Client circumstances:
Our client was facing imminent repossession of their property after defaulting on an existing bridging loan they had taken out for business purposes. The property, a residential asset valued at £1,300,000, was at risk of being seized, which would have prevented the borrower from executing a sale on favourable terms. With bailiffs already at the property, this was a critical time-sensitive situation that required immediate action. With traditional lenders unable to respond to the urgent timeline, a swift bridging solution was essential to halt the repossession proceedings.MT Finance solution:
Understanding the critical nature of the timeline, the team acted with exceptional speed. With only a slim window of opportunity available before the bailiffs could secure the building and remove access, we immediately instructed a valuation on the property the same day we received inquiry. This allowed the underwriting team to progress the application while the borrower still had access to the property. Following all legal checks, we were able to provide a £600,000 bridging loan at 65% LTV over a 12-month term, with an exit strategy focused on the sale of the security. This enabled the borrower to repay the existing lender immediately and regain control of the property while giving them sufficient breathing room to sell the property on their own terms.The benefits:
Our ability to move with exceptional speed stopped the repossession proceedings, allowing the borrower to repay the original lender and regain access to the property. The 12-month term provides a stable window to execute the exit strategy. This allows the borrower to sell the property on the open market rather than face a forced sale.Find out more:
If you would like to learn more about our second charge or refinance bridging loans, we’d love to hear from you. Either email enquiries@mt-finance.com or fill in our online form and a member of our team will be in touch.