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Fast Turnaround To Ease Business Cash Flow

When HFBS received a call from Loans Warehouse to assist their client with a bridging loan, they knew time was of the essence to help with a cash flow blockage.

The enquiry for funding was logged last thing on Monday with a deadline of Friday that week. The client required £80,000 to urgently plug a cash flow gap and pay suppliers to his business.

With the intention to pay suppliers with proceeds from a property sale, it was clear that although a sale had been agreed it would not go through quick enough to release the funds required.

HFBS stepped in assured they would be able to turn the deal round very quickly.

Ian Broadbent of HFBS commented: “This was a straight forward case. We were able to use the client’s property as security. No valuation was necessary as it was on the market for £305,000 with the client producing a memorandum of sale for £300,000.”

Being first charge on the property HFBS didn’t need to wait for confirmation of a mortgage balance. The paperwork was with the client Tuesday morning, signed and sealed the next day and paid out Thursday morning taking less than 24 hours of working hours to complete.

The loan was agreed with a 12 month term although expected to be repaid within the next 3 months pending property sale at a rate of 0.99%.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month with advances from just £10,000. 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 COMPLETES A THIRD CHARGE BUSINESS LOAN IN SIX WORKING DAYS

HFBS were recently approached by White Rose Finance on behalf of a client. The client had a pending second charge application which had been ongoing for several weeks when the proposed lender declined due to the inability to obtain the information they required from the first mortgagee.

On review it was clear that applying a little common sense not only could a deal be done but a third charge would be more cost effective for the client. The security was the clients own residence recently valued by the previous lenders valuer at £1,850,000. The client had a first mortgage balance of £416,000 and a current second of £100,000. The required loan was £100,000 to be used for an immediate cash injection to the business with the exit being the planned sale of the security. The loan was completed in six working days.

Ian Broadbent of HFBS commented “Whilst third charge lending is not particularly common it was clear on this occasion that it was both in the clients best interest and sound lending. A little flexibility was required in respect of the first mortgagees indebtedness however ‘common sense’ is where we shine. Working together with an excellent introducer this shows how a privately funded lender really can prove the best solution for a client.”

David Fine of White Rose Finance commented:  “This was a case we had struggled with for some time on consent issues but when HFBS took control they made all these problems disappear.

A phenomenally quick turnaround in the current lending environment from a thoroughly nice team as well!”

THE POWER OF TEAMWORK

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month with advances from just £10,000. 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 Help Client Save Thousands on Stamp Duty

When a plan to remortgage a holiday let to purchase a new property wasn’t going to complete in time to draw down funds for the 30th June stamp duty holiday deadline Holme Finance Bridging Solutions (HFBS) were approached to help.

The client required £200,000 to cover a slight shortfall enabling them to complete on a new property purchase, but they also needed to complete quickly in order to save tens of thousands in stamp duty. That’s when Sonny Gosai at Norton Finance approached HFBS.

Approached on Friday the 25th of June HFBS immediately issued their offer pack, the client confirmed receipt of Monday the 28th, HFBS visited the property on the 29th where arrangements to release the funds on Wednesday the 30th were made.

Dan Yendall-Collings, senior underwriter at HFBS says: “The client had an unencumbered large detached property worth £900,000, it clearly had significant value in line with the valuation report carried out for the mortgage lender, that coupled with being offered the first legal charge meant we were able to do the deal with no upfront fees as we didn’t require a new valuation. We were able to complete just within their time frame to save them a significant amount of money.”

Sonny Gosai at Norton Finance says: “With such a short space of time to beat the stamp duty deadline and save our clients thousands of pounds HFBS were the obvious choice.  Ian and Dan delivered when needed most.  With agreeing a valuation wasn’t required and in house legal team ensured that the clients received the desired outcome.  Speed really was key here and with Ian and his team that is exactly what was delivered”

HFBS issued a £200,000 bridging loan over a 12-month term at 0.95% per month in just four working days.

Dan continues: Working with the highly professional team at Norton Finance it was still a tight ask but because we have access to the funds and the flexibility to make our own decisions we were able to make it happen. We now have a very happy broker, and a VERY happy client.”

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month with advances from just £10,000. 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.

Loosing Property Auction Deposit Wasn’t An Option

Loosing Property Auction Deposit Wasn’t An Option

When a broker’s client agreed to purchase a property at auction via a standard BTL      mortgage, no one anticipated it wouldn’t be completed in time.

Unfortunately that’s exactly the problem they were faced with. After agreeing to buy the property, and securing with a deposit, the end of the 28 day period was close and still with no mortgage offer.

