Meeting a tight deadline to clear adverse credit and avoid additional charges

case study residential property

Loan Amount:
£715,000

Property Value:
£1,410,000

LTV:
71%

Initial Circumstance

One of our current clients were coming to the end of their second charge loan against their buy-to-let portfolio. Their assets are located within London and Letchworth. The client had been ready to exit their loan after securing a buyer a few months prior. However, due to unforeseen circumstances, the sale fell through at the last minute. As this was just before the end of their term, they risked going into potential default.

To help the client overcome any potential additional default charges, we liaised with their broker to find a fast solution. We knew we would be able to refinance their bridging loan with us before the charge’s deadline. The client was happy to go ahead with the loan and secure additional breathing space to find a new buyer.

MFS Solutions

Sonal Kavri, our dedicated underwriter assigned to the broker, began the underwriting process immediately, knowing speed would be crucial. Upon valuing the property, it appeared there was minor damage to the asset which would need fixing. However, due to the current market, the value of the property had increased significantly. This meant the client could raise additional finance to cover the costs of the building works. With the loan moving quickly, the works were under way during the process of organising the loan.

The client already had a first charge in place with another lender, which meant that we had to place a second charge on the property. Due to the valuation report showing increased property value, and our ability to look at the client and their credibility, we were comfortable that a second charge would not place us at too high a risk. By working alongside the broker, our underwriter was able to meet the necessary deadline and clear the adverse credit. Both the broker and client were happy with our flexibility, speed and reliability, working around the clock to meet the tight turnaround time and overcome complications.

Benefits

We understand that situations can be outside our client’s control. As such, we aim to ensure all our borrowers are provided with the best solutions for their financial needs. Throughout this case, our underwriter worked to reduce the stress of the situation for the broker and their client.

Our expert underwriters work hard to provide support through our flexible products and extensive industry knowledge to overcome unforeseen complications. By taking on all the heavy lifting, they lighten the load across the board and make sure deadlines are met.

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