Loan.co.uk and Together complete £1.1m adverse credit bridging loan

By Bridging Loan Directory 8th July 2022

Loan.co.uk has helped a landlord extend her property portfolio despite adverse credit, with a £1.1m complex bridging loan.

The client, who had unsecured lending arrears, needed to raise 100 per cent of the purchase price, including funding for works to the property, but was struggling to find a solution.

She turned to Loan.co.uk for assistance.

CEO Paul McGerrigan said:

“This was a complicated situation, the client had some small unsecured arrears which had damaged her credit rating, and on top of that, wanted to purchase a £1.1m property, including renovations, with no deposit to speak of.

Our experts looked through the existing portfolio and were able to use three of her four buy-to-let properties and the purchase property to use as security.

They took the case to the commercial underwriting team at Together as it has exceptional experience and can look deeper into cases and analyse all merits carefully.”

He explained that, as an added advantage only a full valuation was necessary on the purchase property, with AVM’s (Automated Valuation Models) being acceptable for the other three. This saved the client valuation fees and sped up the process considerably.

McGerrigan added:

“Other issues with a first charge lender for one of the properties cropped up part-way through the process, however our expert team was able to liaise with them and iron out the issues.

It was a complex case with multiple properties being used for the purchase, however we managed to navigate it and with our in-depth lender knowledge and experience, as well as our strong relationships with lenders, we were able to get this over the line.

It is particularly satisfying to see highly complex cases like this come to a great conclusion, it is testimony to the concerted effort we have made on developing our bridging capability this year, and our excellent people.

It is a combination of elements like this which is seeing our business grow considerably.”

The client was able to take out a 12-month bridging loan at 0.8 per cent, with no ERC or exit fees, for the North London property – a large four-bedroom residential house in a sought-after location near schools and a supermarket.

Her intended exit strategy is a refinance of the portfolio once renovations are complete on the new acquisition.

Sundeep Patel, director of sales at Together, said:

“On the face of it this would seem an impossible task, to secure this £1.1m property with such a complex funding make-up as well as adverse credit.

However, with Loan.co.uk’s depth of experience and problem-solving ability, and Together’s exceptional capability in the bridging market – backed by the depth of human underwriting experience – we were able to get this deal done and delight yet another client.”