COVID-19 Withdrawal Regulated Bridging Loan
Replacement 1st charge regulated bridging loan following the withdrawal from the market of the initial lender due to COVID-19. Our clients were looking to borrow £551,600 to purchase a new residential property for £520,000; the remaining balance was to be used to cover the cost of stamp duty and other fees.
The clients’ current residential property was valued at £674,000 and had no outstanding borrowing. Both properties were to be used as security, giving the clients the financing they needed at the best possible rate. The clients requested free legal fees and a free valuation if possible.
Due to our premier status, UK Property Finance was able to access the best possible rate available in the market for our client’s requirements. The loan documents were completed during a collection agent visit the day after the initial communication with our client, and a scanned copy of the case was submitted to the lender without any delays.
The case was well into the underwriting phase when the initial lender made the decision to put the case on indefinite hold due to the COVID-19 pandemic. The clients still wanted to proceed with the purchase, so UK Property Finance managed to obtain a new lender agreement that matched the initial terms. The vendor and the estate agent were very anxious to complete the sale, so everything possible was done to help ensure that we met expectations.
With our COVID-19 contingency plans fully up and running, UK Property Finance were still open for business, and our dedicated advisor and processor were able to impress the urgency of this loan with our new partner lender, who agreed to process the case by using a rewrite of the initial valuation and refining legal proceedings, meaning minimal additional cost to our client and a much quicker completion. The initial lender’s withdrawal was in no way a reflection on the client or indeed UK Property Finance, but as a gesture of goodwill, UK Property Finance offered to help with the cost of both the legal and valuation fees.
By this time, UK Property Finance’s processing team was working remotely, but they submitted the case in the middle of the lockdown and chased the underwriting multiple times daily to ensure service levels remained at our normal high standards and that any obstacles were successfully overcome as soon as they were encountered. With our continuous involvement, the case moved smoothly to offer, and during the legal phase, the team liaised effectively with all parties to achieve completion within 12 working days.