Arc & Co. steps in when lender pulls the plug

By Bridging Loan Directory 13th February 2019

Mayfair-based specialist finance advisor, Arc & Co. with offices in Oxfordshire stepped in when the lender pulled the plug at the very last minute.

A story that is becoming all too familiar – client approaches their bank, with whom they have been with for years, to increase their mortgage or take out a new mortgage to buy a bigger house. The bank initially responds positively with a desire to help their long-term customer. But, after a couple of meetings with the customer, numerous documentation requests and missed calls from their client, the client is left in the dark as to the progress of their application. After several weeks the answer comes back that “unfortunately the bank will not be supporting your request at this time”. The client can be left bereft, embarrassed and, worse still, under the impression that because their long-term bank will not or cannot help, no one can.

The fact is that, more often than not, by handing over the reins to a trusted advisor, your situation can result with a more desirable borrowing procured and at a better rate than the encumbered bank. A knowledgeable broker, who has access to a wide range of lenders from the high street to the niche, can be better placed to discuss a client’s circumstances and present their client in the right way to the most suitable lender.

Case in point for Jamie Rigby, pictured, Financial Consultant at Arc & Co., who was contacted by a City professional who had been renovating their substantial London property. The renovation works had been funded by a well-respected challenger bank, but due to a small cost overrun toward the end of the works the client was left red-cheeked when the bank would not support the additional costs. In addition to this, the client was looking to purchase an investment property for their daughter, but the bank would not entertain any further funding. The decision to not help further came only after nine weeks of “still considering the request”, valuations (at the client’s expense) and several meetings, despite strong early indications of a willingness to help.

The delayed decision not to lend further monies meant that the client had just four weeks to arrange a suitable alternative before the builders ‘downed-tools’, and the vendors of the investment property were also wondering why their purchaser was appearing to drag their heels.

With no time to waste, Jamie managed to take the reins and arranged a like-for-like mortgage on the London property, but at better terms than the existing mortgage, saving the client over 1% per annum in interest and providing the client with a 5-year fixed rate of 1.99% with the ability to offset up to 100% of the balance at any time.

Jamie also arranged a BTL mortgage on their holiday home in the Cotswolds, allowing the client sufficient funds to complete the works and complete the purchase of the investment property for their daughter. Both facilities were arranged within the four-week timeframe.

The client commented:

“Jamie’s great efforts meant that we completed both mortgages in time, which we did not think was possible. We are delighted with the solutions that he put in place”.