case studies

auction purchase + refurb, SN1

Client circumstances:

Our client was the winning bidder on a mid-terrace property in Swindon, valued at £135,000. The client needed £94,500 to complete the purchase, with a portion of the funds going towards some light refurbishments. Time was quickly running out and the client only had 14 days left in which to complete the purchase.

They needed to act quickly or faced losing both the property and the deposit they’d put down at the auction. As speed was of the essence, the client’s broker came to MT Finance to help secure a first charge bridging loan to complete the purchase.

 

MT Finance solution:

Within a few hours of receiving the initial enquiry, our team instructed the valuation and issued the checklist of legal requirements to the client’s solicitors. The property was inspected by the valuers the next working day and we received the valuation report within 48 hours. In just under two weeks, we released a £94,500 bridging loan to the client, at 70% LTV of the open market value.  As the loan was under £100,000- our standard rate of 0.95% was applied, over a 12-month term.

It was due to our strong working relationships with the broker, solicitor, and valuer – as well as the dedication of our case managers and underwriters – that we were able to complete this purchase well within the client’s deadline.

 

The benefits:

Our bridging loan ensured that the client did not lose the investment property or their deposit. The 12-month term will give them enough time to add the necessary refurbishments and increase its value before refinancing out of our loan with a traditional buy-to-let mortgage. As we don’t charge any early repayment or exit fees, the client has the option of paying the loan in less time, without incurring any additional costs.

 




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