United Trust Bank (UTB) Bridging has completed a £345,000 second charge regulated bridging loan enabling their customer to purchase and improve a holiday let investment property.
The customers needed the loan to secure the purchase of the £312,000 property, which is situated in a sought-after south-west coastal town, and have additional funds to carry out various improvement works. Once complete, the customers intend to use the property for holiday lets.
Having discussed various options with their broker, taking account of the condition of the property and the speed of purchase required, the customers decided to secure the bridging finance on their own main residence. The customers’ home was valued at £1.6m and they had plenty of equity in the property for a second charge bridge which could proceed quickly.
UTB was happy with the possible exits suggested which included refinancing the BTL property or remortgaging the first charge on their main residence.
Craig Taylor, Key Account Manager – Bridging, United Trust Bank, commented: “Homeowners often have substantial equity in their main residences, even if they have first charge mortgages already secured on them. Releasing this equity with a second charge regulated bridging loan can provide customers with a quick and straightforward solution to raising money quickly for a variety of purposes, including purchasing properties not in a suitable condition to use as security for a bridging loan or mortgage.
“Although not all lenders are happy to offer second charge bridging loans, regulated or unregulated, at UTB we have an experienced team of underwriters and credit professionals committed to helping brokers and their customers secure the right solution for their needs and to seize opportunities when they arise.”