Tag Archives: bridging finance

In uncertain times, think certainty!

Brexit! Not again I hear you scream! But this is positive news so please bear with us.

Many introducers have recently reminded me of the absurd knee jerk reaction of some lenders following the June 2016 referendum result and the inevitable return to normal when nothing much changed!

As with all such reactions whilst short term in nature it did cause significant disruption to introducers and their clients alike. 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.

Take comfort in amidst of all of this uncertainty that we have continued to shun bank or other corporate funding to plough our own furrow with significant increases in our private funding lines and a growing book value.

Brexit or remain, I suspect we can all agree on one thing, the continued lack of any certainty at such a late stage is farcical. That is why 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 however that takes place. We value our introducers support and will continue to do so. Forward plan with confidence!

HFBS is one of the very first to be involved in bridging finance. We’ve been there and seen it all to 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. We’re all about getting someone where they need to be and supporting both them and their introducer to a successful exit strategy without imposing penalties!

We are happy to consider the ‘quirkier’ deals or those outside our terms. HFBS are absolutely dedicated to supporting and building long lasting business relationships.

SHORT TERM BRIDGE FROM HFBS EASES STRESS

SHORT TERM BRIDGE FROM HFBS EASES STRESS

Short term loan from HFBS eases a stressful situation and agrees a short term bridging loan of fifty six thousand pounds to prevent an investor losing a significant BTL portfolio.

SHORT TERM BRIDGE FROM HFBS EASES STRESS

With a failed business and subsequent mortgage arrears, leading to the threat of repossession, quick action was needed to secure a London BTL portfolio and clear debts to enable a clear and structured plan of action for financial security.

Dan Yendall-Collings, senior underwriter at HFBS says: “We’re always cautious when a client is in severe difficulty. Unfortunately for our client his business had failed resulting in sole reliance on the rental income from his BTL portfolio. Regrettably it was a struggle and led to mortgage, ground rent and service charge arrears. We met to discuss his plan of action and agreed to clear his debts whilst he freed up a significant amount of cash from the sale of two properties from his portfolio.”

From application to pay-out, even waiting for confirmation of mortgage arrears and ground rent arrears, HFBS completed in just five working days. Selling the properties will free up significant cash reserves allowing the loan to be paid off promptly enabling a comfortable retirement for the client.

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.

Are bridging customers likely to be affected by the PRA’s new BTL affordability checks, which could prevent borrowers exiting bridging loans due to the increased rental yield hurdles?

PRA’s new BTL affordability checks…

Are bridging customers likely to be affected by the PRA’s new BTL affordability checks, which could prevent borrowers exiting bridging loans due to the increased rental yield hurdles?

In order to consider the impact of the PRA’a intervention in the Buy to Let market we firstly have to identify the two distinctive borrower ‘types’ who may utilise bridging finance in respect of these purchases.

There are those who wish to ‘flip’ a property for a quick return and in these circumstances the properties are often sold to private purchasers wishing to occupy them and there is therefore no impact, however many borrowers utilise such finance as a ‘bridge’ to a longer term mortgage solution, how will they fair?

The answer is mixed. The more professional investor often adds significant value to a property before refinancing longer term, thus reducing the required LTV and in many cases the rental yield provides greater coverage meeting the higher requirements. In addition they often have significant ‘stand alone’ income which is likely to be considered by the specialist Buy to Let funder. A combination of these things may assist in mitigating the impact although it is impossible to get away from the fact that the days of highly leveraging a portfolio to expand rapidly is on the way out!

The less experienced (but no less entrepreneurial individual) may have neither the stand alone income nor the ability to add such value, this will no doubt be the harder affected group.

Once again ill thought out government policy has a disproportionate effect on those simply trying to add a little security to their future.

As bridging lenders we all want to retain profitable business models and good client relationships. No one wishes to see a spike in litigation and possessions therefore the application of the new rules have to be carefully considered when advancing that bridging loan.

As always change brings fresh considerations and those that can apply a little common sense will prevail. There are new challenges and likely some moderate effect on volume but as always the best lenders and the savviest borrowers will thrive.

