Loan: Hybrid bridging / term loan refinance
When taking on a development project you can never guarantee what the market will be like once the project is finished, which can sometimes mean having to change course. This case highlights that very scenario and how Vantage Finance, master broker of specialist finance, used their expertise to negotiate a positive outcome for the client.
An experienced property developer specialising in building luxury houses and apartments.
Our client had built a number of high-end flats, on land that was granted planning permission before the market slowed for this type of asset.
Their current bridging facility was about to expire, and as the flats were not yet bringing in any rental income, lenders were reluctant to offer long term finance. The customer had taken the decision to hold on to the flats and rent them out waiting for the market to improve.
We agreed with the lender to put the client onto a short-term loan initially so that they could refinance from their existing lender. We negotiated that once a number of the properties were let, we would switch the client to a longer term buy-to-let mortgage.
The chosen lender has limited fees when refinancing onto one of their long-term loans, meaning it brought no additional cost to the client.
The interest rate on the short term loan matched the term loan which was also a discount on standard pricing due to quality of the customer and asset, but the advantage of the short term initial structure was that interest was rolled up, meaning no interest to service for 12 months.
This allowed time for them to rent out enough units to cover the payment by 100%. We then refinanced them on to a long-term buy-to-let product.
Vantage Finance has a wealth of experience working on high-value cases, and possess strong relationships with fast-acting lenders. Our clients receive a first-class personal service, which is why they return to us. Our five-star Feefo rating demonstrates the level of customer satisfaction we generate.
Through our strong relationship with the new lender and our excellent negotiation skills we were quickly able to get the client a hybrid re-bridge, to pay off his existing bridge which was due to expire, and then followed this by providing them a more manageable and affordable longer-term buy-to-let product.
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