Transparency and Trust – regardless of the circumstances.
Recently, there have been many stories of clients being left high and dry when their original lender left the market suddenly at the beginning of lockdown. This is something that has also been experienced here at MFS, with brokers coming to us with clients on deadlines imposed by developers and sellers, at risk of losing deposits and dream portfolio properties.
Something that we always place huge emphasis on is the trust we have with our network, and the transparency we employ to every deal – regardless of the circumstances in which they come to us. It is almost certain that there will be stories coming out of lockdown of lenders that used the more desperate situation of clients to their advantage, with inflated rates and fees. However, this is something that will not have happened at MFS.
Over lockdown we completed a bridging loan deal with a new broker contact. The client was at risk of losing their property when their lender had their funding lines withdrawn, and left the market entirely. Unfortunately, the deal had already progressed somewhat, and the client had paid for the valuation, which had already been completed – leaving no opportunity for a refund on these fees.
Here at MFS we underwrite upfront, before any fees have been paid. This means that subject to valuation and legals, the rate that we state at the outset, is the rate that the client will pay. To this end, we are transparent with the rates offered, and will never say that we can do something if we can’t.
Ultimately, whilst we may not be the cheapest, we are a company of our word.
To help the client, we let them know our rates upfront, and then did our best to make the new situation work for the client without it costing them further money in fees. Therefore, as the valuer that was used initially is also on our panel, we simply redirected the valuation so that we could use it to underwrite the new deal. This made sure that the client did not have to pay for a new valuation. We also moved swiftly enough to ensure that the valuation was still in date.
It was then just a case of doing our internal KYC and instructing legals on the same day. Funds were released to the client just seven days later.
Although the rate was higher than they initially thought it would be, when they approached their first lender, our solution allowed them to actually complete on the property they were purchasing, and quickly.
For us, this reiterates the need for quality of service over the cheapest rates. We will never be the cheapest, but if we say yes, we mean yes. Do you prefer certainty and peace of mind over the uneasiness of cheap and inconsistent lending? Contact us today to find out how we can help your clients, and let us help you sleep soundly.