Holme Finance Bridging Solutions bridging loan saves auction purchase

By Bridging Loan Directory 12th October 2022

A postal strike and a mortgage provider pulling their deal didn’t stop an entrepreneurial property developer moving ahead and completing on a property bought at auction.

Thanks to Holme Finance Bridging Solutions (HFBS) an auction deadline that looked like it wouldn’t be met due to a BTL mortgage provider withdrawing their product at the last minute was back on track for completion.

HFBS were approached by a broker to help a client who was contractually obliged to complete within 7 days on the purchase price of £68,000 knowing they had no way of starting and securing a new mortgage offer in time.

Dan Yendall-Collings, Senior Underwriter at HFBS says:

“For this developer to get so far in the mortgage process only for it to be taken away was a devastating blow.

The broker approached us knowing there was limited time to turn it around, but we knew we could move quickly to meet the deadline.

We agreed the deal using a drive-by valuation and issued our offer pack on a Friday.

Unfortunately, the Royal Mail strike meant the pack wasn’t received until Monday but thankfully we were able to visit on Tuesday to finalise and witness the signing of the legal charge.

After that it all came together really quickly enabling us to release the funds on Thursday, a day ahead of the scheduled auction completion.”

It took HFBS five working days from receiving the application to the £68,000 pay out.

They agreed the loan over 12 months at an interest rate of 1.4%pm with the planned sale of the development property securing repayment of the loan.