Utilising a historic relationship to overcome multiple complications

Loan Amount:
£1,869,000

Property Value:
£2,670,000

LTV:
70%

Brokers and borrowers alike regularly come back to us for support with their property plans. Often, this relationship can aid us just as much as it does them. Our underwriter had to support a case which had many complications. However, as we already had years of servicing the client under our belt, we built up a relationship which helped iron out the creases.

Foreign nationals based overseas approached us to raise funds and cover existing charges on a portfolio of residential properties. The first challenge emerged when it became apparent that one of the facilities needed to complete simultaneously with our bridging deal.

What’s more, there was a potential issue with one of the individuals who needed the loan. To keep this deal moving forward, our underwriter explored MFS’s history with this client.

Building relationships with clients benefits everyone

The borrowers in question came to us via a company. The client already had plenty of experience, with a vast portfolio spread across the UK. But, as they were based overseas, we performed enhanced due diligence to ensure that we had covered all bases and were comfortable to lend.

Additionally, as we had worked with them previously, we established their complicated background would not present a problem. Any potential challenges had already been worked through, laying the foundation for a smooth process.

Our underwriter could see this particular transaction was in line with the borrower’s background. Their business activities regularly involved the purchasing and refinancing of rental properties. As this case followed the same pattern, no red flags were raised.

To ensure the financials of the deal were sound, we ran affordability checks and thoroughly reviewed the exit strategy. Given our history with the borrowers, their experience in the field, and the solid finances involved, we approved the loan.

The market has little tolerance for the complicated

Having vast experience with complicated cases may prove to be a key differentiator in the current market. With the complexities at play in this case, it’s unlikely the borrowers would have had much luck with high-street lenders.

Mainstream banks have been pulling mortgage deals and tightening their criteria’s as uncertainty looms. It seems like only the most vanilla cases are seeing the light of day.

But, we’ll give even the most complicated of deals a fair hearing. We can work with poor credit histories, foreign nationals, CCJs and more. MFS has a broad range of tools and assets to support clients, including close relationships with valuers and access to multiple funding lines. There’s no lending challenge we’ll outright shy away from.

To understand why the wider market is struggling with uncertainty at the moment, check out our blog exploring the post-covid property landscape.