Lending where others can’t: Large loan to assist an overseas client recover from a lender withdrawal

recover from a lender withdrawal

Loan Amount:
£3m

Property Value:
£4.285m

LTV:
70%

Initial circumstances

One of our returning brokers came to us regarding an offshore client who needed a bridging loan to purchase a residential property situated in London. The client had intended to purchase the asset through another lender. However, at the very last moment, the lender pulled out after their KYC searches flagged the applicant as a PEP. This left the client stranded, without finance, just before they were due to close their deal.

After looking through the legal pack, provided to us by the broker, we knew that we would be able to assist their client. This would then ensure that they didn’t lose their investment property or their deposit.

MFS Solution

The valuation report that we received from the previous lender had lapsed. We agreed to use the same valuer to keep the cost down for the borrower. Due to our good relationship with the valuer, we liaised directly with them to explain the circumstances. We were then able to obtain the valuation report within 2 working days. This was instrumental in reaching the client’s deadline.

The client was looking to purchase the property through a company that consisted of multiple directors, all of whom were within different countries. This added complications to the time constraints of the case. Therefore, our BDM configured several ways to minimise wasted time.

The BDM was able to organise legal advice to be provide over webcam, with lawyers present. Being able to provide legal advice over a video call ensured we kept within our working timeline. The loan was drawn down and the client was able to complete within the timeframe, leaving them incredibly satisfied with our service.

The Benefits

Transparency is key when it comes to bridging finance. Underwriting from day one, providing us with the confidence to agree to terms because when we say yes – we mean it. This provides our brokers with the assurance that once agreed, their client has a guaranteed deal will not be retracted or changed at any point.

All our deals will receive a dedicated MFS contact to build up a consistent BDM and underwriter relationship. This is to ensure that the client remains updated and made aware of what is happening at each step of the process.

As specialists in complex lending, we’re able to work confidently with complicated situations, such as working with PEPS. Our extensive experience and know-how to deal with different circumstances rests with our criteria’s flexibility and 15-year industry experience. Our longstanding partnerships with valuers and vast legal panel also means that we can met tight deadlines – providing ease for both the broker and borrower.