A borrower in need of funds for their business – and not to invest in property

Loan Amount:
£850,000

Property Value:
£16,250,000

LTV:
26%

Bridging loans are often used for the purchasing of additional property, but they can also be used for a vast range of investments. A broker contacted us with a client who needed finance quickly to support his company.

The client in question needed funding asap for business purposes and as such, high-street lenders were unlikely to provide what was needed in time.

With no additional property purchase involved, our underwriter had to assess the client’s background fast to ensure there was a solid foundation for the loan and its exit strategy.

Doing everything possible to make sure loans are issued on solid foundations

The client was seeking a 2^nd charge loan secured against their main residence. Being a high net worth individual, the client had many assets to support their application but in going the extra mile, we examined the wider market to ensure the deal was as sound as possible.

Residential properties in the local area were examined to ensure the valuation was accurate. By looking at the price per square foot, we could see the client’s property value matched what was seen within the mid 2021 to 2022 valuations.

For further security, our underwriter worked with the client to get a breakdown of what the money would be going into, to make sure the business plan made sense. During the legal process, he worked with the borrower’s solicitor for confirmation that the proceeds of the loan would be used for the intended business goals and nothing else.

With a solid refinance exit strategy in place, along with the client’s strong financial background, we were comfortable in getting the funds issued quickly.

Speed has rarely been more important than it is now

The ability to act quickly is important across the financial spectrum. Finding an investment opportunity at a good price can be difficult to say the least and even where they are found, they’re unlikely to stay cheap for long.

This is especially true for property. In some parts of the UK, one in five homes are being sold within two weeks of being listed. Investment hotspots are feeling the brunt of this rapid demand. London, Bristol and the entire East of England are all seeing a substantial number of homes selling incredibly quickly.

With this in mind, it’s no wonder borrowers are turning to specialised finance for their investments. Here at MFS, we could have funding issued in as little as three days. If you need to jump on an opportunity asap, why not give us a call?