The Client Background
The client owned the property for several years before experiencing a challenging period following the death of his wife, which severely impacted his business. As a result, he fell behind on his mortgage, and the bank eventually took possession of the property.
He initially approached a specialist broker who placed the case with a lender, but the proposed solution fell short. Not only was the lender unable to raise the required funds, but the terms were also expensive at 1.10% per month, a 2% lender fee, and a £14,040 broker fee.
The “Positive” Solution
With the first option unsuccessful, the client was introduced to James Oldham, Head of Bridging at Positive Lending, for a fresh look at the case.
The Loan
Product: Bridging Finance
Lender: MT Finance
Loan Amount: £1,352,000
LTV: 65% gross
Rate: 0.95% per month
Monthly payments: Retained interest
Broker Commission: £13,520
Process: Positive Lending advised
James explored alternative options in the market and placed the application with MT Finance. They offered a £1,352,000 regulated bridging loan at 0.95% per month and allowed the existing valuation to be retyped, saving the client valuable time and expense.
By utilising retained interest (no monthly payments), the overall cost was reduced while providing the higher funding needed.
The “Positive” Outcome
Positive Lending secured the £1,352,000 loan at a 65% gross LTV, successfully meeting the client’s requirements and repaying the previous debt in full.
Why Choose Positive?
Sometimes a complex case doesn’t need a completely new approach; it needs an experienced specialist to look at it differently.
Although this case had already been through another broker, lender, and valuation, the initial solution still lacked sufficient funding and carried a high cost.
James’s market knowledge and Positive Lending’s broad access to short term lenders ensured an alternative lender and better fit.
For brokers dealing with complex bridging requirements, having an experienced dedicated team to reassess a case and explore alternative options can make all the difference.