Gavin Diamond

UTB completes £620,000 bridging loan for SME developer

United Trust Bank (UTB) has provided a £620,000 bridging loan to allow an SME developer to continue with its next project.

The specialist bank’s bridging team was approached to provide a short-term facility to the client secured against a recently completed development of four homes, as well as two other investment properties owned by the company.

The developer required the bridging loan to repay commercial mortgages and an existing development finance loan against the new-build houses and to release equity to enable it to continue with its next project while awaiting sales.

The proposal had already been declined by another lender due to the main security properties being of non-standard construction, although they were mortgageable.

During the underwriting process, the UTB team ran into a number of planning and title issues which needed to be resolved before the funds could be released.

The most critical related to planning conditions for environmental remediation which had not been satisfied. 

UTB’s underwriting team worked with its credit team and together the lender liaised with the borrower and its professional team.

Together they were able to rectify or mitigate the issues satisfactorily to enable the loan to be provided at 68% LTV.

“This application was anything but straightforward with a stumbling block seemingly appearing around every corner, starting with an application that we knew another lender had already turned down,” said Gavin Diamond, commercial director of bridging at United Trust Bank (pictured above).

“Instead of walking away from it, we worked hard to understand and overcome all the issues involved to make the deal happen and ensured a good outcome for the borrower and the broker.”

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