Tag Archives: re-bridge

Holme Finance Bridging Solutions (HFBS) turn a bridging loan for £59,545 around in three days.

THREE-DAY TURNAROUND SAVES DEFAULT PENALTY

Holme Finance Bridging Solutions (HFBS) turn a bridging loan for £59,545 around in three days to save a property developer incurring a £7,000 default fee from existing lender.Holme Finance Bridging Solutions (HFBS) turn a bridging loan for £59,545 around in three days.

HFBS were approached with the irregular request to re-bridge an existing bridging loan. With funds already borrowed to complete an investment property renovation and a sale agreed all was well until the buyer backed out.

Ian Broadbent, director at Holme Finance Bridging Solutions says: “Usually we would be incredibly cautious when looking at re-bridging a bridge that has failed, but it was clear to see the developer was simply in an unfortunate situation. His buyer had backed out leaving him three days away from his loan deadline with a fee of £7,000 added should he fail to settle.”

With another buyer lined up the developer was confident of a sale but knew it would be impossible to complete within three days. The client had done all the right things by keeping in touch with his existing lender, however weighing up the overall cost he realised that taking an account with HFBS was considerably better for him than defaulting or extending with his existing lender.

“The completed development was top quality and had been marketed aggressively to line up a back-up sale immediately. As there was another sale agreed we obtained confirmation of the sale price from the solicitor, had the sales agent particulars and comparables all stacked up, which left us happy to fund £59,545 as a second charge of £196,527 with a sale agreed at £463,000.”

The deadline for the client’s existing lender receiving funds was 4pm on Friday the 1st of June. HFBS issued documents to the client on Wednesday 30th of May. Visited the development on Thursday the 31st of May and paid out on Friday the 1st of June in time for the 4pm default deadline, all without the need for a full valuation.

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.

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.