Recognise Bank delivers £975,000 bridge for Cheshire holiday let refinance

Recognise Bank has completed a £975,000 bridging loan to refinance a residential property in Cheshire and release equity.

The facility allowed the borrower to restructure their finances ahead of securing longer-term funding.

The property is a large residential house with a swimming pool, currently operating as a short-term holiday let and serviced accommodation.

The borrower, who owns and lets property, required funding to refinance existing borrowing and consolidate unsecured debts and family loans following a change in personal circumstances.

Introduced by Paul Mak of Pomegranate Commercial Finance, the 12-month bridging facility was agreed at 75% LTV, with interest retained for the duration of the loan.

The funding will enable the borrower to address existing financial commitments and improve their credit profile, with the intention of refinancing onto a longer-term holiday let or BTL mortgage once their financial position has stabilised.

Recognise Bank assessed the underlying property security and the borrower's refinancing plans to structure a short-term facility suited to their requirements.

Heather Mitchell, lending manager at Recognise Bank (pictured above), worked with the introducing broker to progress the transaction.

Heather commented: “Not every lending decision can be made by looking at a borrower's current financial position in isolation.

“In this case, it was important to understand the circumstances behind the funding requirement, the strength of the underlying property and how the borrower intended to move towards a longer-term solution.

“By taking a practical view of the overall case, we were able to provide a facility that gives the borrower an opportunity to put their finances on a more sustainable footing.”

Paul said: “This was a case where understanding the client's wider circumstances was particularly important.

“The immediate priority was to secure a facility that would allow them to address their existing commitments while retaining the flexibility to refinance when their position improves.

“Recognise Bank approached the application with a clear understanding of what we were trying to achieve.

“Heather and the team were willing to look at the full picture, which made a real difference in finding a suitable solution for the client.”