Signature Private Finance

Bridging loan secures client discount on two-bed flat

Principal lender Signature Private Finance has provided a £500,000 bridging loan to help a client secure a discount on a two-bedroom flat.

The client was introduced to Signature by Amir Din of UK Mortgage Specialists in Coventry.

The property was a recently refurbished, two-bed flat in a purpose-built, six-storey building of 24 flats in north London constructed in the 1950s.

The borrower needed the funds urgently to secure a significant discount off the £670,000 asking price.

The required £500,000 loan wasn’t a problem for Signature, but the urgency to complete within days created pressure.

The borrower was in the process of arranging finance through another lender, but towards the end of March was offered a discount if the deal could be completed before the end of the financial year on 6th April.

Signature was contacted by Amir just six working days before the deadline.

Tony Gilbertson, CEO of Signature Private Finance (pictured above), said making a decision within days for a new client was quite extraordinary.

“Typically, the process of providing bridging finance for any amount will take weeks rather than days, but when the figures exceed £500,000 with an LTV close to 75%, everything has to run perfectly to make funds available within days,” added Tony.

“There are few lenders with one in-house valuer, so having two really helps us shorten the time from first contact to drawdown, but in this case the original inspection was undertaken by Strettons, then readdressed to us to confirm it met our criteria.

“But when you have a good team and you all work hard to make the right lending decision for an experienced developer, it is possible, as we have just proved.

“The client is an experienced developer with a portfolio worth around £4m and a good exit route that would see the property quickly refinanced on to a buy-to-let mortgage through Foundation Home Loans.

“Despite the need for a fast turnaround, cases like this are relatively easy for Signature to lend on.”

Tony continued: “We see the bigger picture and understand the decisions made by the client, so lending £500,000 for six months to help them expand their portfolio, makes a lot of sense for all concerned.

“It is immensely satisfying to receive an enquiry on 27th March and see the client drawdown the loan on 4th April – it proves we have good introducers like UK Mortgage Specialists and a good team that works hard to find ways to lend, not reasons to turn deals down.”

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