preventing a chain break on a BTL property, SE4

Published by MT Finance -


Client circumstances:

Our client was partway through purchasing a residential property which they were intending to rent out when the mortgage market was thrown into disarray after September’s mini-Budget. As a result of the ensuing uncertainty, the client’s lender withdrew their offer. With less than a month until they were due to complete, they urgently needed to raise £339,500 to ensure the purchase didn’t fall through. Knowing that the process would be significantly longer with a high street lender, their broker immediately contacted us.


MT Finance solution:

As the previous lender had recently undertaken an inspection of the property, we were able to accept for the report to be re-addressed, which saved a significant amount of time. After this and the quality check were obtained, we were able to issue the checklist of legal requirements. The return of these enabled us to complete a first charge bridging loan of £339,500 at 70% loan-to-value of the property’s open market value of £485,000. Interest was retained at 0.89% over an eight-month term. This was our standard interest rate for a loan with a 70% LTV at the time of completion.


The benefits:

Thanks to our ability to move quickly, we completed on time as per the client’s deadline. This allowed them to purchase the property and add to their rental portfolio. As no works are needed, the client will be able to find a new tenant as soon as possible and start generating an additional source of income. The eight-month term will provide them with enough time to refinance onto a longer-term BTL mortgage. If they are able to secure this before the end of their loan, they won’t face any exit fees or early repayment charges.

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