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Clever Lending secures £307k regulated bridging loan for downsizer

Posted on | by Neil Alexander

Clever Lending, the specialist finance packager and master broker, has secured a £307,000 regulated bridging loan to allow a client to downsize after suffering a hat-trick of setbacks.

Despite deciding to pull out of their first purchase due to dry rot, being gazumped on a second property, agreeing revised terms on a third property before reverting back to the second property after the gazumper pulled out of the transaction, the expertise, flexibility and desire shown by the lender and the broker still managed to get the deal done.  

From the introducer approaching Clever Lending with a three-week initial completion timeline, this protracted case ended up taking four months with Greenfield Mortgages supporting the client all the way through this complex maze of a transaction.

The regulated bridge was secured against the clients current property & the property being purchased, valued in total at £883,000. The loan was for the full purchase price of £300,000+fees with an exit generated by the sale of her old residential property.

Matthew Dilks, commercial and bridging specialist at Clever Lending, commented:

“We often hear about speed when it comes to bridging loans and the skills of specialist lenders operating in this field to ensure that transactions can be completed in a timely manner. However, what we don’t hear about enough is how flexible, accommodating and patient they can be in supporting the many twists and turns which can come with some particular cases. Especially those involving residential purchases and the tide of emotions which come with this.

“Greenfield Mortgages played a key role throughout what started out as an enquiry for a relatively straightforward three-week completion but ended up as a four-month purchase. A timeframe which is still quite remarkable given the course of events along the way. Their approach and reaction to shifting borrowing conditions was highly professional and supportive at all times and offered us a trusted platform to deliver the right solution for our introducer and their client.”

Andrew Franklin, Underwriter, Greenfield Mortgages, added:

“It’s always great to get a deal over the line, especially when a substantial amount of time & effort has been put in due to unforeseen circumstances such as gazumpers and gazumpers pulling out!

The team at Clever Lending provided clear communication to us throughout the transaction keeping us fully appraised of changes to the property being purchased which enabled us to swiftly underwrite, reissue relevant documents & update solicitors with the changes whilst also keeping themselves updated throughout the legal process so they could nudge the clients solicitor with the right things at the right time to ensure a timely completion.

It’s important in this industry to remember there is a client at the end of every transaction who is relying on us to deliver in a reliable and timely fashion which can only be achieved if both the broker & lender are working together as one”

Light and heavy refurbishments

Posted on | by Damien pepper

What are the biggest misconceptions among property investors about light refurbishment, and financing these projects?

We often find that applicants don’t fully understand the differences between light, medium and heavy refurbishment loans. Despite the fact that the majority of lenders will not accept any structural work, or any work that requires planning permission or via Permitted Development, for light refurbishment bridging loans, we still get such applications; we then suggest what type of loan would actually be suitable.

There’s also a wrongly-held belief that because in most light refurb cases the client will not want the lender to fund build costs, then lenders will not ask for proof of funds for the refurbishment costs. This is not the case.

In addition, clients often think that lenders will lend off the GDV (GDV is the Gross Development Value once all works are completed) for the Day 1 maximum loan whereas the reality is that lenders will work off the current value for the Day 1 lend.

Whilst we are talking about GDV, this in itself can be misunderstood by some and so just to clarify, the Gross Development Value (GDV) is an estimate of the open market capital value or rental value the development is likely to have once it is complete. It may be calculated as part of an initial development appraisal and may then be continually assessed to help determine whether the project is likely to be, or has been profitable.

It is calculated based on the market conditions prevailing at the date of the valuation, and may be based on an analysis of recent property transactions for similar properties in the area of the development. This can include asking prices, sale prices, information provided by letting agents or estate agents, or assessments provided by development surveyors.

With both light and heavy refurbishment projects, inexperienced investors don’t always appreciate that lenders require a detailed Schedule of Works – we often receive a hastily-written list on a piece of scrap paper instead, which doesn’t impress anyone! A detailed Schedule of Works is required as it gives both the broker and lender comfort that the client knows what they are doing and for example, we have a template that we provide brokers to help them get this information right first time.

