Our client, a portfolio landlord, came to us looking to refinance a property that was sitting on an expensive bridging loan. The priority was to get out of the bridge quickly and move onto a more competitive term product, while still pushing leverage and keeping cash flow in a good place.
They needed around £395,000 to redeem the existing facility, along with a lender who could move quickly and support the highest possible loan based on the valuation.
The Problem
We initially sourced terms with a challenger bank, but after the rental valuation came back lower than expected, the deal no longer worked within their criteria. This narrowed the lender options and with the bridging loan needing to be redeemed, timing was critical.
The Solution
We moved quickly and repositioned the deal with a different lender who was more comfortable with the revised rental figures and had a different view on ICR (interest coverage ratio).
A new valuation was carried out, and we were able to structure the loan in a way that still achieved a strong net position for the client. We stayed close to the process throughout, keeping the process moving between all parties to avoid delays and ensure a smooth transition from one lender to another.
The Results
- £374,000 net loan secured
- 4.79% fixed for 5 years
- 7% arrangement fee, structured to maximise the net loan and support cash flow
The client was able to move off the bridging facility and onto a longer term product that worked better for their overall portfolio.
If you’re working on a project and need help with down valuations, let’s talk.
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