Bridging finance

RE-BRIDGE ALLOWS DEVELOPER TO MOVE ON

A property developer has avoided paying a de-fault rate on a bridging loan thanks to a £55,000 re-bridge loan on a property valued at £360,00 with Holme Finance Bridging Solutions allowing development to progress.

The developer purchased the property earlier this year at auction using a bridging loan with the intention of splitting the property into two self-contained flats, selling one off to clear the debt and retaining one as an investment.

Unfortunately unexpected hold-ups in the planning and development processes meant a delay in the development which lead to an inability to keep to the original bridging loan terms.

Ian Broadbent, Director at HFBS says: “The client approached us after his initial bridging loan lender refused to consider an extension to the term without applying a default rate, nearly double the original rate, and charging fees again.

“We were able to assist and redeem the existing bridging loan on time whilst providing the developer with a six-month term on the re-bridge and plenty of time to achieve a sale on one flat to repay the loan.Bridging finance

HFBS are always more cautious when re-bridging a bridge however after meeting the developer face to face they were satisfied the project would be successful once back on track.

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 of 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.

Bridging deal is wrapped up in time

Bridging Deal Is Wrapped Up In Time

Seasoned property developer approaches Holme Finance Bridging Solutions (HFBS) for £75,000 against the purchase price of £130,000 to fund the purchase of a development property with bags of potential from auction.

Unable to fund the property through conventional mortgage routes the developer required a funding partner that could meet the strict deadlines required when buying at auction.

A valuation confirmed the property would not be mortgagable by conventional means in its current state but confirmed a ‘cash value’ and approximate costs involved to get the property to a habitable and mortgagable state. HFBS were satisfied the development could be completed successfully and advanced the funds required within 10 days.

Ian Broadbent, Director at HFBS says: “We had dealt with this developer before and knew that he not only had the knowledge, but the skill and experience to complete the task. We were able to liaise with the client’s solicitor and transfer the funds over for the purchase quickly to allow the property to be renovated and sold as soon as possible.”

HFBS offer 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. No solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules. Simpler, quicker, cheaper.

instant decisions

Brokers Prefer Instant Decisions

Contrary to popular opinion the appetite for investment property post Brexit remains strong. Unlike many lenders whose immediate reaction was to withdraw funding or impose significant changes in criteria Holme Finance Bridging Solutions (HFBS) recognise both brokers and their clients need stability which is why their sensible approach to underwriting is simply a prefered solution.

HFBS provide clear underwriting guidance, make instant decisions and, importantly, haven’t imposed changes in criteria on pipeline deals or failed to honour an agreed advance. This winning formula for the company has seen a steep increase in broker approaches and record lending levels achieved in July.

With an average completion 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.

Ian Broadbent, Director at HFBS says: “We are in the business of supporting our brokers and  individual clients with a genuine short term need and consistent, reliable lending decisions are key. A lot of lenders ran for hills post referendum but we haven’t because demand is there and we’re simply giving our brokers what they want – a good working relationship, quick turnaround of funds, and simplicity.”

HFBS offer the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month on advances from £50,000. 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.

property auction

PROPERTY AUCTION FUNDS

Getting financial arrangements in order before a property auction was a top priority for a London Property developer looking to maximize profit.

With a refurbishment project coming to end, and with agents just instructed to market the property, he was eager to move on to his next development and keep his team in work.

Planning to buy a property at auction he wanted to go in as a cash buyer to allow for a quick completion and limit the time of inactivity. The £172,000 advance was needed within a very tight timeframe, which ruled out traditional mortgage lenders.

Ian Broadbent, director at Holme Finance Bridging Solutions says: “The developer’s broker has had many dealings with us over the years and knew that if we said it could be done – that it would happen!

I personally completed the paperwork with the client and released the funds in just four working days. It would have been quicker but the size of the advance and requiring the security address to be valued prevented that, still four working days is pretty impressive.”

He was able to purchase his property at auction and able to continue to his next development.

Holme Finance Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending.

