Client circumstances:
Our client had agreed to purchase a property at auction as she wanted to add value to her current portfolio. However, she had been served a notice to close the sale and was under increasing pressure for a quick turnaround of funds, otherwise she faced losing her deposit. The client required £45,500 to complete the purchase and make renovations to the property but was unable to opt for a buy-to-let mortgage as the property was deemed uninhabitable. As time was quickly running out, the client’s broker got in touch with us right away.
MT Finance solution:
In just under two weeks, MT Finance provided a £45,500 bridging loan, based on 65% LTV of the open market value. As the loan was under £50,000- our standard rate of 0.95% applied. The client also opted for serviced interest over a 12-month term. There were no exit fees or ERCs, and no personal guarantees were required.
The benefits:
The client was able to complete on the auction purchase by the deadline, saving her deposit. What’s more, the 12-month term will give her enough time to add the necessary refurbishments and increase its value before refinancing out of our loan with a buy-to-let mortgage.