What are the biggest misconceptions among property investors about heavy refurbishment, and financing these projects?

As with light refurbishment, clients think they will receive a quote on the back of cursory and approximate figures for the works. The reality is that we need clients to have done at least the basic work. This means establishing the current value of the site, demonstrating a good understanding of the cost of the refurb works as well as being realistic about timings, and including a contingency over-spend in the figures.

With heavy refurbishment loans, lenders will not complete until planning permissions are in place. Investors don’t always grasp this, but lenders need them to have a realistic timeline for when the full planning will be granted. 

Again, clients often (wrongly) think the lenders will lend off the GDV for the Day 1 maximum loan rather than the current value for the Day 1 lend.

As with all bridging loans, the exit strategy is critical, especially in these more economically challenging times. An exit strategy (or two) should hopefully demonstrate that the investor has a realistic understanding of the market.

Applicants don’t always realise that if the build costs are high, or if the building works are large compared to the original property, or if the majority/all of the property is being knocked down, then this will then be classed as full development. As a result, rates increase and the level/detail of information required also increases. 

It’s also important to stress that with ‘full’ development finance, costs increase. These include rates, valuations and QS re-inspection costs. In addition, lenders typically charge an exit fee. It is therefore advisable for investors to try and keep their project within the light to heavy refurb categories as this will mean reduced funding costs, less underwriting time and a wider choice of lenders to approach.

What is the most important factor that should always be included in a refurbishment loan application to ensure a smooth deal completion?

The most important factor that should always be included in a refurb loan application is a full Schedule of Works. This should include the details of what works are to be undertaken, how much each element will cost and how long it will take, including a contingency fund. Lenders do not look highly upon any ‘back of the fag packet’ figures! 

Understanding commercial finance

Understanding commercial finance

Posted on | by Damien pepper

By Steve Sanderson, Bridging and Commercial Specialist, Clever Lending

For residential brokers unfamiliar with the commercial finance sector, knowing where to start when it comes to placing business can be a daunting task. At first glance, this area of the market can appear to be rather complex, with different levels of financing required depending on the type of project undertaken.

However, the reality is that commercial finance is actually not too far removed from the residential sector. In fact, in many cases, the documents required during the application process for a commercial purchase for a trading business seeking finance are almost no different to those needed when buying a residential property.

For example, in the case of a residential owner-occupied purchase, brokers would conduct an affordability assessment based on the client’s personal income against any credit and background debts that may impact how much they can borrow.

These same measures are also used in commercial property purchase cases, but the affordability assessment used to determine how much the business can afford to borrow is based on income from the business’ trading accounts, rather than the business owner’s individual account.

Similar comparisons can be made when it comes to meeting any remortgaging requirements, with the same considerations for a commercial property purchase and a residential remortgage needed around rate switching, debt consolidation and capital raising to ensure the best deal.

How commercial finance compares to the BTL process

Residential brokers who occasionally dabble in the buy-to-let (BTL) sector should also be aware of the similarities between this area of the mortgage market and the commercial mortgage investment space, as being aware of how affordability is assessed could allow them to tap into another revenue stream within the market.

All BTL purchases are based on rental income and both the individual’s accounts and the business’ accounts are considered to ensure the mortgage is affordable. However, the main difference with a commercial investment purchase is that in addition to rental income, other factors such as the type of tenant and lease covenants such as the terms of the lease and break clauses included in the agreement will also need to be considered.

It is also worth noting that most commercial mortgage lenders do not just offer commercial mortgages, they will also consider financing BTL purchases. So, if a broker comes across a BTL case that is more complex than usual, there is probably a commercial lender that will take it on, so it is worth exploring the options available rather than turning away the business.

Commercial finance is not as complex as you might think

Although this area of the market may initially seem a tad more complicated, in reality, it is actually pretty straightforward and brokers should be aware that they don’t have to jump through as many hoops as they may think in order to place the business.

Any complexities arising in the commercial mortgage space usually come within the required documentation, rather than in the process itself and that ultimately, a commercial purchase mortgage for a trading business is affordability driven just like a residential purchase, while a commercial investment property is no different from BTL.

