Loan Amount:
£800,000
Property Value:
£1,150,000
LTV:
70%
Speed is often the most crucial element needed in property investment. Especially where multiple refinances are coming together at once. A property investment company had purchased several residential units in a single building, but were facing pressure from an existing charge nearing its term.
The race was on to provide a refinancing bridging loan to cover this and ensure the borrowers plans weren’t slowed down. This was made even more complicated by the fact that the underlying clients resided overseas.
To make sure everything aligned, our underwriter got to work.
Supporting borrowers investing in multiple units
As the borrowers were foreign nationals, we explored their background and credentials to ensure the funding would be in safe hands. We could see the borrowers already held a number of financial assets which could support this deal, should anything unexpected come up.
Additionally, the units owned were in good condition, and held a lot of potential. There was no structural or refurbishment work needed, which could have raised the chances of delay.
The borrowers also had plenty of experience in property investment, with a portfolio of assets under management. They were already in talks with several banks to implement long-term finance and as such, we were comfortable enough to provide short-term funding.
Refinancing can be stressful
Refinancing strategies have come into focus in recent months due to the ongoing cost-of-living crisis. As inflation went up, so too did interest rates. Mortgage and debt products became expensive to service, while mainstream lenders shied away from an uncertain market.
This has all filtered through to the property market but where investors are nervous about their options, we’ll be there to offer security. We remain committed to speed and flexibility, regardless of how the wider economy is coping.
Further reading:
- Featured Product: Refinance Bridging Loan
- Tool: Bridging Loan Calculator
- Report: The Race to Remortgage
- Guide: The MFS Guide to Student HMO Property Investments
- Blog: What are exit strategies? Everything you need to know
- Blog: When will the cost-of-living crisis end and is there anything you can do about it?
