Refinance for an expat in need of a large loan

Loan Amount:
£9,780,000

Property Value:
£13,000,000

LTV:
73%

Refinancing a deal can be tricky at the best of times. In the current market, finding tolerable terms or flexibility is difficult.

But, these issues can be ramped up when the underlying borrower is investing via a company, and has multiple streams of income & wealth. This would require a lot of due diligence from a lender.

One of our underwriters had to deal with such a case, raising the details internally to ensure we could find a way forward. Fortunately, by focusing on the essentials, we managed to get funding delivered quickly.

Mitigating the risks involved

The borrower turned to us for refinance that would be put towards clearing an existing facility, and to raise capital. The case was straightforward enough, with paperwork that accounted for everything.

However, based on the borrower’s profile, appropriate due diligence still had to be carried out without the refinance being delayed, which could have made the loan requirement redundant.

To mitigate this, our underwriter raised this deal internally to ensure everyone was comfortable in progressing, and any delays could be minimised. Also, we ensured that they’d be able to move on from our loan comfortably upon exit. With everything accounted for, we provided the borrower with the refinance they needed.

Welcoming overseas investors

Despite all the negative rhetoric surrounding the property market, expats and overseas buyers still appear to have a lot of faith in the UK economy. We recognise this at Market Financial Solutions (MFS), which is why all our products remain open to expats, offshore companies, trusts and more.

What’s more, our new Bridge Fusion product was designed from the ground up to accommodate this corner of the market. As Mike Cook, our chief mortgage officer, recently detailed: “Even now, Britain, and especially London, attracts commercial investment from foreign nationals. But investors with overseas ties are likely to face an even tougher time with our banks at the moment.

“That won’t be an issue here though. Fusion will be there for foreign nationals looking to expand in the UK market for the first time, build a presence and history, with funding available for large scale renovation projects, first-time commercial landlords, and professional portfolio owners looking for large loans of £3m to £20m”

So long as borrowers want to invest in UK property, we will so what we can to offer a way forward.