Let's discuss your requirements
The UK’s Elite Property Finance Master Broker
Refinance Heavy Refurb
Lender – Shawbrook Bank
Client – Experienced Developer / Landlord
Loan Amount – £500,000 (acquisition stage)
Interest Rate – 0.89% pcm
Experienced property development company had their High Street Bank pressurising them to repay their development finance loan. Applicants paid down most of their loan to £150k remaining. Unfortunately, by the bank forcing this, they used their cashflow which would have finished the project.
The newbuild development of 9 flats was a single block, whereby the property had just had the roof put on. The introducing broker was trying to help the applicants secure finance but the expensive development finance (including monitoring fees) and bridging finance options, were a stumbling block.
We were approached to look at none development finance/normal bridging lenders schemes for said broker/applicants. The challenger banks were a hybrid option however to meet their criteria the property needed to wind and watertight. Fortunately, the windows and doors were to be fitted the following week.
Having done a number of these, we approached Shawbrook Bank and requested £500K, this was to repay their Bank loan and give them £300k to finish the project and c.£50k was held back to service the loan, therefore the applicants didn’t have to repay anything for the term of the loan.
The introducing broker was delighted as he received 50% of the proc fee (1.95%) of which he received 0.975%, very close to what he would have received by going direct to the market, typically 1%. However more importantly his clients were delighted to secure this facility at reduced cost of other funding suggested whilst also providing them with additional time to achieve sales.
Once finished the applicants used a mixture of flat sales and BTL re-mortgages which redeemed the loan in full, well within the term.
Request a callback
Newsource Commercial Finance Limited (NCFL) is registered in England & Wales No. 08374586 Registered office: 12 Granby Road, Harrogate, North Yorkshire, HG1 4ST - Data Protection registration No. Z3536079 / NCFL is authorised and regulated by the Finance Conduct Authority (FCA): No. 718948. Some transactions are not regulated by the FCA
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Copyright 2019 newsource commercial finance Ltd