Mike Walters, United Trust Bank

UTB completes bridging loan in six days to save BTL purchase




United Trust Bank's bridging team has completed a £150,000 short-term loan in six working days, despite the challenges caused by Covid-19.

The case — which required funding to replace a previously agreed BTL offer for the purchase of a property — was introduced by brokerage Alexander Hall.

However, the valuation had expired and, as instructing a physical valuation was not possible due to lockdown restrictions, it meant there were fewer lender options available.

UTB managed to step in at short notice and provide a bridging loan so that the customer could complete the BTL purchase.

The bridging loan was offered to the purchaser’s wife and secured on her home, using a desktop valuation which was within its LTV range.

It took six working days between UTB issuing a decision in principle and the customer drawing down the loan.

“This is a fantastic example of all parties pulling together to ensure the customer could complete his BTL purchase,” commented Mike Walters, sales director of property intermediaries at UTB (pictured above).

“Peter Corbett, [associate director] at Alexander Hall, did a great job helping his client to secure the funding he needed by thinking outside the box and guiding his client to consider bridging as a quick and viable solution to his problem.

“Although the Covid-19 lockdown is presenting additional challenges to lenders, brokers and lawyers, the investment made by UTB in fintech and other service enhancements over the last 18 months is helping us to overcome barriers to lending and enabling us to continue supporting brokers and their customers.”

In April, the specialist bank launched automatic ID verification sharing with bridging dual representation solicitors via the UTB Nivo app.

AVMs can also be offered through the app.

Greg Cunnington, director of lender relationships and new homes at Alexander Hall, added that, even during these times, intermediaries and lenders can work together to find solutions for clients and act quickly.

“This case with UTB has highlighted how important it is to be working with proactive lenders who have the systems, flexibility and desire to lend.”

JMW Solicitors LLP — representing both UTB and the borrower — also ensured the case completed quickly.

In March, the bank reported that it had increased new lending by 21% in 2019, with a total of £994m of loans completed throughout the year.

Leave a comment