Case study: Commercial mortgage to repay a bridging loan
A customer approached his Mortgage Broker for a commercial mortgage to repay a bridging loan which was currently secured across several of his residential rental properties. The Mortgage Broker specialised in arranging buy to let loans and so referred the case to Ingard’s Specialist Team, ensuring he retained full ownership of the client and would still receive a 50% split of the broker fee and procuration fee.
The customer wanted to raise £600,000 to repay the bridging loan, securing the new commercial mortgage against an unencumbered property the customer owned and run a children’s day nursery from.
Barclays was happy to provide funding but a recent report from Ofsted rated the nursery as “Poor” resulting in them withdrawing their interest. Ingard’s Specialist Team explored other commercial lenders, but none were able to assist due to the recent Ofsted review.
The customer appealed the Ofsted report; however, the appeal was not upheld. Several months later, there was a new Ofsted report carried out and this time the children’s day nursery was rated as ‘Good’. The customer contacted their Mortgage Broker to see if they could now successfully raise a commercial mortgage to repay the bridging loan.
The Mortgage Broker returned to Ingard’s Specialist Team and they explored the best rates available again to ensure that Barclays still offered the most competitive deal. As it happened, Barclays still was the best option for the customer so Ingard worked with the customer and the lender to process the case. The lender had some additional demands which delayed the case a little longer as Guarantees were required by all Company Directors.
Once the Guarantees had been finalised the mortgage completed promptly, and the customer was able to clear the Bridging Loan. Ingard’s Specialist Team had kept the introducing Mortgage Broker regularly updated on each key milestone and was delighted to pay them their share of the commission, a handsome fee of £5,525.
Here to Help
For help arranging a long-term commercial mortgage to repay a bridging loan, call our Specialist Broker Team on 01702 538 800 or arrange a call back.
- Did you know an energy efficient property can not only help the environment & save you money on your energy bills… https://t.co/TDzZl1BHbb 11 hours ago
- Are you Self-employed, have complex income or hadnrecent changes to your circumstances? Don’t suffer in silence ass… https://t.co/UmnC09w2ky 3 months ago
- UK mortgage values show increase in 2021 https://t.co/meNCcgB30M 4 months ago