The purchase of the site — which included a single residential dwelling in addition to multiple commercial units on short-term leases — was structured with a deferred completion date for the residential asset.

UTB assisted with the funding by executing a first legal charge over a residential asset and a second legal charge over another BTL property due to the borrower having limited liquidity.

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Despite the specialist bank being unable to place much reliance on the strength of the individual covenants, UTB was satisfied to proceed based on the number of units, the diversification across the portfolio and the underlying demand for units in the area.

“Not being tied to a product range, we were able to offer 100% funding across multiple properties on a two-year term with interest rolled up,” said Gerard Morgan Jackson, head of structured finance at UTB (pictured above).

“Taking security over a range of assets, using first and second charges, allowed the client to use his capital for other projects rather than a deposit.”