Shawbrook and Vantage Finance complete £189,000 bridging loan for auction purchase and refurbishment project

Shawbrook Bank and its strategic partner, Vantage Finance, have completed a £189,000 bridging loan to support a client with the auction purchase and refurbishment of a three-bedroom home in Birmingham.

The customer, an experienced portfolio landlord, planned to refurbish the property and sell it, with the works initially estimated to cost around £18,000.

The property was later found to have some issues with damp and asbestos, as well as requiring some repairs to the roof, meaning an additional £15,000 was needed to complete the renovations.

Shawbrook Bank was able to provide the bridging loan at 85% LTV, including its ‘lending for refurbishment costs’ product addition, enabling the customer to raise £22,000 of the funds needed for the purchase and to complete the works and sell the property.

The lender financed the deal within the requested six-week timeframe for the auction purchase.

Gavin Seaholme, head of sales at Shawbrook Bank (pictured above), said: “This case really highlights the benefit of our innovative lending for costs product addition. 

“It has proven extremely popular, not only helping customers quickly secure their investment opportunities, but also to complete refurbishment projects to maximise their returns.

“We launched the product option to meet the demands of the market, and with renovated properties offering the chance to attract more tenants, secure higher rents and boost the value of a property, it’s clear to see the need for this type of solution is as strong as ever.”

Lucy Barrett, managing director at Vantage Finance, added: “In the three years since Shawbrook launched this innovative product option, it has become an important string to the professional investors bow, supporting many of our clients along their property journey. 

“With the bridging market continuing to gain momentum, it’s great to see lenders like Shawbrook meeting this increasing demand, and we look forward to finishing the year very strongly in this space.”

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