Initial circumstances: Client required a £186,000 bridging loan to convert a semi-commercial property into a house in multiple occupation (HMO) and had a specified completion date. The client wanted to take advantage of the demand for HMO and time was running out on its completion. He needed the funds to pay the developers and expedite the work on the property.

mtf solution: We were able to provide him with a second charge loan of £186,000 at 59% LTV, based on an open market value of £1.5 million. Interest was retained at 0.89% per month, over a 12-month term without exit fees or ERCs. We didn’t require any personal guarantees.

The benefits: With our bridging loan, the client was able to access the funds needed for the conversion. The client received the funds from us within the specified time. More importantly, the client was able to pay his contractors and work on the property continued. The client plans to sell the property within 90 days of work completion at a higher valuation.