Client circumstances:
Our clients, a couple who are experienced property investors with an established portfolio needed urgent short-term financing. They had recently developed a part-complete residential site into two high-specification, premium new-build luxury properties. As their existing development loan neared its expiration date, they found themselves facing heavy default interest rates and extension fees and required immediate capital to exit the development lender, complete a final snagging list, and allow sufficient window of time to arrange long-term refinance.
Additionally, they needed capital to support corporate restructuring obligations linked to a separate business interest. Both borrowers had clean credit profiles with no defaults or CCJs, but they needed a lender that could move swiftly as a previously secured alternative lender had pulled out of the transaction at the eleventh hour, leaving them highly exposed to imminent default penalties.
MT Finance solution:
Following an urgent review of their application, our underwriting team took a common-sense approach to expedite the process. Having completed all necessary checks, we accepted and retyped an existing valuation report, significantly saving both time and cost. We then issued a first charge bridging loan of £2,642,500 at 0.89% per month with an 11-month term.
The case was classified as unregulated because the first charge was raised against investment property, and the clients maintain a substantial BTL portfolio. The transaction progressed from the initial inquiry to full completion in 5 working days.
The benefits:
This rapid turnaround allowed the borrowers to seamlessly exit their expiring development loan, protecting them from punitive default rates and costly extension fees. The properties maintain a strong combined projected market rental income which provides a highly robust and credible exit route onto a permanent buy-to-let refinance structure.
Find out more:
Is your client in need of an urgent unregulated bridging loan? Our ability to review complex cases and move at speed ensures swift lending decisions for your clients. Simply fill out this online form and we’ll be in touch with you soon.
