Signature’s speed helps secure discount for client

By Bridging Loan Directory 28th November 2017

In the competitive London housing market, there are not only good opportunities to expand property portfolios, but discounts available for those that can react quickly and organise their finances effectively.

This was the situation that greeted the Middleburgh brothers, clients introduced to Signature Private Finance by Amir Din of UK Mortgage Specialists in Coventry – providers of Specialist & Complex Mortgage solution for property Investors’.

Flats on the rise

The property in question, was a leasehold 2-bed flat in a purpose built 6-storey building of 24 flats, constructed in the 1950s. The flat was recently refurbished and is nicely situated in North London close to transport links ensuring a car is not necessary, although the flat comes with a garage.

All of which is important when it comes to valuing properties for the purpose of arranging bridging finance, which the client needed urgently to secure a significant discount off the £670k asking price.

The required loan amount of £500k was never going to be the problem for Signature, the need to complete within days is what created the pressure.

The client was well along in the process of arranging finance through the Bank of Cyprus, but towards the end of March, was offered a discount if the deal could be completed before the end of the financial year on April 6.

First contact with just days to go

Signature Private Finance, renowned for its speed of decision, thanks in part to taking responsibility of all aspects of the process in-house, from valuation to lending decisions, was first contacted by Amir Din just 6 working days before the deadline.

A decision within days, for a new client is quite extraordinary, according to Signature CEO, Tony Gilbertson, pictured:

“Typically, the process of providing bridging finance for any amount will take weeks rather than days, but when the figures exceed £500k with an LTV close to 75%, everything has to run perfectly to make funds available within days.

“There are few lenders with one in-house valuer, so having two really helps us shorten the time from first contact to drawdown, but in this case the original inspection was undertaken by Strettons, then readdressed to us to confirm it met our criteria.

“But when you have a good team and you all work hard to make the right lending decision for an experienced developer, it is possible, as we have just proved.

“The client is an experienced developer with a portfolio worth around £4m and a good exit route that would see the property quickly re-financed onto a buy-to-let mortgage through Foundation Home Loans.

“Despite the need for a fast turnaround, cases like this are relatively easy for Signature to lend on. We see the bigger picture and understand the decisions made by the client, so lending £500k for 6 months to help them expand their portfolio, makes a lot of sense for all concerned.

“It is immensely satisfying to receive an enquiry on March 27 and see the client drawdown the loan on April 4 – it proves we have good introducers like UK Mortgage Specialist and a good team that works hard to find ways to lend, not reasons to turn deals down.”