Admittedly, this area of the market may appear complex, but being aware of the overlap in how loans are calculated and drawing comparisons between the affordability assessments required in each of the different scenarios, will help brokers identify what is needed when working out loan serviceability.

Given the nature of the commercial property market and the fact that no two projects are ever the same, working with specialist firms like Clever Lending can also help those brokers needing further support when seeking this type of financing for their clients.

We understand that although commercial finance is simple in its concept, it is complex in its arrangement, which is where we can help. As specialists in this area, we can assist you in navigating the intricacies of this niche area of the mortgage market and provide your clients with the financing they need, leaving you free to focus on any residential clients in need of your advice and expertise.

Regulated Bridging – An ever more popular solution for today’s complex needs

Posted on | by Damien pepper

By Matthew Dilks, bridging and commercial specialist, Clever Lending

The need for bridging loans is growing rapidly, and far ahead of its usual trajectory. In fact, while Bridging Trends recently reported that bridging transactions jumped 68% between Q4 2022 and Q1 2023 to £278m, a perhaps more telling fact is that Knowledge Bank named ‘regulated bridging’ as the most popular criteria search term in the first quarter of this year.

The difference between regulated and unregulated bridging doesn’t just come down to the obvious point of the lending being authorised by the Financial Conduct Authority (FCA) or not (although this is a major part of it). It also relies on the purpose of a bridging loan – whereas unregulated loans can be secured against many different types of property or land, regulated loans must be used for a property either already belonging to the borrower (or their family) or on a property they plan to occupy in future.

Regulated bridging loans are increasing in relevance for the broader residential market, for many reasons, but a large one regards chain breaks. The current interest rate turmoil has seen close to 1,000 mortgage products disappear in the last few weeks, as well raising rates for those products that do survive, and the house price to average earnings ratio is now 8.8 – double that of the 70s.

A hopeful buyer staring down the barrel of a property chain was an unenviable situation during calmer times. Today, with mortgage products disappearing within 24 hours and loans suddenly being out of reach for many, the prospect of relying on a property chain is a nerve-wracking prospect.

Regulated bridging loan

A regulated bridging loan is the perfect solution to this problem for many would-be buyers. Such a short-term loan can be organised and extended within days, securing the property, with the interest rolled-up and paid for in a lump sum at the end of the term. And if things move more quickly than expected, the borrower only has to pay for the months they had the loan for, meaning an early repayment saves money.

Regulated bridging loans have many other uses, too. One recent example that springs to mind is a case we dealt with where somebody who, wishing to downsize, had to pull out of their first intended purchase due to dry rot, were then gazumped on their second property choice, then after finding a third property, went back to the second after the gazumper pulled out of their own deal. We managed to secure a loan of just over £300,000 with Greenfield Mortgages, made against the client’s existing property, then valued at £700,000. The loan was paid back from the sale of said property.

Another case from this year concerns a client who wished to purchase and renovate a farmhouse. Because the client planned to live in the property, we helped organise a £1.1m regulated bridging loan over 12 months through MT Finance. This loan was secured across both the client’s existing property and the farmhouse, with the eventual sale of the existing property funding this.

Both the mortgage market itself and clients’ needs are becoming more complicated and more fluid. There is no reason to believe this trend will reverse. Regulated bridging is a potent tool for managing uneasy situations, and the great news is that busy brokers battling on the front lines don’t need to spend time familiarising themselves with all the details. As a Master Broker, clients can be referred to us so they can take full advantage of our long experience in the bridging sector and our deep relationship with lenders.

In doing so, brokers will be paid a referral fee for finding the client and in the case of any repeat business the client transacts with us.

This is one of those rate situations where everybody benefits – the lender, all of the brokers involved and – more importantly, the client. There has never been a better time to jump into the regulated bridging sector.

matt-dilks

Matthew Dilks – In the Spotlight

Posted on | by Neil Alexander

Matthew Dilks, bridging and commercial specialist at Clever Lending

Tell us about your background and your current role at Clever Lending?

