Client circumstances:
Our clients, a retired couple and experienced property investors, had previously taken out a bridging loan with us to fund improvements on their home of 36 years which they intended to sell. However, the renovation works took longer than anticipated, running over schedule and budget.
With their existing loan coming to term, and the property still requiring finishing touches, they found themselves in a difficult position, needing approximately £151,000 to refinance the existing debt and complete the improvement works.
MT Finance solution:
The case presented some complexity; while the clients had maintained clean credit in recent years, their history showed previous late mortgage payments and defaults. These factors meant traditional high-street lenders were unable to assist. Recognising the urgency and intricacy of the situation, our team got to work immediately.
Following a careful review of the situation with significant equity and a clear exit strategy in place, MT Finance structured a second charge regulated bridging loan of £181,784. This was set at 43.65% LTV against the property’s £2,000,000 open market value. The facility was arranged over a 12-month term, with the legal process completed in just eight working days.
The benefits:
Despite the clients’ previous credit defaults, our common-sense approach to underwriting allowed us to look past issues that would have seen the application rejected elsewhere. By issuing a second charge bridging loan with exceptional speed, the clients were able to repay their existing loan without incurring default charges and now have funds to complete their home improvements.
The 12-month term provides the clients with the necessary breathing space to complete the works and finalise the sale of the property, which is already on the market. Once sold, they intend to downsize to a smaller home within the same area.
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. Lending decisions are made very quickly, and funds can often be released within days. Simply fill out this form and we will be in touch.