Market Financial Solutions has completed a Bridge Fusion loan to support the purchase of a commercial hotel, enabling the borrower, who was new to the hotel sector, to acquire and begin operating the asset ahead of a planned refinance onto a longer-term commercial product.
The borrower was purchasing the hotel to run themselves and required a funding solution that would allow time to build operational experience before refinancing. Working alongside the broker, Market Financial Solutions structured the deal using its Bridge Fusion product – a hybrid of a bridging loan and a buy-to-let (BTL) mortgage and better aligned with the borrower’s exit strategy than a standard commercial bridging loan.
While the borrower did not have direct experience in the hotel sector, the deal was supported by their strong background in the wider BTL market, as well a clear business plan and evidence of profitable trading.
This allowed the underwriter to take a pragmatic view of the case and assess the opportunity beyond sector-specific experience. As part of the underwriting process, the lender also reviewed the financial forecasts and the hotel’s online ratings, which demonstrated ongoing demand.
The transaction was completed at pace, with Market Financial Solutions finalising the legal process within just two weeks. The loan completed at £455,000 at 65% loan-to-value (LTV).
Paresh Raja, CEO at Market Financial Solutions said: “This deal highlights our ability to take a flexible approach to underwriting and structure finance around a borrower’s longer-term plans, even where the circumstances of the borrower presents an added layer of complexity.
“While the borrower was new to the hotel sector, they presented a strong proposition, supported by relevant experience, a clear business plan and compelling evidence of the asset’s potential. Importantly, there was also a well-defined exit strategy onto a longer-term product.
“Crucially, combining key elements of our BTL and bridging offerings, our unique Bridge Fusion product gave us the ability to provide the additional time needed to support that plan, while still delivering the loan within a tight timeframe.”
Get in touch with our team to learn more: info@mfsuk.com or 020 7060 1234.
