700,000 on an interest-only basis, using the equity in the client's existing residential property as the repayment vehicle — and do so without locking him into punishing early repayment charges.
Most high-street lenders apply strict criteria to interest-only applications of this size. Demonstrating a credible repayment strategy is non-negotiable, and not every lender accepts the future sale of an existing property as qualifying evidence. The pool of willing lenders narrows further when the borrower wants the freedom to repay as soon as a sale completes.
The process also ran into significant delays. Defects in the lease on the new property had to be identified, negotiated, and legally resolved before exchange could take place. This extended the timeline considerably and required patience on all sides.
"The service provided by James Blackler at Oakstead Finance was absolutely exemplary. James successfully obtained two mortgage offers for me which met my needs. This was done in a very timely way, with the minimum of fuss. James has many years of experience in this business, and it certainly shows. He was extremely patient and clear throughout — able to explain not only the main outline of what needed to be done, but also the technical details around the terms and conditions of mortgage offers very clearly and simply. I thoroughly recommend James's service at Oakstead Finance."
What did we do?
Oakstead reviewed the full market for lenders whose interest-only criteria could accommodate this specific repayment strategy. The existing residential property represented substantial equity, and the priority was identifying lenders who would accept its planned sale as a credible and compliant repayment vehicle.
Two mortgage offers were secured. The client had options. That matters: it meant the decision wasn't forced, and the terms could be compared rather than simply accepted.
The products were structured so that once the existing family home sold, the mortgage could be repaid in full without triggering any early redemption penalty. The client was not on the clock. He could sell when the time was right, not when the lender required it.
Throughout the lease delays, Oakstead maintained close contact with all parties, keeping the case moving and the client informed at each stage.
What was the outcome?
The client was able to focus on other aspects of their move without having to co-ordinate their sale with the new purchase — the pressure of a synchronised transaction was removed entirely.
The interest-only structure gave him breathing room. When his existing property sold, he repaid the mortgage cleanly, without penalty. Two offers had been secured; he chose the one that best suited his position.
If you are considering a purchase before your existing property has sold and want to understand what interest-only options may be available to you, Oakstead can search the whole market on your behalf. Arrange a consultation with Oakstead Finance.
