Tidying up existing financial obligations despite potential alerts

complicated case completed care confidence

Loan Amount:
£1,000,000

Property Value:
£1,420,000

LTV:
70%

A borrower required refinancing to tidy up several investments they held in their portfolio.

But, during our due diligence, a unique issue emerged. As the underlying borrower had a relatively common name, several potential alerts emerged during our initial reviews.

We had to ensure that all these alerts were not actually applicable to our borrower. To get on top of this, our underwriter had to raise this deal to the right teams internally.

Lowering the red flags

Our underwriter confirmed none of the alerts actually related to our borrower. But for further assurance, this deal was raised internally so that the matches could be fully discounted. As this deal was assessed by several reviewing teams, it was determined that the matches were discountable by multiple factors.

Due diligence is key with any case, and this one took some extra work to make sure it was able to cross the line. But with everything in place, and accounted for – we were happy to provide the finance our borrower needed.

Providing reprieve in a tough market

Applicable or not, these kinds of alerts could prevent many investors from progressing in the UK market. Indeed, over 140,000 businesses had their accounts closed by the UK’s biggest banks last year due to fears over financial crime and risk appetite, according to the FT¹.

Given how hesitant some banks have become in recent years, and how lending criteria has tightened², working with a specialist lender with robust review processes will likely be essential for many.

Fortunately, with nearly 20 years of specialist lending experience behind us, we’re ready to handle the most challenging cases the market has to offer. We will always do what we can to find a way forward for a borrower, even if they have certain red flags to their name.

FAQs

Do you always do due diligence?

Yes, we always carry out thorough due diligence on every case. This allows us to understand the property, the applicant and the wider circumstances in detail. However, our process is streamlined and pragmatic, helping us deliver decisions quickly while maintaining the high standards needed for complex transactions.

Will my case be declined when red flags occur?

Not necessarily. We take a solutions-led approach and investigate the reasons behind any red flags. Rather than relying on rigid criteria, we consider the bigger picture and work with clients to address challenges. This means we can often find ways forward even in cases where other lenders may have said declined an applicant.

Can you help if I am refinancing to release equity for another investment?

Yes, refinancing to release equity is a common reason clients approach us. We can help structure facilities that unlock the value tied up in existing properties, allowing you to reinvest in new opportunities quickly and efficiently.

Do you lend on properties with complex ownership structures?

We regularly work with properties held under offshore companies, trusts or other complex structures. Our underwriting team is experienced in navigating these arrangements, ensuring we can support a wide range of clients and ownership scenarios.