Loan Amount:
£3,400,000
Property Value:
£4,525,000
LTV:
75%
A new broker turned to us for the first time to help resolve a tricky case they had on their books. The underlying borrower involved required like-for-like refinancing to keep their investment plans from falling through.
Their original lender had specific requirements to keep their deal in place, and there was a shortfall to be covered. While the borrower got their financial affairs in order, they sought out help to discharge the original loan and progress their plans.
Our underwriter made sure they’d be able to cover any other potential shortfalls down the line, while also ensuring their exit strategies were sound.
Covering a shortfall
We determined that with our loan, the borrower was still likely to face a shortfall down the line. But our underwriter worked with the broker involved to find a solution.
The borrower confirmed they’d be able to cover this shortfall with capital from separate assets, which we gathered evidence for. They also planned to refinance onto one of our other mortgage products as part of their exit strategy, allowing us to support their plans even further down the line, as it would fit the criteria.
Should their external refinancing plans not have worked out for any reason, they’d likely be able sell the asset to redeem our loan for a backup exit strategy. With these plans in place, coupled with the borrower’s strong profile, we delivered funding.
We want to hear from new brokers
We expect to be busy welcoming waves of new brokers over the coming months. Brokers are confident that this year will be a good year for the property market, as are landlords, and property investors.
Fortunately, we’re primed to take advantage of this optimism. Our products are always open to new and existing brokers alike, in both challenging and stable markets.
We welcome any enquiries from new brokers who, we hope, will eventually become cherished long-term clients.
