Our products are structured to give your clients the flexibility they need. Here’s an example of how:

The client:

The clients were two married investors, a British national and a foreign national, with properties in the UK, Japan and Malaysia. The clients were looking to purchase a three-bed terraced house valued at £300,000 and convert it into a six-bed HMO.

The situation:

The clients intended to use their own funds for the HMO conversion, as well as completing a loft conversion, a refit and refurbishment – all of which fall under permitted development. The planned works would significantly increase the value of the property and so the clients were looking for a short-term loan where they only need to contribute 20% towards the purchase, freeing up funds to complete the works, moving on to a term loan when the refurbishments were completed.

The solution:

Using our Bridge to Let loan, we provided an 80% gross day one bridging loan of £240,000 at 0.67% pcm on an interest roll up basis. The client had 9 months of interest roll up available, without any payments, to allow for any over runs and to allow time for letting or sale.

The works were completed quickly and after 3 months, the client opted to switch without an ERC to TermTen, our 10 year Buy to Let loan, fixed at 5.29% for the first 5 years. The gross TermTen loan of £318,000 was for 75% LTV of the uplifted value of £425,000. This enabled the client to replenish the cash they spent on the refurbishment, and facilitate their next purchase.


Have a case to discuss?

 

Give us a call or contact your BDM today to see how we can help you.

 

Mortgages
This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Your clients’ property may be repossessed if they do not keep up repayments on a mortgage or any other debt secured on it. Loans are subject to status, terms and conditions.

Daven Trust means Daven Trust Capital plc, a company incorporated in England and Wales with company number 07852281 and registered office at 32 Suderlane Street, London, EC9B 9HG. Daven Trust Capital plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under reference number 678976. Buy to Let is not regulated by the Financial Conduct Authority or the Prudential Regulation Authority.

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This website is for authorised intermediaries only. This information has not been approved for use with customers and is not intended for public or customer use. Please confirm that you are an intermediary before accessing information on this website.

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