Richard Lawton, Head of Short Term Lending
If you’ve ever dealt with a bridging finance case, you’ll know how important it can be to find the right product, submit an application and get it completed as quickly as possible.
These flexible loans can be used for a wide range of purposes, by customers looking to complete on the purchase of a new home before selling their current one, for example, or by businesses looking to raise capital, but they all share one thing in common – speed is usually of the essence.
Here at Precise Mortgages, we pride ourselves on providing short-term borrowing solutions to customers who need to facilitate a deal quickly, efficiently and with as little fuss as possible.
To show you how quick it can be, let me give you an example of a case we’ve recently completed which we progressed from application to completion in just three days.
We were contacted by a broker representing a customer who needed to capital raise £180,000 against an existing residential property valued at £622,500 to enable them to buy a holiday home in Windermere, in the Lake District National Park.
The customer intended to use the holiday home as their main residence, but when the national park is closed in the off season, they would live with their daughter and son-in-law at their home in Preston. They required the bridging loan to purchase the new property as they were yet to secure the sale of their existing residence. The customer had surplus equity should they decide to buy a new main residence in future.
We received the Decision in Principle on Tuesday 1st September, followed by the full application on Thursday 3rd September. The returned desktop valuation on the customer’s existing residence passed our criteria and our solicitor satisfied all the legal work quickly, including one of the occupiers at the existing residence seeking independent legal advice as part of signing a Deed of Consent. This enabled us to meet our underwriting requirements within the next 24 hours and issue an offer by close of business on Friday 4th September.
I should point out this is an example when all the pieces fell nicely into place – the case was a low LTV, the customer passed all of our criteria without a hitch and the solicitor was able to complete the legals quickly. Not all cases will go through as smoothly as this one did, but it’s a good illustration of how quickly a case can be processed. I should also mention that customers should always have a suitable and realistic exit strategy in place for when and how the loan will be redeemed before considering bridging finance.
To find out more about how we can help, speak with a member of our Sales Team or call our dedicated support service on 0800 116 4385.