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.
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.