2nd Charge to fund works, CM16
Client needed funds to complete works on their investment property but their lender had unfortunately pulled funding on the day their loan was due to complete. The client’s broker approached MT Finance to see if we could step in.
MT Finance solution
As soon as we received the case, our underwriters were straight on the phone to the client’s solicitor to see how we could find a solution to the social distancing issue. We accepted a document witnessed by a third party- which we had couriered over from the client to his lawyer. We also had one of our regular solicitors on standby, should we require anything further.
We were able to accept a retype of the valuation report from the previous lender, supported with an audit from one of our panel surveyors. In just 3 days, MT Finance provided a £490,000 second charge bridging loan over the client’s investment property, at 65% LTV of the open market value. Interest was serviced at 0.75% over a 24-month term, with no exit fee or ERCs. No personal guarantees were required.
Our short-term loan gave the client the funds he needed to carry out the works in order to significantly increase the value of his investment property. He then sold the investment asset against the higher value, enabling him to repay our loan and enjoy a substantial profit.