Property developer needed to raise funds fast to further business venture
Gross Loan Amount: £440,000
Charge: 2nd Charge
We were contacted by a new broker whose client owned a large number of development properties. The client was looking for a fast and flexible bridging loan to help raise money to put back into their property development business, by placing a second charge loan on their main house of residence.
The client was feeling pressure to complete, as funds were needed quickly to ensure the needs of the business were met. We knew we had to act quickly.
Whilst organizing the legals, the first charge lender consented to the second charge loan on the property. They then presented a Deed of Priority which heavily focused on their own concerns. Whilst we could understand this measure, MFS has a duty to lend sensibly so this was further discussed within the legal teams to find a middle ground that would support all parties’ best interests.
When we say yes, we mean it and our underwriters had to think outside of the box to make sure they found a solution that worked for both their broker’s client and MFS.
Although we approached the initial bank of the borrower to amend the deed to make it a more equal favouring, our underwriters took out a second charge on another one of the borrower’s developments properties without a valuation so that we could proceed regardless and lend the amount needed.
Our flexible bridging loans allowed us to tailor a loan to suit the client’s needs. Particularly with time being an additional issue, we used our strong relationships with our valuation panel to request figures over the phone. This enabled us to instruct lawyers with an increased speed, knowing the valuation report would be with them in person within 24 hours.
Both the broker and the borrower were extremely happy with our services and due to the current offer, both received an iPhone 12 upon completion.
Ensuring our clients and brokers are left happy with our services is our key aim and we look forward to continuing an ongoing relationship with the broker, who has already sent in a few more deals.