Initial circumstances: Client required £2.5 million to redeem an existing 2nd charge that was coming to the end of its term, on her £8.5m home. The client was part way through refurbishing an investment property but the process had been delayed. She didn’t want to remortgage as she intended to sell the investment property once the refurbishment works were complete and didn’t want to be penalised for early repayment.
mtf solution: In just 12 days, mtf provided a £2.5 million second charge bridging loan at 39% LTV. Interest was retained at 0.92% over 12 months, with no exit fees or early repayment charges. No personal guarantees were required.
The benefits: Our bridging loan meant the client was able to redeem her existing second charge, giving her time to carry out the works in order to significantly increase the value of her investment property. The client will sell the investment asset to exit the bridging loan, against a higher value.