Factoring Potential Future Developments for a Refinancing Strategy

Overcoming several complications case study

Loan Amount:
£460,000

Property Value:
£700,000

LTV:
64%

By refinancing onto one of our specialist BTL mortgages, borrowers can get their affairs in order, and put themselves on a more steady footing for their long-term plans.

But, where clients plan to sell their security for the exit strategy, it can make that preparation difficult. A borrower sought refinancing capital to organise their affairs but given the relatively long length of their term with us, it made it difficult to factor in relevant sales and pricing data.

To find a solution, our underwriter got to work.

It’s hard to fully predict what’s on the horizon

From the outset, we noted the borrower was a seasoned BTL investor, who has sensible plans to clear an existing facility with our finance. We were confident they’d be able to cover the repayments in the interim but, the planned exit strategy posed challenges.

The property investor planned to sell the asset at the end of the term. This made it hard to factor in sales statistics, as any current data wouldn’t be relevant to the market at the term’s end.

To mitigate this, our underwriter included a condition to have the property put on the market within certain timeframes – diminishing the risk involved. With contingency plans in place, coupled with the security’s solid desirability, we were able to provide funding quickly.

We adapt to the market’s needs

More longer term mortgages are coming to the market and at Market Financial Solutions, we recognise that borrowers require optionality in this area. Which is why we are excited to be launching a new Bridge Fusion product, designed to offer a flexible, medium length solution for borrowers.

Now, across our products, we can accommodate immediate concerns, through to longer plans.

What’s more, all our loans continue to be available for a broad range of property types of circumstances. We’re there for investors looking to purchase simple residential assets, as well as those who require complex finance for a tricky corporate setup.

FAQs

Do you only work with experienced investors?

No, we support borrowers across all experience levels. Whether you’re an experienced investor with a large portfolio, a first-time landlord or purchasing a property via an offshore structure or an SPV – we assess every case on its own merits. We tailor our approach based on your background and deal structure rather than relying on tick-box criteria.

What makes Bridge Fusion advantageous compared to traditional refinancing routes?

Mainstream lenders can have strict criteria that simply don’t work for every scenario. Bridge Fusion combines the speed of a bridging loan with helpful features of a buy-to-let mortgage. It has a longer term to wait out any uncertainties, offers rolled and deferred interest as well as top-slicing to increase the loan amount and help with cash flow. Additionally, there is the option to extend the loan for another 12 months to give more breathing space when needed.

Is Bridge Fusion the only refinance product you have?

No. In addition to Bridge Fusion, we offer specialist buy-to-let mortgages that can be tailored to different kinds of scenarios and investors, such as complex, semi-commercial, holiday-let, SPV, capital-raising, and ex-pat products, designed for borrowers ready for longer-term finance. Bridge Fusion acts as a hybrid solution, helping borrowers transition from short-term positions into standard term lending when appropriate.

Which corporate setups do you work with?

Apart from individuals, we support a wide range of corporate setups SPVs, LLPs, trusts, trading companies, owner-occupiers, overseas investors, and offshore entities. We’re particularly experienced in handling SPVs and OpCo/PropCo structures. Get in touch with our team to discuss your individual situation and learn how we can help you.