Octane Capital

Octane completes £900,000 bridging loan in four days

Octane Capital has completed a £900,000 bridging loan to an experienced property developer in four working days.

The borrower — who was introduced to the specialist lender by Mortgages for Business — is currently building nine houses in Kent, of which six are complete and the other three are expected to be finished before August.

The developer originally intended to refinance onto a term loan with a specialist bank, which needed to complete by a particular date because he had committed to purchase some land and needed additional funds to help his daughter with her home deposit.

However, 10 days before completing, it came to light that the six finished houses did not have building control sign-off and new-build warranties because the entire project wasn’t finished.

While a valuation had been carried out for the term lender, the surveyor was not on Octane’s panel, but the lender’s director of risk, Matt Smith, agreed to accept an asset manager visit and a personal guarantee from the borrower.

Octane’s risk team also received additional reassurance when building control confirmed that site visits were up to date and satisfactory.

Paul Cain, partner at Ronald Fletcher Baker was the solicitor for the deal, while the asset manager report was carried out and completed in 48 hours by Bridgeshield, which meant that the £900,000 loan, offered at 42% LTV, was provided in four working days.

“This was a textbook bridge,” commented Matt. “Of course, a bridge is only as good as the broker and Mortgages for Business were on top of their game as ever.”

Jeni Browne, business development director at Mortgages for Business, added: “When the clock is ticking and the deadline tight, Octane is one of the best lenders out there. 

“It has a unique way of approaching deals and just seems to instantly get it and get it done.”

Last week, Octane completed its largest ever loan, a £17.35m BTL facility, which involved the refinance of 40 properties across London, comprising more than 160 units. 

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