Superfast second charge regulated bridging loan for contractor/developer

Area
Essex
Capital Raised
£120K

The Scenario

Our contractor/developer client needed a modest amount of finance to keep his project on track.

He was building two houses on a single plot: one was 8 weeks away from completion, the other was yet to be started.

He wanted to split this borrowing between completing work on the first house and getting the second build underway.

He has a small outstanding mortgage on his home, and was looking for a second-charge bridging loan secured against it.

He’d already spent a few weeks with another broker trying to set up finance unsuccessfully. He now needed to move fast, and he needed a deal that would stick.

We’d worked with his brother earlier in the year, setting up finish-and-exit finance on his own development project, and he recommended our services.

The Solution

Bridging finance is a "regulated" loan if it’s related to a property that has been – or will be – the borrower’s own home.

But not if the loan is for business purposes – as this one was.

Except that… our client was intending to move into the first of these two houses to be completed: that makes this a regulated loan.

If a broker doesn’t ask the crucial question “what are you intending to do with this development property when it’s finished?” they might take the submission to a lender who only handles unregulated loans. The borrower’s application could be a long way through the process before it becomes clear that it won’t proceed.

We took our client’s call on a Saturday, had a decision in principle for him by the following Monday, and a firm offer four working days later. Fast, even for us.

The lender we took his application to was happy to do a quick £99 desktop valuation on the house: because it’s a second charge loan, and the LTV was low.

A nice little bonus for our client: the valuation of his home for £650K was £50K more than he was expecting.

The lending we arranged is at a market leading rate, with the exit being the sale of his present home, which is already on the market.

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

Contact Us