Client circumstances:
Our client, a limited company, had previously taken out a bridging loan with a different lender to develop a multi-unit freehold block (MUFB) of three flats. With their bridging loan term coming to an end, they needed to find a way to exit onto long-term finance quickly and avoid any financial penalties for late repayment. As some high street lenders are hesitant to issue a buy-to-let mortgage on a MUFB, their broker reached out to us.
MT Finance solution:
With a hard deadline looming it was important we worked quickly and efficiently. We sent all requested documents to our underwriter before the valuation, saving a great deal of time. Unfortunately, we did encounter a slight delay when the property was down valued, but we managed to overcome this by switching to a product with a higher loan-to-value (LTV). This enabled the client to borrow the full amount they needed.
We then continued to process the application as quickly as possible, sending out the offer at 7.30pm on Friday 18th August. Just one week later, we had completed a buy-to-let mortgage of £515,760, at 74% LTV over a five-year term.
The benefits:
We didn’t let the property’s down valuation stop us! Thanks to the quick-thinking and fast-acting underwriter, we were able to switch the client to a product that still allowed them to borrow the requested amount. Not only did we meet the client’s deadline to repay their existing bridging loan, but we also completed the loan in record time. This was due to several factors, including the client’s speedy response to provide the paperwork, our dual representation and the solicitor having been instructed before the offer was produced, allowing them to do the legal work beforehand.