Urgent auction purchase in six working days, E6
Client circumstances:
Our client, a property development company, had placed the winning bid on a residential auction property and had paid the 10% deposit. They had approached another specialist lender, but they were progressing too slowly and the initial 28-day deadline to pay the final balance had already been missed. Our client had managed to negotiate an extended completion date with the seller without incurring any late payment fees but with this fast approaching, they urgently needed to secure additional funds. This is when their broker got in touch.
MT Finance solution:
With the client’s deadline only a matter of days away, we quickly got to work. As soon as our underwriters received the case, they instructed both the valuation and the solicitor. The costs undertaking were received the same day and two working days later we received the valuation report. Security documents were issued for signature that afternoon. We received the final legal points within three days. That same day we issued a first charge bridging loan of £375,500 at 70% loan-to-value of the property’s open market value of £470,000. The term was set at nine months.
The benefits:
Our ability to complete a first charge bridging loan within six working days of our underwriters receiving the case ensured that the client met their extended deadline and didn’t incur any financial penalties. They will now be able to undertake some light cosmetic works before refinancing out of our bridging loan onto a traditional buy-to-let mortgage. If this happens in less than nine months they won’t face any exit fees or early repayment charges.
Find out more:
If you’re considering purchasing a property at auction then we can help. With lending decisions made within hours of enquiry, funds can often be released in a matter of days. We’re even able to provide you with an Offer in Principle prior to an auction, further speeding up the process. Get in touch with us today to find out more.
