We were approached by a married couple from Wales who are experienced landlords / property developers, although they also run a successful water irrigation business.
Between them they jointly own a portfolio of more than 10 properties, all of which are located close to their home.
They were looking for bridging finance to assist with the purchase and renovation of a former council house, again, located close to their home.
Knowing the area well, they felt that when the property was finished, it would sell for around £120k, making them a good profit.
We approached a lender that works with experienced developers and is currently offering extremely competitive rates.
The lender was happy to offer the following deal, which progressed swiftly without a hitch:
Property value: £85,000
Loan amount: £59,500
Rate: 0.75% pcm
Term: 6 months interest only
Lender facility fee: 2% (£1,190)
Lender exit fee: 2% (£1,190)
Monthly payment: £442 pcm
Consultant: Gavin Elley