Client circumstances:
The applicants, a family unit made up of a couple and an elderly relative, found themselves in a time-critical situation. They had lived in their property, a three-bedroom semi-detached for many years, and had previously taken out a bridging loan to purchase investment properties. However, their broker’s lack of proper guidance and communication during the refinancing process left them at the risk of incurring a £10,000 default fee on the existing bridge loan. With time running out and their refinancing application with another lender still in progress, they urgently needed a solution.
MT Finance solution:
Understanding the urgency of the situation, we offered the client the option of an AVM after confirming the application met our criteria. The valuation from the AVM was received within seconds, and our underwriting team carried out all necessary checks, working closely with the broker and client’s solicitor to ensure we meet their timeline. Within three days, we issued a bridging loan of £451,848.88 at 61% LTV against the property’s £743,000 valuation. The loan term was set for 12 months.
The benefits:
Thanks to our ability to move swiftly, we provided the client with the funds they needed to bridge the gap while their refinance was going through. This prevented the default penalty from kicking in which would have had a negative impact on their refinancing prospects. They plan to exit the loan once the refinance goes through. If this happens before the end of their term, they won’t face any early repayment charges or exit fees.
Find out more:
If your client is in urgent need of a regulated bridging loan, then we are here to help. Our regulated loans are designed to be fast, flexible and versatile and is suitable for a variety of purposes, including refinancing a first charge, funding below market value purchases, preventing a chain break and unlocking equity.
Get in touch with us to find out more.