Category Archives: News

LUXURY BUNGALOW BUILD GOES AHEAD WITH BRIDGING LOAN

Luxury bungalow development goes ahead after Holme Bridging Finance (HFBS) approve a total of £75,000 to move the development to completion.

Luxury bungalow development goes ahead afterHaving paid cash for the land and funded the footings and block work to this point the developer approached HFBS for a bridging loan of £30,000 to progress the development beyond its completed DPC level to a watertight shell.

Once watertight HFBS were approached to arrange a second account of £45,000, registered as a second charge behind the existing first charge, to take the property to completion and sale.

Dan Yendall-Collings at HFBS says: “With this deal coming in two parts, beginning with little more than a built outline of a property, we did require the confidence in knowledge that the development was on track and would ultimately be saleable at the various stages of development. Once we received favorable valuations at each stage, and confirmation of the projected sale price of up to £325,000, we were confident in giving the go-ahead.”

The first charge loan of £30,000 was offered at 1.45% rate over 12 months which HFBS completed within eight days. The second charge of £45,000 was completed within a record breaking three days.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month with advances from just £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. No solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, no default rates. HFBS really mean business.

Simpler, quicker, cheaper.

HFBS are winners of lender of the year.

HFBS are winners of lender of the year

HFBS are winners of lender of the year but what does this mean you ask?

HFBS are winners of lender of the year.Well as you know we are a modest bunch at HFBS but there is something you need to know about us – that is if you didn’t know already!

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, no default rates. HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending.

It really couldn’t be any more simpler, quicker, cheaper.

HFBS ARE PUTTING TOGETHER THE PERFECT PRESENT THIS CHRISTMAS

Holme Finance Bridging Solutions (HFBS) are putting together the perfect present this Christmas busy wrapping up deals, but if you have money on your Christmas list it’s not too late as HFBS won’t be packing up for festive fun yet!

Holme Finance Bridging Solutions (HFBS) are putting together the perfect present this Christmas busy wrapping up deals, but if you have money on your Christmas list it’s not too late as HFBS won’t be packing up for festive fun yet!Christmas is a financing deadline for many people however, for those that have left it late, many conventional lenders will not be able to advance a loan between now and Christmas, however HFBS can!

You may know us for our small loan capacity, but we also have the capability to extend our swift working to advances of up to two hundred and fifty thousand pounds. And being entirely privately funded, the funds are ready and waiting.

Ian Broadbent, director at HFBS comments: “Brokers may be thinking there is little possibility of securing a loan for their clients before Christmas, however at HFBS that is what we do, quick bridging. We complete in less than seven working days, most within five, so there is still plenty of time. And with our unique specialist lending track-record and no solicitor involvement in most cases, the time spent on administration is substantially reduced to ensure a speedy and seamless loan process. So no need to wait. Want your money before Christmas, no problem!”

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.

TOP CRITERIA SEARCH GOOD NEWS FOR HFBS SMALL LOANS

Top loan criteria searches performed by brokers has been revealed as “minimum Loans” which is very welcome news for HFBS who specialise in this very specialised form of finance.

Knowledge Bank recently shared its research reporting that the most common criteria searches for regulated bridging had lost its top spot to those searching for minimum loan amount.

Ian Broadbent, director at HFBS says: “This is most definitely welcome news for HFBS, but not a surprise as we have seen a significant rise in enquiries from brokers looking for small loan amounts. The main benefit to our brokers is that our system is designed to avoid the use of solicitors, which significantly reduces costs. From the clients point of view this makes the ‘smaller’ bridge much more viable, and easy for a broker who may otherwise think its more trouble than its worth.”

“Most customers really value our unique way of providing finance and our ethos of providing simple, quick small loans without solicitor involvement. We start from as little as £5,000, once the broker has identified the facility and agreed it with the client we take it from there, and all with a very good kick-back rate for the broker.”

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, no default rates. HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.

UNCONVENTIONAL PROPERTY REQUIRES UNCONVENTIONAL FINANCE

Struggling to raise finance by conventional means, Holme Finance Bridging Solutions (HFBS) were approached to assist in helping a property developer complete a programme of renovations on an unconventional property build before letting the property out.

Not being of traditional brick and tile construction meant the developer was limited to the amount of standard lenders willing to take on the case. Adding to complications, it had been vacant for a number of years and required considerable renovation works to make it habitable from its semi-derelict state.

Dan Yendall-Collings, senior underwriter at HFBS says: “Conventional lenders wouldn’t look at this short term deal but we were willing to take a closer look. Purchased for £95,000 cash, £50,000 was required to get the property ready for a tenant. After meeting with the client and viewing the property, we were confident that the developer’s fully costed schedule of works were realistic and achievable and happy to lend to get the project complete and viable for a longer term refinancing option.”

HFBS required a valuation in this instance but once complete and satisfied with the feasibility of the works proposed a two-stage drawdown plan was agreed. Starting with an initial net advance of £25,000, the second account would be provided once stipulated works carried out are completed subject to HFBS inspection. The loan agreed is over a 12 month term at a rate of 1.35% per month to be paid once the property is successfully re-financed.

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.

Will Anything Change Come Halloween

Halloween is the date when we leave the EU and we’d like to assure you they’ll be no ghoulish behaviour coming from the team at HFBS when it comes to bridging finance.

For many the 31st may signal knee jerk reactions to change terms, but take comfort. We will continue to shun bank or other corporate funding to plough our own furrow with significant increases in our private funding lines.

We are pledging now that there will be NO knee jerk reactions from us, NO reducing LTV’s, No increasing rates and definitely NO pulling of our products in the days following an exit. We value our introducers support and will continue to do so.

Here at HFBS we are known for our straight talking, there is never any uncertainty when dealing with us, which is why we want to take this opportunity to put your mind at rest. Go ahead, forward plan with confidence!

