Loan Amount:
£310,000
Property Value:
£440,000
LTV:
69%
A financial history can be a complicated thing. An investment journey rarely goes smoothly from start to finish. We understand this at Market Financial Solutions, but that doesn’t mean issues in a borrower’s background won’t threaten to slow down a deal.
A borrower required refinance to cover an existing facility, as well as other outstanding debts. There was a lot to cover, but our underwriter got to work.
While most of this case’s potential issues had already been addressed by the time they approached us, there was one remaining concern which risked derailing the investment. We worked quickly to make sure it was resolved.
Finding a way forward
An outstanding, external bill needed to be addressed before the borrower could move forward with their investment, and part of our funding was to be used for this. The borrower planned to move onto long-term finance for the exit strategy, but this would be hard to do unless it was cleared.
We saw that the borrower would only be able to move onto their exit strategy if they organised their debts. As such, we put plans in place to ensure their main obligation would be covered.
With the borrower’s external liabilities covered, coupled with the underlying asset’s strengths, we were able to issue the capital required.
Specialist finance for those with complicated backgrounds
For those with existing, complicated obligations, it may prove difficult to obtain new finance in the current market. Indeed, recent Bank of England figures showed a small dip in mortgage approvals. Uncertainty is lingering in the market, and those with complex financial histories may make mainstream lenders nervous.
This is where specialist finance has a crucial role to play however. At Market Financial Solutions, our products are there for property investors who may have existing facilities to be covered, missed payments to their name, or CCJs that are affecting their credit score.
We remain happy to hear from borrowers with led-than-ideal backgrounds.
FAQs
Can I refinance existing loans against my property while investing in something new?
Yes, we specialise in that. We can provide for multiple purposes like refinancing an existing facility and raise capital for a commercial investment at the same time. We will work closely with the client to understand all of their outstanding obligations, structure a loan to cover the existing charge and release additional funds for the new deal. Our underwriting team ensures clear and prompt coordination with all parties including legal advisors to ensure a smooth process.
Do you provide second-charge funding if I already have a mortgage?
Yes, we do. We can lend against a property that already carries first-charge debt. Our second-charge bridging solutions allow you to release additional capital without needing to refinance the entire mortgage. We would liaise with your existing lender, comply with their requirements, and structure the loan accordingly.
What’s your approach when multiple existing charges are involved in a new loan?
When there are several existing liens or debt facilities in place, our underwriters manage the complexity internally. We would analyse and prioritise each charge, confirm whether insurers and solicitors are aligned, and ensure the loan terms accommodate all encumbrances. With that detailed oversight, we could go ahead confidently.
