Tag: bridging loan

Clever Lending completes second charge bridging loan for business capital raising in 3 days

Posted on | by Damien pepper

Clever Lending, the specialist finance packager and master broker, has announced that it has recently completed a £24,000 second charge bridging facility which completed within three days of the initial enquiry.

The customer approached Clever Lending directly in the afternoon of 15th August. He was raising funds for business purposes on an investment property with a second charge lender. However, he was struggling to overcome various issues with the lender and assorted legal matters, all the while needing to have the funds by 18th August.

Clever Lending discussed the case with bridging lender, Holme Finance Bridging Solutions, which agreed to provide a second charge loan without needing consent from the first charge lender.

The property valuation that had been carried out by the second charge lender who the client had previously been dealing with was accepted and Clever Lending packaged the case the same day.

The lender approved the offer on 16th August and met the client on the following day to finalise the application, with the case completing on 18th August to meet the customer’s tight deadline.

The net bridging loan was for £24,000 against the property valuation of £220,000. The total loan to value (LTV) with the first charge included was 60%.

Steve Sanderson, commercial and bridging specialist at Clever Lending, commented:

“This case came with an extremely tight deadline but it did not put us off. We knew that Holme Finance Bridging Solutions would consider a second charge application without the first charge lender’s consent and so worked closely with them to ensure we could package the case as soon as possible.

“The case completed on schedule because the parties involved were committed to making it happen, including the customer, who was very responsive.”

Dan Yendall-Collings, Senior Underwriter, Holme Finance Bridging Solutions, added:

“We have had a close working relationship with Steve Sanderson at Clever Lending for many years. Steve has a great deal of experience and expertise in identifying where our lending offering is a good match for his client’s individual set of circumstances. The quality of his packaging means that we have a very strong completion ratio with his cases’ successfully paying out within a matter of days.”

Clever Lending completes second charge bridging loan for business capital raising in 3 days

Posted on | by Damien pepper

Clever Lending, the specialist finance packager and master broker, has announced that it has recently completed a £24,000 second charge bridging facility which completed within three days of the initial enquiry.

The customer approached Clever Lending directly in the afternoon of 15th August. He was raising funds for business purposes on an investment property with a second charge lender. However, he was struggling to overcome various issues with the lender and assorted legal matters, all the while needing to have the funds by 18th August.

Clever Lending discussed the case with a bridging lender, which agreed to provide a second charge loan without needing consent from the first charge lender.

The property valuation that had been carried out by the second charge lender who the client had previously been dealing with was accepted and Clever Lending packaged the case the same day.

The lender approved the offer on 16th August and met the client on the following day to finalise the application, with the case completing on 18th August to meet the customer’s tight deadline.

The net bridging loan was for £24,000 against the property valuation of £220,000. The total loan to value (LTV) with the first charge included was 60%.

Steve Sanderson, commercial and bridging specialist at Clever Lending, commented:

“This case came with an extremely tight deadline but it did not put us off. We knew a lender that would consider a second charge application without the first charge lender’s consent and so worked closely with them to ensure we could package the case as soon as possible.

“The case completed on schedule because the parties involved were committed to making it happen, including the customer, who was very responsive.”

The Senior Underwriter at the lender, added:

“We have had a close working relationship with Steve Sanderson at Clever Lending for many years. Steve has a great deal of experience and expertise in identifying where our lending offering is a good match for his client’s individual set of circumstances. The quality of his packaging means that we have a very strong completion ratio with his cases’ successfully paying out within a matter of days.”

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”

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.