Short term loan to cover a private bank mortgage

Gross Loan Amount:

£1,650,000

Property Value:

£2,200,000

LTV:

75%

Initial Circumstances

Whilst others in the financial industry might think that trust is difficult to find, we disagree. One of our key focuses is building strong relationships and trust with both our brokers and direct clients, as well as rewarding loyalty. We do this through a slick and fast process that is incredibly effective.

An existing direct client, who has always been happy with the way that we work, came to us with a property in prime central London. They had an existing mortgage with a private bank which had come to the end of its term and the bank had requested their excess funds, the upcoming long-term lender was taking long than expected.

Not wanting to receive any financial penalties, the client needed a bridge loan to cover the payment owed to their existing bank, with an exit strategy of traditional long-term refinance through a portfolio of properties that they owned.

MFS Solution

Having a strong background with our clients means that we gain a stronger connection and understanding for their needs, enabling us to produce a bespoke bridging loan to fit with their situation. Private banks work differently to other lenders, often their mortgage criteria range between 5 – 10 years (for Prime central London) rather than the more common 25 – 35-year mortgage.

Due to the shorter term, we understood their position and were more than happy to look more in depth at the necessary requirements.

Our underwriter was able to spend quality time understanding the situation, the transition between banks, and was also able to find a better rate in the long-term. By supplying the bridge loan, we were also able to give our client the breathing space they needed by paying off a traditional lender.

The Benefits

Needing to repay without our client receiving any penalties with his existing bank was a driving force that pushed our underwriters to work through the case swiftly. They were able to get the valuation done very quickly whilst instructing the lawyers at the same time.

Whilst bridging can seem expensive in the short run, we look for great saving in the long-term, putting forward the best option that was going to save our client money.

 

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