Adjusting to a borrower’s changing circumstances with Bridge Fusion funding

Loan Amount:
£548,000

Property Value:
£730,000

LTV:
75%

Our Bridge Fusion product is particularly useful for borrowers who need to achieve multiple disparate end-goals within one structured way forward. A borrower needed to amend the existing setup in their portfolio before they could progress, and they turned to us for support.

However, the underwriter found that as the deal progressed, the initial circumstances changed. This forced us to adapt in the face of a tight deadline, and come up with a new way forward.

This deal required close internal collaboration and fortunately, by coming together, we found a way to support this borrower through a difficult period.

Focusing on the long-term

The borrower needed bespoke funding to improve their financial position, as well as carry out portfolio refurbishment works. Given their situation, the underwriter raised this case internally so we could progress the deal. By agreeing to attain additional paperwork and assurances, we then turned our attention to another pressing issue.

The client’s circumstances changed which put the underlying valuations in question, creating potential ICR issues. But, by analysing the deal’s potential post refurbishment, our underwriter determined it would fit in with our criteria down the line.

Seeing there was a clear path to a refinancing exit strategy once these issues were addressed, we were able to deliver funding.

Breathing space for an unclear period

Addressing issues in one’s financial history and preparing for complicated refurbishment plans are likely to be two key concerns in the property market over the coming months. With tough Renter’s Rights rules and EPC targets coming into play soon, many property investors will have limited time to get their affairs in order.

Also, as the market adapts to a “new normal”, it may take a while for the dust to settle, and for property investors to even know where to stand.

Thankfully, our Bridge Fusion loans can allow borrowers to both organise their portfolios, and/or wait out market uncertainty. Regardless of what our borrowers need, we will do everything we can to support them in the months ahead.