Client circumstances:
Our client – a successful professional sought to refinance their well-maintained period property valued at £3.3 million. They needed to repay an existing bridging facility and refinance onto a more sustainable long-term solution.
Despite having a strong income as a Managing Director of a professional services firm, with additional substantial rental income from the property, they were unable to access traditional high-street lending due to a combination of rental stress and historical credit issues. Having initially approached another lender, with valuations done already, the client decided to contact us instead as they needed a lender who could move with speed owing to time constraints and the loan size.
MT Finance solution:
MT Finance got to work immediately, taking a common-sense approach to reviewing the client’s unique circumstances. Following a holistic assessment of the situation, we provided the client with a tailored solution. Our ICR testing confirmed the rental income exceeded the required 125% ICR threshold. Their additional annual earnings all pointed to a strong indicator of serviceability. Having completed all necessary checks, we accepted the initial valuation report through a retype arrangement, saving time and costs. We issued a loan of £2 million at 67.80% gross loan-to-value of the property’s confirmed value of £3,300,000.00 the term was set for 25 years.
The benefits:
Thanks to our flexibility and common-sense approach to underwriting, we were able to issue an offer in four weeks from FMA. This solution provided long term stability for them allowing them to refinance their existing bridging facility of £2 million.
Find out more:
If you would like to find out more about our buy-to-let mortgages or bridging loans, then we’d love to hear from you. Simply fill out our online form and we’ll be in touch with you soon.