Loosing Property Auction Deposit Wasn’t An OptionHolme Finance Bridging Solutions were approached in the hope of rescuing the deal by approving and funding a 69,000 bridging loan quickly.

Dan Yendall-Collings, senior underwriter at HFBS says: “Thankfully the client had managed to secure a 10 day extension agreed with the auctioneers. We did require a valuation as the property was boarded up and appeared uninhabitable. Thankfully the cash valuation came in as we expected enabling us to release funds immediately. We did this all within the auctioneers extension with two days to spare!”

HFBS approved the funding immediately issuing an offer pack subject to valuation.

The deal was completed within seven working days and provided over a 12 month term at 1.1% per month.

Dan goes on to say: “The client was relieved and happy that they could acquire the investment property and progress with works as originally planned. The alternative would have been to walk away and lose the deposit that he paid on the day, which would have been tragic! We’re pleased to have been able to save the deal, and the investment, and very much looking forward to seeing the development completed.”

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month with advances from just £10,000. 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.

When an investment bond turned out to reserve heavy penalties for an early draw down an investor’s commitment to buy an auction property seemed to be in immediate jeopardy.  

HFBS FUNDING SECURES AUCTION INVESTMENT

When an investment bond turned out to reserve heavy penalties for an early draw down an investor’s commitment to buy an auction property seemed to be in immediate jeopardy.

When an investment bond turned out to reserve heavy penalties for an early draw down an investor’s commitment to buy an auction property seemed to be in immediate jeopardy.  With the client subject to a four-day deadline to complete the £100,000 payment of the property purchased at auction, HFBS had to act quickly to make the deal happen.

Dan Yendall-Collings, senior underwriter at HFBS says: “We were approached by a broker who knew we could provide funds within a week, thus ensuring the client could meet his property purchase commitment. We were asked to secure on an unencumbered investment property worth in the region of £650,000. A desktop valuation showed very clear evidence that the equity was more than sufficient for our £100,000, which allowed us to fund without a full valuation. This saved the client any upfront costs and enabled us to meet his tight deadline.”

HFBS issued documents, which were with the client on a Wednesday, followed by a visit from HFBS on the following Thursday to complete paperwork, with the completed documentation back on the Friday the necessary funds were released.

Completed within three days HFBS funded the £100,000 bridging loan over a 12 month term at 1.1% per month.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month with advances from just £10,000. 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.

INHERITANCE CONUNDRUM SOLVED BY HFBS

It isn’t everyday you inherit a house, but with the requirement to spend a lot of money on its derelict state the benefactor didn’t know where to turn when her bank refused to advance a loan for refurbishment works.

Photo by Melinda Gimpel
@melindagimpel

Thankfully a broker approached Holme Finance Bridging Solutions (HFBS) on the benefactor’s behalf requesting funding to enable the semi-derelict property to be transformed for a quick sale.

Dan Yendall-Collings, senior underwriter at HFBS says: “Our broker’s client had been let down by her bank who had refused to approve her application or compromise on her catch 22 situation. A mortgage was refused based on the fact she couldn’t provide evidence of meeting monthly payments and the property being in a semi-derelict state wasn’t habitable.”

The benefactor had no intention of becoming a landlord, and had no desire to live in the property but couldn’t afford to maintain the house, so after the refusal of a loan from her bank she looked for alternative funding.

Dan continues to say: “In consultation with local estate agents the client was advised that with a limited amount of investment it could achieve a sale price of £300,000, £100,000 above it’s current valuation of £200,000 as semi-derelict property. We did need a full valuation purely down to the current state of the property. But thankfully the valuation confirmed that spending just £50,000 would transform the property into a mortgageable asset where a quick sale would likely be achieved.

HFBS completed a full valuation, which confirmed the property in its current state to be worth £200,000. With a quote from the builders of £50,000, and confirmation of a four-week turnaround, HFBS were happy to advance £50,000 as a net loan for up to 12 months giving her time to complete the works and achieve a sale.

HFBS issued a £50,000 bridging loan over a 12-month term at 1.45% per month.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month with advances from just £10,000. 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.

At least we can enjoy a pint (when the pubs finally open) without added duty, cheers!

Whilst the Chancellor’s March budget has been received with generally positive commentary, and this is certainly the case for the property market, it nonetheless leaves a number of perfectly reasonable questions, let’s explore another view:

1) The extension of the current stamp duty concessions may delay the ‘cliff edge’ of the end of March but does it do anything other than defer the same issue? I would have preferred that a ‘cut off’ applied where a sale has been agreed with a reasonable period to allow those completions. This, of course, could have been the end of March or June but would ease the mad panic to complete in either event.

