Loan Amount:
£700,000
Property Value:
£4,700,000
LTV:
70%
(Second charge)
A previous client of ours returned to us when they needed to re-finance a 2nd charge loan on their commercial property. We were very happy to oblige.
We already knew the business well, and therefore knew that the owners were established and successful property investors. This meant that our due diligence and other checks were completed thoroughly, but very quickly.
The business needed to refinance their 2nd charge, but also wanted to utilise our flexible interest payment options to do some annual works needed on the security property. We therefore offered them a part retained/part serviced payment plan that met their needs perfectly.
A strong background means solid foundations
The client’s business, and their broker, were incredibly fast in providing the documentation needed and were upfront with all of the complexities of the case. The exit strategy was also strong, with proof of viability also passed to us from the outset.
This allowed us to work our magic, and we completed the case within just 4 days.
Why re-finance is on the rise
According to ONS, 1.4million households are due to renew their fixed rate mortgages in 2023. With interest rates rising multiple times in the past 18 months, and 57% of those mortgages being previously fixed at below 2%, property investors are facing much higher costs at renewal.
However, interest rates on mortgages seem to be stabilising since the disastrous mini-budget in September 2022, with many predicting that mortgage rates will continue to fall, even if the base interest rate increases. This situation seems to be encouraging property investors to ‘wait and see’ and as such, we are seeing borrowers opt for shorter term loans so that they can take advantage of predicted lower rates at the end of the year.
We are able to provide Bridging finance for a minimum of just 3 months – meaning that we can provide flexibility and optionality at a time when borrowers are demanding it the most.
