Client circumstances:
Our client required a quick turnaround to complete the purchase of a buy-to-let property. He had been let down by his BTL lender, who had withdrawn a previously agreed offer, due to changes in their lending, caused by Covid’s impact on the market.
MT Finance solution:
Even with the tight turnaround, we managed to step in and within 14 days of the offer going out and just two days after the valuation report was received, provided a £378,000 bridging loan.
Funds were secured by way of first charge at 58% LTV, based on the open market value of £650,000. Interest was retained at 0.85% over a 12-month term, with no early repayment charges or exit fees.
The benefits:
The quick release of funds meant our client was able to complete the purchase of the buy-to-let property within the required timeframe. The 12-month term will give the client enough time to source refinance with a BTL mortgage lender, enabling him to redeem our short-term loan.