Gross Loan Amount:
We received a call from a new client who had purchased a property at auction a week earlier. They needed a first charge bridging loan to complete the purchase of the property.
When it comes to auction finance, funds need to be supplied fast to meet the 28-day deadline set by the auction house to complete. With three weeks left, we got started on our lending process.
Utilising our valuation panel, we were able to promptly send a valuer to the property. Once we received the valuation report later in the week, we instantly instructed our legal team, to guarantee the bridging loan would be completed on time.
However, the following day we received a call from the valuer regarding the report. Due to an issue with their insurance, the report was deemed invalid. A different valuer was immediately sent to the property.
Upon receiving the second report, a new issue arose. The report had priced the property at a lower value than the previous one had. As the solicitors had already been instructed, our underwriter had to work on an alternative solution for the client.
Moving swiftly, the underwriter took out a first charge against a second property that also belonged to the client. This acted as additional security, allowing the team to raise funds to the required amount.
We understand that complications can arise, so our underwriters are used to moving quickly to find alternative solutions for clients.
This particular client completed before their deadline and was left very pleased that they were able to purchase their new property, regardless of the complications.