I originally started my financial services career in investment banking but decided to retrain in mortgages when I moved to Lincolnshire as there were less investment-based job opportunities in the region. I have always loved finance and wanted to stay in the industry; mortgages and property really interested me, so I retrained as it seemed like a natural next step.

Over the years I have a variety of roles including some time as a stay-at-home Dad, as a valuer at an estate agent, as an insurance fraud investigator and in private banking. I am now a bridging and commercial specialist at Clever Lending where my primary role is to help clients and brokers source financing for bridging loans, commercial mortgages, development finance, buy-to-let (BTL) properties and BTL portfolios. I love the variety that comes with working in the mortgage industry.

What trends are you seeing in BTL and bridging and what types of deals have you seen so far in 2023?

There has definitely been an uptick in the use of regulated bridging products over the last 12 months, which has been driven primarily by the current market volatility and higher interest rate environment.

Affordability constraints are forcing people to look at alternatives to remortgaging and this is increasing awareness among residential clients and brokers about the different types of financing available in the marketplace. As a result, more people are starting to use this type of financing to save their property chains.

There are also a lot of property investors and landlords using bridging to purchase at auction and we are also seeing an increase in large scale heavy refurbishments as investors try to maximise margins in a tough market.

What advice would you give to brokers and their clients who are new to the bridging market? How can a business such as Clever Lending help?

Given the complexities around the specialist lending market, brokers unfamiliar with bridging should definitely call in the specialists and use a packager when sourcing a deal. Packagers such as Clever Lending can provide hands on support throughout the entire process and are well versed in all areas of the specialist lending market.

We have over 25 years’ worth of experience in all aspects of specialist finance, including bridging, commercial, development finance and BTL, so let us do the hard work while you take a back seat to focus on those aspects of your business where you feel more comfortable.

You recently published details of a bridging case where the finance was used for downsizing, is this common? What else are you seeing this type of finance being used for that maybe brokers do not realise could be viable?

We are definitely seeing an increase in the number of borrowers use bridging finance for downsizing purposes, mainly because they want to move on their own terms or have seen a property that they do not want to miss out on and need to move fast. Often, these clients are retired or are thinking about retiring and their current house is no longer manageable.

In some cases, they may be selling to move closer to their children and grandchildren and have built up a significant amount of equity in their current home, but don’t want the stress of moving to deadline. In which case, they use the bridging loan to buy a smaller property and pay it off with the sale of their existing home. It offers them greater convenience.

Bridging loans are also increasingly being used for chain breaks to prevent the loss of a purchase as well as to buy property at auction. I think the main issue for brokers to remember when it comes to this type of financing is that is important to think outside the box, especially in terms of regulated bridging.

Brokers can be reticent about referring clients and letting others provide the advice. How do you put their minds at ease with your referral service and how does it work in practice?

I think the main message we always try to convey is that we are here to help and guide brokers in an area of the market they may not be familiar with. We do this by providing advice and specialist finance solutions for any clients that fall outside the remit of mainstream lending.

We understand that brokers have worked hard over the years to build up their client base and want to protect their business, which is why we pay a commission once the case completes with funds released. We often find that once a solution is found for these customers, they have future plans and projects in mind. This can lead to further business and we’d pay a commission to the introducing broker, which can prove to be an excellent form of passive income.

It is not in our interests to take the client away from the broker. We want to work with brokers and help them provide solutions for their clients as well as build good solid relationships that last for years.

development finance

Clever Lending completes 85% refurbishment bridging loan for auction purchase

Posted on | by Neil Alexander

Clever Lending, the specialist finance packager and master broker, has recently secured an 85% loan to value (LTV) bridging facility worth £133,387 for a client who wanted to purchase a property at auction and then immediately renovate. 

The client was looking to move quickly and needed a high LTV in order to purchase the property, add an extension and carry out extensive work to the property as soon as the sale had been finalised.

The client first approached Clever Lending outlining their request and seeking a financing solution. The specialist finance packager then used its market expertise and extensive lender relationships to secure a 12-month term refurbishment bridging funding solution with LendInvest at a rate of 0.99% per month.

