Are you an accountant or solicitor? Does one of your clients need a bridging loan to purchase a new property? We have the private banking contacts to provide a tailored solution. As a professional service provider, you expect the utmost professionalism from your business partners. And you get that from Largemortgageloans.com. Our team of brokers is qualified at advanced CeMAP level with many years of experience. We can help place large mortgage loans, improve your client service, earn you valuable revenue and grow your business as a result.
We partner with several leading accountancy firms, one of whom had clients who needed to arrange a bridging loan of £2.5million, borrowing £700,000 more than the purchase price of the new property (£1.8million) to enable significant works to be carried out. Whilst the property was habitable at the time of purchase, the nature of the works would result in the property being uninhabitable so they would need to stay in their current property for the duration of the works. The clients’ current main residence had no mortgage on it and with a recent valuation of £4million, there was no shortage of bridging lenders to choose from. However the solution they had been offered included a 2% arrangement fee and 0.85% per month interest costs. Based on borrowing £2.5million this would have resulted in fees of £50,000 and interest rolling up at the rate of £21,250 per month.
Having reviewed the clients’ three years accounts, assets, liabilities and track record, it became clear that the applicants had significant property experience and that their business banking might be attractive to a lender. Largemortgageloans.com wrote a credit proposal which was sent to selected private banks who we felt would wish to lend due to the low overall loan to value ratio of 43% and the high quality client profile.
We arranged the full facility of £2.5million at a variable rate of 3.2% and with total lender fees of 1.5% on a two year facility. This solution saved the client over £14,500 per month in interest costs and £12,500 in fees. The previous valuations were retyped to save £4,000 and reduce the timescales. The offer was issued within 8 days of first contact.
|Loan amount:||£2.5 million (43% LTV on overall property valuation of £5.8 million)|
|Rate:||3.20% variable rate|
|APR:||Overall cost for comparison 5.0% APR representative variable|
|Loan purpose:||Bridging loan, including capital for development purposes|
|Lender’s arrangement fee:||1.5% of loan amount|
|Early repayment charges:||None|
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
The overall cost for comparison 5.0% APR representative variable based on 2 years at 3.20%, with lender’s arrangement fees of 1.5% x £2.5million (£37,500) and legal and valuation fees of £10,000. The actual rate available will depend on your circumstances. Ask for a personalised illustration.
Largemortgageloans.com is a trading name of Largemortgageloans.com Ltd. A fee of up to 1% of the mortgage amount is payable, of this 25% is payable on application and the remainder on completion, e.g. on a mortgage of £100,000 the fee would be £1,000 of which £250 would be payable on application. The precise amount will depend on your circumstances.
Contact us for advice or further information.