Bridging loan remortgage for property investor

THE SCENARIO

A property investor client recently approached Enness as he was looking to remortgage an existing bridging loan. The bridging loan was secured on a property in Hyde Park, London, and had initially been taken out to fund a complete refurbishment of the property.

The property in question was valued at £5million and he was looking to secure a loan of £3.5million, at 70% loan to value (LTV).

The client was planning to sell the property, allowing him to repay the loan, whilst still receiving a substantial profit thanks to the extensive work he has undertaken to improve the property.

Unfortunately, the works took longer than expected and the client’s current bridging loan end date was fast approaching and due to expire in just two weeks. Allowing a bridging loan to expire can leave a borrower subject to heavy fines, so it was crucial to get him moved onto an alternative mortgage as quickly as possible.

My client had tried to remortgage before coming to Enness, hoping to find a rolled up interest facility so he wouldn’t have to pay anything at all until the end of the loan term. However, the lender he approached had declined the proposition as the LTV was deemed too high.

OUR SOLUTION

However, thanks to our extensive network and knowledge of lenders, I was able to speak with an underwriter at a lender who I have a good relationship with. They agreed to provide the loan amount the client required, at a fixed annual interest rate of just 5.88%.

I also managed to arrange the loan with no early repayment charges so the client could repay the loan as soon as he sold the property at no additional charge. Furthermore, I had the new mortgage completed within the two-week deadline so my client avoided any fines associated with the original bridging loan.

This is an example of how we are able to bend over backwards to ensure our clients get the terms they require and our ability to turn deals around extremely quickly. If you are in a similar situation, don’t hesitate to get in touch. We would be happy to discuss your options.  

 

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