The valuation on the property was completed just four days after the application was submitted with funding four weeks after submission, enabling the client to move quickly as requested and meet the extension deadline date of mid-May.

Nicola Ferguson, commercial and bridging specialist at Clever Lending, commented:

“This case was slightly unusual as the client needed a high LTV funding solution that would enable them to purchase the property at auction and build an extension.

“As not many lenders offer 85% LTV, I was confident that I could place the case with LendInvest as they have a reputation of being fast with auction purchases and would allow an extension to be built on this product.

“The result was a refurbishment bridging facility with an 85% LTV, with a swift turnaround time of four days for the valuation, which meant the client could move quickly on the purchase and the planned extension works.”

Michael Minnie, Senior Business Development Manager at LendInvest, said:

“This deal embodies everything we like at LendInvest; an ambitious borrower wanting to contribute to the UK’s housing stock with high quality housing, and an opportunity to show off with our speed of process and flexibility of criteria. 

“Through managing the deal through our portal, our front end and back end technology was able to deliver the deal in quick time for the client, while our flexible product range was able to meet their High LTV requirements to get them the right deal.”

client with broker

Helping brokers with complex finance

Posted on | by Damien pepper

By Matthew Dilks, Bridging and Commercial Specialist, Clever Lending

In the current economic climate of rising interest rates and a rapidly changing mortgage market, a growing number of brokers are increasingly finding themselves encountering clients with unique and complex financial circumstances.

The dynamics of the last few years has significantly impacted the mortgage and property markets, with rate increases, high inflation and affordability constraints shifting the boundaries for many would-be buyers.  

This is happening right across the mortgage market, with fluctuations in the housing sector having an impact on residential buyers who are increasingly turning to specialist finance mortgage products such as bridging loans as an alternative way of financing their property purchase and preventing a chain break.

Landlords and investors, constrained by tighter buy-to-let margins, are also increasingly using bridging for their property purchases as they search for greater returns on investment and more profitable yields by buying properties at auction.

Similarly, the commercial market is starting to see an uptick in activity after a period of slow growth due to the pandemic, 12 consecutive interest rate hikes and instability following the mini budget in September last year. All of which saw many lenders retreat from the market amid concerns of ongoing volatility.

However, despite the continued uncertainty in the market, specialist lenders remain open for business and the changing dynamics of the mortgage and housing markets means demand for specialist lending solutions is even greater than before. The market is moving fast and there is now a real sense of urgency among many borrowers to try and get the deal done before any further changes can occur.

Working with Clever Lending

This can be daunting for brokers, particularly those unfamiliar with the specialist lending sector, but it also presents a real opportunity for brokers to tap into additional revenue streams by working with a specialist broker like Clever Lending to find solutions for these complex cases.

Placing unusual and non-standard cases is our core business and we have built up a wealth of experience over 25 years of sourcing specialist property finance solutions in the commercial, bridging, development finance and portfolio BTL space.

We are well versed in navigating the intricacies of complex income portfolios and non-standard mortgage cases and understand that this area of the mortgage market can be extremely complex and time-consuming. We also understand that many brokers simply do not have the time, resources or understanding to navigate the challenges that can come with placing this type of business.

Finding a suitable financing solution

Coming across a case that does not fit the mainstream mould can be extremely frustrating for brokers, which is where Clever Lending can help. In situations where a case is non-standard or out of the ordinary, do not let a decline or an area you are unfamiliar with be the end of the road for you and your client.

Instead, refer them to us and we can work with you to gain an understanding of their needs and find them a suitable financing solution from our extensive panel of lenders. This leaves you free to focus on the other aspects of your business while we do the heavy lifting. We will also pay a commission once the case completes and the funds released.

Navigating this area of the mortgage market can be tricky, but continued uncertainty in the market means demand for complex financing solutions is growing and is likely to continue to increase. This presents brokers with ample opportunity to develop relationships with specialist firms that can help you source complex financing solutions as well as tap into this growing and lucrative area of the mortgage market.

