Client circumstances:
Our clients were looking to raise capital to help grow and expand their legal business. With their finances tied up in other investments, they urgently required a quick fix which they were planning to fund by releasing equity from one of their holiday lets which was unencumbered. Knowing that they needed to secure this as quickly as possible, their broker approached us.
MT Finance solution:
Understanding the need to move quickly, our underwriters assessed the case as soon as they received it and a valuation was instructed the same day. This was carried out on the next working day and the report arrived two days later. Meanwhile, solicitors had been instructed in the interim and we received the final legal documents nine days after the underwriter got the enquiry. Later that day we released a first charge bridging loan of £344,000 at 60% loan-to-value of the property’s open market value of £575,000 over a 12-month term.
The benefits:
Our ability to issue a bridging loan in only nine working days ensured that the clients could quickly facilitate a capital injection into their business. This will allow them to grow their company. The 12-month term will give them ample time to refinance out of our bridging loan onto a holiday let mortgage. If this happens before the end of their term, they won’t face any early repayment charges or exit fees.