A new client came to us looking for urgent funding to repay a mortgage that was at the end of its term. The property was a large residential asset which had been purchased via a BVI company with a few technical points.
The client was looking to sell the asset but needed time to find a suitable buyer due to its size and nature of the company structure. A bridging loan provided them the flexibility they needed as a short-term solution with the added advantage that MFS do not charge for early repayments or any exit fees.
As the client was very close to default, MFS had to act quickly to minimise the impact of the default rate.
We were able to quickly instruct a valuation and due to our strong relationship with our panels, we can entrust our valuers to get the job done immediately in cases where time is limited.
Upon receiving the report, we discovered that the asset had slightly decreased in value. The MFS underwriter set to work to readjust the loan-to-value to account for this, and ensure the existing lender was repaid in full.
We were able to clear the mortgage and provide the client with sufficient time to find a new buyer. They were extremely relieved not to be in default and had the breathing space to sell their property at the optimum market value.
The client was able to clear their existing lender without being penalised or falling into default. This gave the borrowers time and enabled them to put the property on for sale to achieve the best market value for the property.
In cases such as these, speed is key. Despite the added complications within this case, our underwriters worked around the clock to meet the tight deadline.
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