Speed is critically important in bridging finance. It is what makes bridging finance a fundamentally useful tool for those who need to raise funds within a short time frame.
As an example, MTF was recently approached by applicants who had exchanged contracts in 2013 to purchase an investment asset in Southwark, London, off-plan from a developer for £836,000.
As the development reached practical completion a Notice to Complete was served by the developer, with a strict time clause requiring completion by 8th May, failing which the deposit would be forfeited and the developer would be free to sell the newly completed property at a higher value on the open market.
Due to the time-sensitive nature of the loan, the applicants were unable to secure a BTL mortgage. Faced with roughly a week within to complete the purchase the applicants approached MTF. On receipt of the enquiry on 24th April we were able to give an immediate decision, and issued the offer of loan that day. Our team worked around the clock to organise the valuation and so as to ensure the legal formalities were addressed.
With 2 days to spare MTF provided a £480,000.00 bridging loan based on an open market value of £836,000, with no exit fee or early redemption penalty. What’s more, we managed not only to save the borrowers from losing the apartment, but equally losing their £50,000 deposit.
By taking out the bridging loan, the applicants were given the time and breathing space to obtain a buy-to-let mortgage at the right level.
There are a number of situations an applicant will be presented with a very narrow window of opportunity. For example, a borrower whose mortgage lender has let them down at the last minute, a landlord trying to secure a property at auction, those facing repossession or a business owner who has a tax bill to clear quickly.
Whatever the situation, we enjoy being given the opportunity to provide a solution. Why not give us a call on 0203 051 2331 or enquire online to see how MTF could help.