Maximise your returns with a bridging loan

Posted on | by Damien pepper

By Matthew Dilks, bridging and commercial specialist, Clever Lending

One of the downsides of being a buy-to-let (BTL) landlord is missing out on a property due to a lack of available funds. Both landlords and investors need to move quickly when it comes to buying a property and not having enough equity to hand can make this extremely difficult.

With the mortgage market currently in a constant state of flux, this is becoming increasingly common. Rising interest rates and ongoing uncertainty has seen many lenders quickly withdraw products from the market, often without a great deal of notice.

In fact, figures from financial data firm Moneyfacts shows 10 per cent of mortgage deals were pulled from the market in the last week of May, while rates on two- and five-year fixed rate deals have risen to 5.61 and 5.52 per cent respectively.

What is the impact for landlords?

The short-lived nature of many of these mortgage products means landlords may be missing out on the chance to secure a mortgage before it is withdrawn and are therefore, unable to move forward with a property purchase. Higher interest rates may also mean you may be starting to feel a squeeze on affordability and profit margins.

Many landlords are also facing the increased possibility of not being able to secure an attractive rate when remortgaging, which may mean they have to move onto a standard variable rate product transfer and face even higher costs.

Bridging loan

In each of these scenarios, a bridging loan could help you to address these problems by providing you with a solution of accessing funds quickly, therefore reducing the chance of missing out on a property purchase.

This is because bridging loans are designed to help bridge the gap until longer-term financing can be found and are ideal in situations where you may move quickly because you need money to buy a new property or renovate an existing one.

There are actually a number of reasons why you may take out a bridging loan including to improve the property by carrying out works to upgrade a boiler or install double glazing or loft and wall installation in order to meet the upcoming Energy Performance Certificate requirements.

Perhaps you have taken stock of your property portfolio and are looking for ways to increase your yields by carrying out minor renovations such as painting and decorating to increase the value of under-performing assets.

Or maybe you would like to buy an unmortgageable property at auction and completely renovate it to a high standard before exiting the loan and refinancing onto a standard mortgage before renting out the property or selling it on for a profit.

You can also use a bridging loan to prevent a chain break when there is a risk of losing the property in the later stages of a deal. By taking out a bridging loan, you can use the funds to secure the purchase while you wait for another property to sell.

The current uncertainty in the mortgage market means being able to move quickly and with ease is important for landlords and investors looking to expand and improve their property portfolios.

Lenders are continuing to pull mortgages at a rapid rate, which means remortgaging may no longer be a viable option for some. In which case, a bridging loan could prove to be a viable alternative by enabling you to quickly access funds in an increasingly uncertain market.  

Regulated bridging

Regulated bridging for downsizing Broker

Posted on | by Neil Alexander

By Matthew Dilks, Bridging and Commercial Specialist, Clever Lending

Bridging finance is often associated with landlords and property investors in need of a quick cash injection in order to fund housing projects or purchase a property before renting it out or doing it up and selling it on for a profit. 

While there is of course an element of truth to this, the fact is the bridging finance market is an excellent funding solution for all would-be borrowers and offers enormous potential to everyday homeowners looking for greater flexibility when it comes to comes to moving home.

In recent years, some of the long-held stigmas around bridging finance have dissipated, as more and more brokers have become more comfortable offering it as a solution to clients. However, because this type of finance does have higher interest rates, shorter terms and the need to have a clear exit strategy, many will rely on a business like Clever Lending to source, place and process such cases due to added complexity.

The fact is though, if used correctly and with the right exit strategy in place, bridging finance can prove to be a cost-effective and efficient way for borrowers to navigate the complexities of the house purchasing process.

Bridging loans explained

There are two types of bridging loans available in the market; regulated and unregulated, with the latter primarily being used by property developers and landlords for business purposes either for residential or commercial properties.

In contrast, regulated bridging loans are authorised by the Financial Conduct Authority and are used solely by residential owner occupier borrowers looking to carry out refurbishments and renovations or break a chain because they want to purchase a property before they have sold their current home.

Why offer a bridging solution?

