re-bridge in 5 working days, CH62
Client’s circumstances:
Our client was a property investment company who urgently needed funds to repay an existing bridging loan they had taken out on two of their residential buy-to-lets. They had already applied for longer-term finance to exit the current loan, but this was taking longer than expected. With the deadline to repay the existing bridging loan looming, it was imperative that they could secure £125,000, and fast, to ensure they didn’t face any fines or late repayment charges. This is when their broker contacted us.
MT Finance solution:
Working within a very tight deadline, the valuation was instructed immediately on 4th August, with the checklist being issued the same day. The valuation took place on the 5th and the report was received on the 8th, the next working day. Final legal documents were received on the morning of 10th August. Later that afternoon we released a bridging loan of £125,000 at 58% loan-to-value of both properties, with a cumulative open market value of £215,000. Interest was kept at 0.75% over a six-month term. In total, it took five working days to complete the bridging loan.
The benefits:
Thanks to our ability to work at speed, the client repaid their existing bridging loan before their deadline, and without incurring any late payment charges. The strong relationships we have cultivated with the solicitors, valuers and broker further helped to ensure funds were released in time. With the previous bridging loan repaid, the client can now focus on finalising long-term finance for their two investment properties, which is how they are intending to exit our bridging loan. If funds are received in under six months, they will not face any early repayment charges or exit fees.
