A 2nd charge semi-commercial deal requires thorough analysis

Loan Amount:
£246,000

Property Value:
£500,000

LTV:
70%

Our deals can be multifaceted. Borrowers often turn to us for purchasing capital, or refinance funding. But, sometimes, a case requires both.

This can add complication to any deal. Obviously, both these elements will require different guides of underwriting and due diligence.

One of our underwriters recently had to deal with such a case. Fortunately, by thoroughly assessing the borrower’s situation, as well as analysing the wider market, we found a way forward.

Going over the details

For the refinancing element of the deal, our underwriter ensured everything was accounted for, and that we received consent from the first charge lender involved.

We then focused on the purchase. Despite the borrower’s solid financial background, we noted there was a shortfall in the acquisition. Our underwriter jumped on this, and attained evidence from the borrower confirming how this shortfall would be covered.

Also, to ensure this investment held long-term potential, we examined other properties in the same specific market. We saw that comparable properties were priced similarly to our borrower’s investment. As we covered these areas, and seeing that the exit strategy was clearly thought out, we comfortably issued the finance required.

Bespoke products for unique situations

Financial backgrounds, along with property investment plans, can be complicated. Also, they may only be made even more complex by the current market. Changing legislation, and a tricky economy can make it difficult for borrowers to progress.

This is why we have a range of products available at Market Financial Solutions – to accommodate a broad range of unique scenarios. There are our standard products, such as our residential bridging loans or BTL mortgages, as well as our more unique options, including 2^nd charge funding and Bridge Fusion.

We welcome complications of all kinds here at Market Financial Solutions, and we will always try to find a way forward where we can.