The bank was approached earlier this year by a broker acting on behalf of the parents of two sons who were in the process of buying a property.

The sons had exchanged contracts on the apartment off-plan in 2014 with a deposit of £1.2m, and intended to fund the remaining balance due on completion with a mortgage.

However, when the pair applied for a mortgage three years later, the lender’s valuer substantially down-valued the apartment and reduced the amount it was prepared to advance.

The parents agreed to provide the additional money needed to top up the maximum mortgage offered and, having discussed their options, decided a bridging loan would be appropriate.

UTB agreed to provide an £850,000 bridging loan secured against the parents’ main residence in west London and an investment property.

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The exit would be achieved through the sale of the parents’ main residence, which was already on the market.

The deal enabled the purchase to complete and protected the sons’ deposit.

In addition, the parents gifted their contribution to their sons having taken appropriate advice.

“Although the sums involved in this example were quite substantial, we complete many of these types of cases where a property is being purchased by sons or daughters and the parents provide additional funds and or security to help them get on the property ladder,” said Rob Love, head of broker development for bridging at United Trust Bank (pictured above).

“At UTB, we are able to structure such transactions to best suit the borrowers and, as in this case, don’t always insist on taking a charge on the property being purchased.”