Largemortgageloans.com was approached by the woman for short-term finance to complete an off-plan purchase for £2.675m.
A deposit of 20% had already been paid and contracts exchanged.
Although her broker was in the process of securing a long-term mortgage, this could not be agreed in time, and without a short-term solution the client would have lost both the property and the deposit.
The main hurdle for the client was that she needed to complete within 10 working days as well as proving that she had enough income, which was not straightforward given all her documentation was in Russian.
Largemortgageloans.com turned to Borro because of its reputation for dealing with international clients, market knowledge, contacts and ability to provide loans quickly.
Borro moved rapidly and lent against the value of the property rather than the lower off-plan purchase price.
It was also flexible enough to offer a six-month term, but with just the first four months interest rolled up, as this was the only way to achieve the desired net lending.
This also gave the client enough time to pay for the bridging loan with her long-term exit mortgage.
Another challenge was to make sure the funds were in place to meet the purchase deadline.
Largemortgageloans.com and Borro worked daily with their lawyers, the client in Russia and the client’s lawyer to make sure due diligence was completed quickly.
As a result, Borro issued Heads of Terms in just four working days and all the legal requirements were met in time for the client to complete as planned – saving the client’s deposit and avoiding any late completion penalties from the developer.
Case study details:
Rate: 0.98% per month
Term: 6 months
Type: Interest rolled up for four months then serviced for two months
Loan Purpose: Residential purchase
Lender’s Arrangement Fee: 1%
Early Repayment Charges: None, just a minimum of 1 month’s interest charged
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