Nick Jones

When fast finance can save an auction purchase

Bridging loans can often prove invaluable in providing clients with the finance they need when they're up against a tight deadline, as the following deal that Together funded clearly demonstrates.

A broker contacted us after their customer thought he’d secured the finance – through a commercial mortgage – that he needed to buy a large, converted house at auction. However, he was left in a difficult situation when the original lender said they’d be unable to meet the 28-day deadline following a delay in completing a valuation report.

Failure to provide the money needed would have meant the property professional losing the 10% deposit he’d paid at auction. Luckily, the broker who was dealing with his case had heard of our reputation in providing speedy bridging finance, so contacted Together. It was 5pm on a Friday and the clock was ticking.

However, despite the tight timescale, the broker was able to send over the necessary documents to our team, which considered the case over the weekend, uploading documents to the My Broker Venue (MBV) online portal and carrying out a desktop valuation.

The solicitors had already carried out the conveyancing work when the client bought the house at auction. We sent out the application and legal packs, which were reviewed on the Monday morning, and agreed to provide a six-month £135,800 commercial bridging loan. This completed five days later at 70% LTV in line with our lending criteria.

The customer plans to use his own money to refurbish the building, rent it out to tenants and exit the commercial bridging loan by refinancing the property with a specialist lender.

It was a real team effort – and one which clearly shows the benefits of brokers working closely in partnership with lenders to get the best outcome for their customers.

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