Overcoming lender delays and raising finance to resolve adverse credit

Gross Loan Amount:

£410,000

Property Value:

£985,000

Initial Circumstances

One of our returning brokers introduced us to a new client who had found themselves stuck in a complex situation. The client was looking to raise finance against a buy-to-let property in Dulwich, as they had an existing business loan that need to be redeemed.

The current bridging term loan term was coming to an end and needed to be cleared within a matter of weeks. In addition, the client also wanted to raise the property’s value through refurbishment works, before selling the asset. We were happy to take on the case, including the additional funds for the renovations.

MFS Solutions

After sending indicative terms, our underwriters came across some adverse credit. They immediately contacted the broker, so we could uncover a way to resolve the outstanding credit. Due to our product’s flexibility, we were able to adapt the loan amount by raising the LTV. This then provided enough funds to clear the adverse credit and cover future refurbishment works.

Due to the nature of second charge lending, the assigned MFS underwriter contacted the first charge lender to receive consent for our second charge bridging loan. This took longer than expected to receive and in response to the delay, the client unfortunately went into default with their current lender.

However, whilst waiting for the first-charge lender consent, our dedicated team worked around the clock to raise the finance to cover the additional costs generated by the default. Upon receiving the consent, we updated the necessary forms and continued with the bridging procedure.

The Benefits

Whilst we cannot control all aspects of a case, when we say yes – we mean it. We understand that things do not always go to plan and therefore ensure our terms take into account potential delays. Should your long-term financial solution or exit fee be ready earlier than expected, we do not charge any exit fees or an early redemption charges,

We look at the greater picture and take the property and the client’s application into consideration. Despite the constant changes, we were able to complete and clear all the necessary charges. Our underwriter worked to meet all criteria changes and find an overall solution. They also kept on top of all communication channels – updating all parties involved.

Our flexibility allowed us to adapt the loan to clear the adverse credit and overcome the default charge from the previous lender.

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Our Buy-To-Let Mortgage product is here to help you find your specialist financial solution.

Whether you’re a first-time landlord looking to start your journey, or a seasoned investor purchasing your next HMO, we’ve got you covered.

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