£2.36m refinance in 5 days, CT7

Published by MT Finance -


Client circumstances:

Our client was a property developer who owned a development site which included multiple residential units. The majority had already been purchased and only eight remained, although sales had been agreed for many of these. Out of these eight, six were either complete or at the snagging stage while two were wind and watertight. There was only £150,000 of works left, but with their existing lender unable to facilitate further payments, the client urgently needed £2.36m to repay their existing charge and fund the outstanding works. They were also intending to use a portion of the £2.36m to purchase their next development project.

With their current charge quickly coming to an end, they urgently needed a short-term fix. Knowing our ability to move at speed, their broker got in touch.


MT Finance solution:

We received the completed enquiry form on 26th September, which enabled us to instruct solicitors on the same day. The valuation also took place on the 26th and the report was received on the 29th. With everything now in place, we completed a £2.36m bridging loan on 30th September, only five days after the completed enquiry form was sent to us. Loan-to-value was 58% and interest was retained at 0.95% – standard for a bridging loan which is being used to fund a heavy refurb – over a six-month term.

As the client is using some of the bridging loan to complete the works, they are entitled to up to four additional tranches totalling £500,000, excluding any interest and retained interest on the balance of the term.


The benefits:

The fact that we were able to complete so quickly ensured that the client could repay their existing charge on time. They now have enough capital to undertake the outstanding works on the eight remaining units, with further tranches available if they need them. The client is also able to take advantage of a business opportunity and purchase another series of properties which they are intending to develop.

The six-month term of our bridging loan will provide the client with enough time to finish the works on the eight properties and complete the sales, the proceeds of which will enable them to exit our bridging loan. If the sales go through quicker than expected, they won’t face any exit fees or early repayment charges, a feature which is standard on all our bridging loans.

Millie Dyson

We are a leading property finance lender specialising in short-term loans for property investors, business owners and homeowners.

Link to MT Finance business profile

4th March 2024
Industry Insights
Are we out of the woods yet? Well, not really – recession, living costs and mortgage prices continue to hold back the property market
Read more
15th February 2024
Annual Bridging Loan Transactions Hit Record High in 2023
2023 may have been marked by ups and downs but as the economic outlook remained uncertain for much of the year, an increasing number of borrowers turned to bridging lenders to secure their onward purchases
Read more
2nd January 2024
Mortgages for Commercial Property: Your Complete Guide
This guide explains everything you need to know about commercial property mortgages, and the potential benefits of commercial investment.
Read more