Urgent Regulated Bridge – resolving a poor financial position

Background

Our client was in a poor financial position and struggling to keep up with repayments on her buy to let mortgage and also a second charge loan facility which she was servicing monthly.

This was principally attributable to receiving poor advice from another broker, which led to her taking out a punitive second charge loan facility at an eye-watering interest rate of 18% per annum. The high interest payments meant that our client was in a considerable negative deficit each month against the rental income she received from the property.

The second charge lender served a formal demand which meant our client was required to repay the second charge facility in full within 7 days whilst also incurring default interest of 3.5% per month.

Solution

Simply put, we had to act fast utilising our strong relationship with a panel lender and working closely with our client’s solicitor.

We arranged a 12-month regulated bridging facility at a considerably cheaper interest rate of 0.58% per month, with repayment being through the sale of another property. This was with added advantage of no early repayment charges meaning that the earlier that the loan was redeemed the more than she could save in interest.

Our client was very pleased that we were able to give her the breathing room and save her a significant amount of money:

“Amazing company. Luke was pro active, always on hand to take calls and reply to emails and knowing the situation Luke acted quickly and professionally to get the deal through smoothly and quickly, I would highly recommend” A Chiriaco (Review on Trustpilot), 5 October 2020

Bridging Facility: £300,000

Term: 12 months

Asset Value: £578,000