Demand for regulated bridging loans has increased over the last few years as the financial pressures brought on by the Covid pandemic and subsequent cost-of-living crisis has led borrowers to seek out more efficient and cost-effective forms of capital raising.

In fact, regulated bridging loans accounted for almost half of all transactions (44%) in 2022 according to MT Finance’s Quarterly Bridging Trends Survey, a trend likely to continue as more brokers and borrowers begin to acknowledge the benefits of this type of financing.

Increasingly, we are starting to see a growing number of borrowers use bridging finance for downsizing purposes because they want to move quickly or on their own terms. In many cases, these customers are in or approaching retirement and have built up a significant amount of equity in their current home.

In this situation, taking out a regulated bridging loan against their property enables them to release the cash tied up in their security and purchase a smaller property outright. When their existing home is then sold – the exit strategy – these funds can then be used to pay off the bridging loan.

Bridge loan fees

One of the most common misconceptions around bridging loans is the fees associated with taking out a loan, but it is worth remembering that while the headline rate on most bridging loans may initially appear to be higher than a standard residential mortgage, any interest charged is over a much shorter term, and therefore may seem more prominent.

In addition, although the majority of loans are taken out for a term of 12 months, borrowers looking to downsize usually only need a bridging loan for a short amount of time, typically between two and six months, depending on how quickly they sell their existing property. This reduces the interest payable considerably.

Bridge loan example

For example, a £250,000 loan taken out at a rate of 0.6% over 12 months would cost approximately £272,060. If this was repaid within three months, this would be £257,800, a saving of £14,260, within six months it would be £262,469 – a saving of £9,592. Repaying the loan in nine months would result in a saving of £4,839 (£267,221).             

Given the fact that the majority of borrowers looking to downsize typically have an LTV of 50% or less, they will also likely have access to the most competitive rates on the market as well as automated valuations (AVMs), enabling them to make even greater savings.

Loans can be arranged in a short timeframe, typically three to five weeks, which also makes them ideal for borrowers willing to pay for the convenience of gaining swift access to finance.

As a general rule, bridging loans are often only available through mortgage brokers, so it is imperative that any borrower wanting this type of financing seeks professional advice. Not only will this ensure you get a solution best suited to your needs, it will also help to dispel any myths and provide reassurance around this important and complex area of the mortgage market. 

Clever Lending announces two new appointments

Posted on | by Damien pepper

Nicola Ferguson

Nicola Ferguson has been promoted from the position of Case Manager to become a Commercial and Bridge Specialist.

Nicola joined Clever Lending as Case Manager three years ago and her promotion is in recognition of her industry knowledge and success in passing her CeMAP exams. Her previous roles in financial services include that of Case Officer and Technical Support Offer in the IVA sector and Pensions Administrator for an independent pension company.

In her new role, Nicola will be responsible for placing commercial and bridging enquiries, including regulated business. She will work with Clever Lending’s introducing brokers to find a successful solution for their customers and is fully supported by the firm’s existing commercial and bridging specialists, Steve Sanderson and Matthew Dilks.

Nicola Ferguson

Nicola Ferguson

Chloe Ison

Meanwhile, Chloe Ison has joined Clever Lending as Case Manager.

Chloe joins the business from an insurance company where she worked for 13 years. She began as an office junior and worked her way through Claims Manager and Assistant Underwriter roles to finally become Office Manager. 

At Clever Lending, Chloe is tasked with the day-to-day management of moving cases from DIP to completion, supporting Matthew Dilks. Chloe will obtain all the relevant documentation from customer or introducer and then fully package the case to the lender, including arranging a property valuation if needed. Thereafter Chloe will liaise with all parties to obtain an offer and then work with the solicitor until successful completion.

Chloe Ison

Kevin Blount, Director of Technical Operations at Clever Lending, commented:

“Customer service is paramount at Clever Lending and brokers who use us testify about our high quality personal service, advice and case management. 2023 has been a very busy year so far for Clever Lending and these appointments will further bolster our service function as we continue to deal with more and more cases.

“Nicola and Chloe have already hit the ground running in their new roles and will ensure that applications are successful, cases are managed efficiently and funds are released within the required timescales.”