HFBS prides itself on being very different, filling a niche in the market to complement existing providers of short term finance and completing the more straight forward application without the need for solicitor involvement. Simpler, quicker, cheaper.

short term loan

SHORT TERM LOAN LAUNCH OFFERS APPEALING FLEXIBILITY

Market leading short term loan rate launched by Holme Finance Bridging Solutions is good news for short term loan borrowers.

As demand grows for bridging finance HFBS have reacted to the trend by launching their new super low rate of 0.95% a month for first and second charge lending.

Applicable to advances of £100,000 plus, borrowers can take advantage of the new rate secured against a standard buy to let and business borrowing with a maximum 70% LTV.

The company is offering the additional bonus of completion without solicitor involvement, moderate adverse being considered, and super quick turnaround within one week.

Ian Broadbent, director at Holme Finance Bridging Solutions says:  “From our solid foundations we are strengthening further our position in the short term loan market to offer a more flexible solution that mainstream lending.”

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.

HFBS prides itself on being very different, filling a niche in the market to complement existing providers of short term finance and completing the more straight forward application without the need for solicitor involvement. Simpler, quicker, cheaper.

joint venture

JOINT BUSINESS VENTURE ON TRACK THANKS TO LOAN

A joint business venture that looked set to fail avoided delays thanks to quick thinking from bridging loan lender Holme Finance Bridging Solutions.

After failing to secure commercial development finance, and refusal from a mortgage lender to raise the funds via a Buy to Let property, the business venture hit a brick wall.

With workmen lined up and 95 thousand pounds needed to acquire the development and secure the business venture, delays were not an option.

Holme Finance were approached with the request for a 95k loan, which included clearing a 20k business loan which was secured on the client’s BTL; the balance of the funds were to purchase the building development project jointly with his business partner.

Ian Broadbent, Director at Holme Finance Business Solutions says: “Our client needed to complete as fast as possible to secure his new business venture and acquire the development plot. Due to the purpose of the capital raising it was a contract that was exempt from FCA regulation and so we were able to advance the full amount needed and within the timescales that he required to save the deal.”

HFBS cleared the small business loan directly and released the additional sum to the client by securing against the BTL property and cross charging the client’s own residential property. Due to the significant amount of equity in the client’s own home address HFBS were able to rely on a drive-by valuation helped to speed up the process and also saved the client over £500 in upfront fees.

Holme Finance Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending.

HFBS prides itself on being very different, filling a niche in the market to complement existing providers of short term finance and completing the more straight forward application without the need for solicitor involvement. Simpler, quicker, cheaper.

 

high rates

FRESH START LOAN AVOIDS HIGH RATES

Holme Finance Bridging Solutions approve an 80k re-bridge deal saving client from a default rate of 5% a month on a previous bridging loan – high rates can be avoided.

This may sound like risky business but Ian Broadbent from Holme Finance Bridging approaches each case on an individual basis taking the time to understand the client’s need and personal situation – failing to redeem a previous bridging loan isn’t an automatic no.

In this case the client requested funding on a second charge basis to redeem an existing bridging loan account. The six-month bridging loan was due to be repaid from the sale of a family house, however that didn’t go according to plan. With the six month loan term about to expire, a solution was needed to avoid the astronomical repayments at the lender’s default rate of 5% per month.

Ian Broadbent, director at Holme Finance Bridging Solutions says: “On paper this probably would have scared many providers away but after speaking to our client it became clear our client had no control over the sale of the family property falling through. He wanted to clear the existing bridging loan to prevent it from jumping to the default rate and have a fresh start. The client had now had a secondary exit strategy in mind and as such we were confident that our option would give the client the time needed to get things back on track.

The deal made sense and the client was fully aware of the situation and the short-term nature of the agreement. Holme Finance Bridging Solutions battled the Christmas post and the legal administration concerning the redemption figure and paid out in just eleven days saving the client default fees, legal fees and default interest at a far higher rate.

Holme Finance Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 15 years with complete authority on their lending.

HFBS prides itself on being very different, filling a niche in the market to complement existing providers of short term finance and completing the more straight forward application without the need for solicitor involvement. Simpler, quicker, cheaper.