Second charge bridging loan for complex income structure
By MT Finance
Client circumstances:
Our client required funds to invest in a new joint assisted living property venture. They wanted to release capital from one of their investment properties – a flat with an open market value of £1.1 million and an existing first charge of £581,000.
However, the client had a rather complex income structure as they receive income from their existing business in irregular, lump sums. The buy-to-let mortgage process would have been long and onerous. Instead, their broker contacted us straight away.
MT Finance solution:
As an asset-based lender, we focussed on the quality of the asset and the client’s future plans. To show their capacity to service the loan, the client provided us with three month’s bank statements and in just over three weeks, we provided a £146,900 second charge bridging loan over the client’s BTL property, at 70% loan-to-value over a 12-month term.
The benefits:
By taking out our bridging loan, the client had the breathing space to set up their new business venture. Once it starts to show a track record of income, the client will refinance through a combined mortgage over their portfolio and redeem the bridging loan. Should they wish to repay before the end of the 12-month term, they won’t be penalised for doing so as we do not charge any early repayment or exit fees.
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