2) Is the Chancellor artificially fueling house prices only for a sharp (though shallow) drop in prices when this benefit is removed? Is that in order to fuel a feel good factor and encourage spending and, if so, will the lift be a short one and could the monies have been spent more wisely?

3) Is now the time to announce huge rises in Corporation Tax? Personally I accept this is inevitable but would have preferred a staged increase starting in year 1 and rising by 1% a year up to the proposed limit in 6 years.

4) Once upon a time the freezing of personal allowances would have been considered a ‘clever’ way of disguising real tax increases but with increased understanding by the populous we are not so easily fooled. Again is this the best time to be making it clear that taxes are going up and up?

It may be a contrarian view, however this is one occasion it may have been best to ‘kick the can down the road’. Growth, inflation, and to what extent people are going to utilise the vast savings accrued during the pandemic, have never been more uncertain. I for one would have preferred a neutral budget with the pain deferred that little bit longer. Then again I am not the Chancellor!

At least we can enjoy a pint (when the pubs finally open) without added duty on your favourite tipple, cheers! ‘

HELPING WITH PRE-CONTRACT DISCLOSURE

As a responsible lender with a heavily broker focused model we are continuously looking for ways we can provide assistance and support to our valued introducers. Therefore what can we change or provide you that will assist with pre-contract disclosure?

Business photo created by yanalya – www.freepik.com

Whilst we provide only unregulated ‘exempt’ agreements we are aware of recently introduced requirements for additional pre-contract disclosures imposed by the FCA.

Whilst we appreciate that introducers will have their own means of expressing this information it must, in the first instance, be clearly communicated to you by us.

 

We are reaching out to ask, how can we assist? What, if any, amendments can we make to our day 1 illustrations that will help you? What information do you require? Is there a style or wording preferred?

As you know, here at HFBS we hit the ground running, never ones to rest on our laurels, so in that spirit of working together to support one another we thought we’d ask; how we can make your job easier?

Your feedback would be both valuable and appreciated. Let us know how we can help. It’s always a pleasure.

Holme Finance Bridging Solutions (HFBS) fund a developer’s derelict ambition and it pays off with the property valued with a projected one hundred and forty five thousand pound profit.

DERELICT AMBITION GETS THE FUNDING

Holme Finance Bridging Solutions (HFBS) fund a developer’s derelict ambition and it pays off with the property valued with a projected one hundred and forty five thousand pound profit.

When a developer saw the potential in a derelict property bought for £80,000 cash, HFBS were approached to advance of £30,895 as a first charge so he could start the development. Three weeks after the developer was ready for the final tranche of £26,895 to complete the work.

Dan Yendall-Collings, senior underwriter at HFBS says: “This was a derelict property, you could see right through the second floor, the attic and see daylight! He was clearly a very experienced developer because after spending the first advance it was watertight, the damp proofing complete, a new roof, and new windows and doors. The joists and floors had been reinstated with a staircase and the outside had been rendered with the garden landscaped – surprisingly all within three weeks.

“Spending the first drawdown had increased the value, as confirmed by our valuer, to £140,000 and upon completion of the project the property is expected to be worth in the region of £200,000-225,000.

HFBS advanced the first bridging loan of £30,895 and then a second of £25,000, plus fees, to complete the internal fittings, kitchen and bathroom, central heating system and final decorations. A valuation was required due to the extreme nature of the property but from application to funds issued the first deal completed in 10 days and the second in just seven.

HFBS issued a £30,895 bridging loan as a first charge over a 12 month term at 1.75% per month plus £25,000 as a second charge over a 11 month term at 1.75% per month.

If you have a funding requirement you’d like us to look at get in touch here.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month with advances from just £10,000. 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.

Uninterrupted Service Whilst Demand Remains

Dear Introducer,

As you will be aware we have significant USP’s particularly in respect of our processes which allow for industry leading completion times. These rely heavily on our ability to be office based and we are therefore delighted to be included (as a short term lender) in the government’s exceptions to the ‘stay at home’ message.

We know how disruptive a third major lock down is likely to be and it is with this in mind we wish to assure our valued introducers that we WILL continue to provide a completely uninterrupted service whilst a demand remains.

We will NOT be amending criteria, nor will we be changing our process.

In short we at HFBS recognise we have the best supporting intermediaries in the industry and are committed to supporting you through this difficult time.

Feel free to get in touch on sales@hfbridging.co.uk

We look forward to receiving your enquiries.