Client circumstances:
Our client was in the process of buying their dream home. Contracts had been exchanged but then their bridging finance lender let them down at the last minute. As they had only recently (early 2022) been appointed as the sole director of their own company and didn’t yet have two years of accounts, they were finding it difficult to secure finance at a favourable rate and at such short notice. Determined to prevent a chain break, their broker reached out to our regulated bridging team.
MT Finance solution:
We received the case on 27th September and quickly got to work. We were able to save our client time and money by accepting a retype of the valuation report that had already been compiled for the previous lender. Legals were quickly underway and finished on the 6th of October and we completed the first charge regulated bridging loan of £606,200 that afternoon. The loan-to-value was 58% of the property’s open market value of £1,050,000 and a term of 12 months was set. As with all our bridging loans, there are no exit fees or early repayment charges should the client wish to repay early.
The benefits:
By completing the regulated bridging loan in only eight working days, we ensured that our client could purchase their dream home. What’s more, the 12-month term will give them enough time to secure a high street mortgage, allowing them to exit out of our bridging loan. By this point they will also have over two years of accounts which should help them to secure a more favourable long-term rate.