At Enness, we value building relationships with both lenders and clients and we strive to provide a service clients are keen to return for. I recently worked on a case for an existing Enness customer who needed to refinance a bridging loan, and was pleased to be able to provide them with a quick tailored solution.
The client, an experienced property developer, had been presented with a new opportunity requiring funds at short notice to secure the deal. These funds were raised against a property in South East London which was valued at £1.6million, with a rather expensive short term bridging finance.
The first hurdle was to find a lender that was comfortable with refinancing the bridging loan. There are many lenders that can consider this, however the purpose for the original loan was deemed as ‘business use’ which not all lenders are entirely comfortable with. My clients were also looking to refinance as soon as possible, which ruled out lenders who required the existing loan to have run for six months.
The client required the full amount to be redeemed, which at first glance proved difficult as the rental income was not high enough to meet the stress tests of almost all the lenders that could consider the initial situation.
However, I was able to use our extensive network of lenders to source a specialist who was not only happy to refinance the bridge, regardless of it having only been in place for a month, but also consider more favourable stress testing if a 5-year fixed product was taken.
I was able to secure a competitive 5-year fixed rate of 3.95%. The lender was also able to turn around the funds in one month, saving my client interest in the process. My clients were very satisfied with this result, and I look forward to working with them again in the future.