The Client

The client, an experienced landlord with a small property portfolio, was in need of bridging finance but lacked prior experience in this area.

The Challenge

The challenge was to secure full funding via a 100% Bridging Loan for the property purchase, including the deposit, as the client had liquid funds tied up in other projects and investments.

The property in question was a ground floor, one-bedroom purpose-built flat that had previously been used as a buy-to-let property. Extensive refurbishment was required, and our client also intended to add an additional bedroom to increase the rental income.

Our client had already consulted another bridging finance broker who provided a quick solution, which raised concerns about the depth of research and lender underwriting that had been conducted. Furthermore, the broker was charging excessive fees for their services, leading our client to seek an alternative solution.

The Process

A couple of hours were spent talking with the client about his personal background, financial position and plans for the property to be purchased.

We then shared the client’s needs and requirements with five bridging finance lenders, resulting in three lenders providing bridging loan terms.

To facilitate an informed decision-making process, we presented these terms in a comparison table, allowing our client to scrutinise and raise any additional questions.

We thoroughly explored the advantages and disadvantages of each proposition, and our client gave us the go-ahead to proceed with a full application.

To ensure our client had an exit strategy from the bridging facility, we obtained an agreement in principle from a buy-to-let lender. This agreement provided our client with reassurance that a remortgage option would be available once the property refurbishments were completed.

The Result

Within 48 hours of our initial consultation with the client, we had obtained a fully underwritten bridging finance offer that covered 100% of the funding required.

The lender was satisfied with this arrangement as our client had an unencumbered buy-to-let property, which served as collateral for the loan. And was also comfortable with the clients ability to complete refurbishments on time and to cost.

It took 12 weeks to complete the process, but this delay was not due to any shortcomings of the lender, our client, or ourselves. Rather, it was caused by the vendor’s decision to push back the original completion date.

Summary

We successfully provided our client with a comprehensive bridging finance solution tailored to their specific needs. Through effective communication, research, and tailored advice, we ensured that our client felt confident and well-informed throughout the entire process.

You can read exactly what the client has to say themselves by taking a look at their Google Review of Pyxis Capital here.

If you would like to speak to us about your bridging finance needs, or feel that you could benefit from a Bridging Loan, then do not hesitate to contact us. Alternatively, complete our quick and easy Bridging Loan Calculator to see exactly how a Bridging Loan would look for you and your circumstances.