It teams up with the lender to provide a solution to the complex case with adverse credit
Fintech broker Loan.co.uk has helped a landlord extend her property portfolio despite adverse credit, with a £1.1 million complex bridging loan.
The client, who had unsecured lending arrears, needed to raise 100% of the purchase price, including funding for works to the property, but was struggling to find a solution until she turned to the broker for assistance.
“Our experts looked through the existing portfolio and were able to use three of her four buy-to-let properties and the purchase property to use as security,” Paul McGerrigan (pictured), chief executive at Loan.co.uk, related.
“They took the case to the commercial underwriting team at Together as it has exceptional experience and can look deeper into cases and analyse all merits carefully.”
He explained that as an added advantage, only a full valuation was necessary on the purchase property, with automated valuation models being acceptable for the other three. This, he said, saved the client valuation fees and sped up the process.
“Other issues with a first charge lender for one of the properties cropped up part-way through the process, however our expert team was able to liaise with them and iron out the issues,” McGerrigan added.
“It was a complex case with multiple properties being used for the purchase, however we managed to navigate it and with our in-depth lender knowledge and experience, as well as our strong relationships with lenders, we were able to get this over the line.”
The client was able to take out a 12-month bridging loan at 0.8%, with no ERC or exit fees, for the North London property – a large four-bedroom residential house in a sought-after location near schools and a supermarket. Her intended exit strategy is a refinance of the portfolio once renovations are complete on the new acquisition.
“On the face of it, this would seem an impossible task, to secure this £1.1 million property with such a complex funding make-up, as well as adverse credit,” Sundeep Patel, director of sales at Together, said.
“However, with Loan.co.uk’s depth of experience and problem-solving ability, and Together’s exceptional capability in the bridging market – backed by the depth of human underwriting experience – we were able to get this deal done and delight yet another client.”
