Mortgage Broker requiring finance for his client
UK Property Finance were contacted by a mortgage broker requiring finance for his client who needed to repay an overdue bridge. The bridge was initially used to convert a large house into 8 flats. The conversion was virtually complete but the exit had unfortunately overrun. The introducing mortgage broker was not a specialist in arranging bridging finance and not knowing the market had unfortunately placed the case with an incorrect lender who then spent 2 months processing the case, prior to rejecting.
UK Property Finance, quote on 100’s of bridging deals weekly and due to this, on the vast majority of occasions, we know quickly and exactly where to place each case. We submitted the subject deal to the most appropriate lender who surprisingly offered a 75% gross loan, using just the single property as security.
Due to the time lost prior to the case reaching UK Property Finance, the initial bridge however had now increased with additional fees and charges leaving the clients £30,000 short of being able to fully redeem even with a 75% gross loan.
Further charges equating to £15,000 were due to be added in 2 days time should the client not redeem by then.
The client had plenty of equity in his own residential property but already had a 1st and 2nd charge loan both of which had penalties if repaid within 6 months so the client preferred not to repay these. The majority of bridging loan lenders will not loan such a small sum of £30,000, particularly on a 3rd charge basis and even if they did, the chance of completing in 48 hours, would have been highly unlikely.
UK Property Finance has access to its own private lending fund via sister company, UK Bridging Loans. We were able to raise the £30,000 shortfall quickly and without the need for a valuation and as such the client was able to refinance the initial bridge, without further penalties, via the use of the funds from our top up bridge arranged on his current residential property and the new bridge across the 8 flats.
To exit the new bridge we arranged BTL mortgages on the flats plus an Equity Release mortgage on the clients own residential property which repaid the 1st and 2nd charge loans, following expiry of the penalties plus our 3rd charge bridge.
UK Property Finance are a “Whole of Market”, Directly FCA Authorised & Regulated, Master Finance Broker specialising in Bridging Loans, Development Finance & Commercial Finance. Our “Whole of Market” broker status enables us to source Bridging Loans & Development Loans from any lender in the market enabling us to provide the very best of rates.