An experienced property investor with a portfolio of 18 properties wanted to borrow £2m to invest in a development project.
His overall loan to value was 50% and spread across various lenders on some very good buy-to-let mortgage rates.
Even though he had an impressive portfolio of properties, the more traditional lenders were unwilling to offer the funds as the client had a relatively low income.
Our lender was able to offer the £2m required to invest in the development project and there were no monthly repayments.
On completion the development project was worth considerably more than the amount borrowed and the lender was paid back with the initial loan plus all rolled-up interest (compounded monthly) calculated using the applicable fixed rate.
|Portfolio value (18 properties):||£16,750,000|
|Loan amount (12% of the portfolio value):||£2,000,000|
|Loan term:||Two years|
|Early Repayment Charge||Two years - 5% of the loan|
|Repay initial loan:||£2,000,000|
|Rolled up interest:||£317,511 - Interest is calculated daily and compounded monthly.|
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