Loan: Commercial mortgage
Rate: 5.15% + Libor with a 1.5% fee
It’s all in the details. Sometimes a deal can look like a no-brainer at first glance and it turns out to be something you wouldn’t touch with a barge pole. By the same token, some deals look unworkable but actually, when you dig a little deeper, they make perfect sense.
Vantage Finance was recently approached to raise £149,850 against a commercial property owned to allow him to invest in another property in the area around Oxford.
The problems were several: He is self-employed as a taxi driver. He has an outstanding loan on his cab for £227 every month, on top of that, he has a large amount of credit outstanding which made it difficult to show surplus income to cover rental voids.
Vantage managed to secure a commercial mortgage for the client with a lender that looked at the application as a whole and see that refinancing would benefit the client.
Lucy Hodge, managing director of Vantage Finance, said: ‘This type of scenario is where common sense should prevail but often doesn’t because lenders don’t have the appetite to dig into the detail.
That’s where our relationship with specialist lenders comes into its own: they trust our expertise and experience and they know we wouldn’t put a deal in front of them that didn’t make sense. As a result, we got the loan the client was looking for approved because we showed that by refinancing, he was actually £1,754 a month better off having consolidated his debts.”