BTL Mortgage + 2nd Charge Bridging Loan for an MUFB, LL13

Client circumstances:

Our client, a limited company, sought long-term finance for an MUFB. They had taken out a bridging loan elsewhere to fund the purchase and a subsequent refurbishment, but this loan was now due for redemption. They had an exit in place. However, it turned out there was a shortfall, and they were now facing £17,000 in penalties.

In addition, the client required a second charge bridging loan on their main residence to complete the final stages of refurbishment on the MUFB. Therefore, the bridging loan needed to be completed simultaneously with the buy-to-let mortgage. Due to the urgency and our ability to assist with both elements, their broker immediately contacted us to step in.

MT Finance solution:

With less than four weeks to complete the transaction – our underwriters quickly got to work. A Red Book valuation was instructed for the BTL property, and thanks to the strong relationships we have with our professional partners, we received the report within three days. We issued a BTL mortgage of £390,600 at 75% loan-to-value of the property’s confirmed value of £500,000. The term was set for 15 years.

Meanwhile, our bridging team processed the bridging application and issued a £315,000 second charge bridging loan on the same day, as requested by the client. The LTV was 54% and the term was set for 18 months.

The benefits:

Thanks to our ability to move quickly and prioritise, we were able to meet the client’s requirements and issue a buy-to-let mortgage and a second charge bridging loan simultaneously, and before the client’s deadline. This allowed them to complete the refurbishment on the MUFB and repay their existing bridging loan, avoiding the £17,000 redemption penalty. The clients now have a long-term investment loan that will allow them to generate profitable income from the MUFB.

Find out more:

If you would like to find out more about our buy-to-let mortgages or bridging loans then we’d love to hear from you. Simply fill out our online form and we’ll be in touch with you soon.