HFBS is one of the very first to be involved in bridging finance. We’ve been there and seen it and come out wiser and stronger. Be confident that as a privately funded lender we can make immediate decisions and in most cases complete without the aid of solicitors. HFBS are absolutely dedicated to supporting and building long lasting business relationships now and in the future.

SPEED WAS OF THE ESSENCE ON BRIDGING DEAL

Acting quickly is something Holme Finance Bridging Solutions (HFBS) are well known for, so when they were approached by a Broker to act quickly for a client who had a ten-day completion deadline they put into a motion a funding strategy that would deliver in five days.

After putting in a sealed bid for £73,000 to purchase an investment property the client needed to borrow £40,000 towards the purchase price and the estimated £15,000-£20,000 required to convert the one bedroom property into a standard three bedroom terrace house.

Dan Yendall-Collings, senior underwriter at HFBS says: “It was clear to see there was potential in this development as the property next door had been converted in exactly the same way. As it stood the property had one bedroom with living space across one floor over an integral garage on the ground floor. Developing this property into a three bedroom property would produce an expected end value of £180,000. With that return, evidence of it working before, and the fact planning permission wasn’t required, we were happy to fund the project.”

HFBS sent out the offer pack on day one. Visited the property on day three meeting the client and the selling agent to assess current condition and feasibility of works proposed. Funds were released on day five .

With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending. Simpler, quicker, cheaper.

Let’s take the lead and not wait for regulator intervention

I am a great advocate for business generating profits however there is a fine line between fair and ethical practices on which a long term business can build and some of the less ‘attractive’ practices.

In my opinion the recent media which continues to try and justify ‘Default’  rates for short term ( bridging lending ) treads the wrong side of that line. The argument made FOR, which I have taken directly as a quote from a recent article  is:  ‘ Default rates help to focus the mind of a borrower as they approach the term end of a facility and encourage them to discuss alternative options before it’s too late to do so.Let’s take the lead and not wait for regulator intervention

In my opinion this is wholly a false premis. A responsible bridging lender should be in regular contact with a borrower at various stages of the contract , gently reminding the client of the term remaining and ascertaining the level of progress made in respect of the exit. This gives the lender an understanding of any problems which may arise AND the opportunity to discuss those ‘alternative options’ . The application of a default rate should not be a  pre-requisite of these discussions.

Bridging finance is already a relatively expensive way for a client to borrow ( though I accept much cheaper now than in years gone by ) and sensible lenders with good underwriting should be able to make a fair and ethical profit on their day 1 rate. Moreover, on those occasions when things do not go to plan, the lender continues to profit without additional acquisition costs by applying further interest at the initial contractual rate for that additional time. In my opinion Default Rates have only one benefit and that is to a lenders ‘bottom line’.

As a responsible lender I would ‘implore’ all participants in the market to carefully consider if this model is in all our best interests. Let’s take the lead and not wait until inevitable intervention by regulators who recognise poor practice!

The benefits of being risk aware

The benefits of being risk aware

Comment from Ian Broadbent, Director at Holme Finance Bridging Solutions.

It is unusual in the short term lending market to have been established pre 2000 however such experience, whilst resulting in many grey hairs for it’s directors, does give HFBS a unique perspective on the market. The greatest period of growth in our market has occurred over the last 12 years and been sustained, in part, by a strong property market. Is it inevitable this will end?

This sounds like a negative opening but it is not intended to be! At HFBS we would answer the primary question, of course and so what? The property market has always been cyclical and it is perfectly possible ( even probable ) that we are entering a period of much steadier growth/ demand and even some modest potential softening of prices within our underlying assets. This is not brexit, fear of Corbyn or taxation changes to investment property, although these all have an impact, it’s a cycle!

As always good quality, professional intermediaries and lenders will be best placed to work in this more ‘staid’ environment. Some more naïve players may ultimately pay a price and the market may contract a little but the best will continue to provide a valuable service to clients. Good preparation is simply ensuring that those important relationships are formed with experienced parties who understand the need for a long term sustainable market. At HFBS we have the experience to meet those demands and will continue to view applications in a positive and prudent manner.

With three key members of staff sharing almost 100 years of experience between them and a unique bridging proposition we intend to be here a very long time.

HFBS HELP CLIENT TAKE BACK POSSESSION OF HOME

HFBS HELP CLIENT TAKE BACK POSSESSION OF HOME

When an interest only mortgage came to the end with no funds to pay the final sum it looked like an important family asset was about to be repossessed, until Holme Finance Bridging Solutions approved a loan to recover the situation.

HFBS HELP CLIENT TAKE BACK POSSESSION OF HOMEThe client had mistakenly ignored the due date for final repayment and latterly failed to secure refinance due to poor credit. Now, with the realization that a sale was the obvious exit, the mortgagor had lost patience and was due to repossess.

HFBS recognized that the client, albeit belatedly, had acknowledged the need for a sale and the best outcome for them was to secure this themselves with a sensible marketing period (avoiding significant legal costs and the potential for a sale to be completed by the mortgagor at a lesser price). Approached for the mortgage redemption sum of £216.900, HFBS were able to complete very quickly providing the client with the best outcome.

Ian Broadbent, director at HFBS says: “The property was valued at £385,000 so the LTV looked good enough to allow for a satisfactory end to what was a very stressful situation for the client.

“We always look for the best outcome for clients. It was clear that allowing their property to go into possession with the monthly accrual of costs and fees wasn’t going to help but only compound the situation. Properties in possession typically don’t achieve the value required. This way we’re confident of a successful sale at the market rate.”

HFBS provided the loan over a 12 month term and a rate of 0.95% per month to be paid once the property is successfully sold.

 With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.