Quick £2.25m mortgage for property developer

CONTACT STEVE

THE SCENARIO

I recently secured a mortgage for a property developer client on his latest property, based in North London and worth £4 million. My client originally planned to sell the property, yet the sale had unfortunately fallen through at the last minute leaving him with a decision on whether to keep hold of it instead.

Because of this, my client came to Enness in desperate need of a quick finance solution. As the sale had fallen through, he now needed to come off of the development finance already in place as soon as possible. Luckily, we at Enness were able to lend a helping hand!

Overall, this client was in need of a quick finance solution to come off of the development bridging finance on a buy to let, yet he also wanted a flexible product that would come with no early repayment charges. This presented a few challenges, largely due to the speed required yet also because his previous years’ business figures were a loss. Even though this is rather common for property developers (due to the nature of their business), this made securing the loan trickier, especially as he needed a very quick turnaround so the existing finance could be repaid. It can be tricky to come across this type of deal so quickly, especially one that does not compromise with a higher rate or additional fees.

OUR SOLUTION

Despite this, I took on the challenge and was able to approach a specialist buy to let building society. As a longstanding contact of Enness, they were happy to negotiate the appropriate deal and ultimately secure the required loan amount of £2.25 million, without any early repayment charges. This lender was also willing to initially draw down, even though there were no tenants in place (as my client had only just finished building the property).

I was able to secure a mortgage at a discounted variable rate of 4.19% with no early repayment charges. On top of that, we managed to arrange this all within just 4 weeks.