Bridging loan for property developer with adverse credit & little proof of income

THE SCENARIO

A client recently contacted Enness as he required a bridging loan in order to be able to complete a property project in Kent. He previously purchased the project last year at auction, yet had found himself strapped for cash after refurbishing a different property based in Kensington.

Having to stretch his funds further than expected on the previous project, he now needed to borrow £300,000 at 65% loan to value (LTV) to be able to complete the Kent project.

We were confident in our ability to secure the short-term finance necessary, however, there were a few additional challenges that came with this client’s situation. Firstly, he had just set up a new property company and so had no proof of income for the last two years.

This was a problem to almost every lender on the high street, as they usually come with a minimum requirement of one to three years’ worth of accounts when calculating affordability, and certainly would not accept no proof of income at all.

On top of this he also had some adverse credit, which is almost always an immediate no-go in the eyes of a lender.

OUR SOLUTION

After the initial telephone conversation with this client, we invited him for a sit-down conversation where we could discuss his options face to face and gain a better understanding of his requirements. Having done so, we were then able to use our vast network of connections to source the right lender and pitch the client’s situation in the best way possible.

We managed to source terms that allowed him to complete the works in Kent and arrange the necessary finance at a rate of just 0.9% per calendar month.

The client was extremely happy with this result and recently called back for our help with another site he is interested in.





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