The case — which was introduced to the bridging lender just after Christmas — was completed in nine working days at 58% LTV at a rate of 0.85% per month, over a 12-month term

The borrower had been in default for almost two months, was being charged a very high standard rate of interest and had already incurred significant additional fees.

Central Bridging received a concise and accurate summary from the broker, authority from the borrower to deal directly with the existing lender, and was able to negotiate a five-figure reduction in the redemption figure.

•   B&C roundtable: surviving a heated bridging market and the rise of regional lending
•   Central Bridging completes £2m second charge bridge
•   Central Bridging completes £1.16m loan in seven days

The original lender was then redeemed with the new loan saving the borrower over 2% per month.

“This case was a classic example of why brokers and clients should look beyond a superficially attractive discounted rate and beware the sting in the tail,” said Brian West, director at Central Bridging (pictured above).

“To us, the original lender’s loan period looked unrealistic from the outset and the client’s strong equity position had encouraged them to impose excessively harsh standard terms.”

The 12-month term will enable the borrower to fully market and maximise the sale value of the security property, with the loan being repaid following the sale.