£2m second charge capital raise has a last minute twist

Our borrowers had amassed a significant residential investment property portfolio in London with low gearing. They were now looking to release equity for further acquisitions and to top up a cash injection they were putting into a development project, but without having to repay their cost effective first charge mortgages.

United Trust Bank agreed to provide a £2m facility secured by way of 2nd charges against 105 properties.

To keep costs down for the customer the Bank agreed to have valuations on a sample of properties across the portfolio and desk top valuations on the remainder. At the eleventh hour, it became apparent that the development facility would not be available to draw down in time in order to finance the acquisition of the development property and so the borrowers requested that the entire bridging facility be used to facilitate the purchase.

The Bank agreed to the request thus allowing the acquisition to proceed and preventing the borrowers losing a substantial deposit.

Loan of £2m – 64% LTV