Bridging Finance at 75% LTV with 0.75% Arrangement Fee

Deal Structure

75% LTV

£819k Gross Facility amount

0.75% Arrangement Fee

Interest at 0.9% pcm, serviced monthly.

No Exit Fees.

No Application Fees, Admin Fees or additional Broker Fees.

12 months term

Deal Summary

Our client had utilised both Bridging and Development Finance several times over the years, and was keen to secure funding for his next purchase of a “tired” 4 bed detached property which he intended to convert to a 6 bed HMO.

On this occasion, we were tasked to provide options with very simple fee structures (in addition to the usual requirement of cheapest rate at the highest LTV!). The client was very keen to use a lender who wasn’t, as he put it, “fee heavy”. Whilst he was familiar with & expected to pay an Arrangement Fee, he had noticed various additional lender fees appearing over time which he made it quite clear to us that he would prefer to avoid.

From amongst our panel, we approached a couple of lenders whom we knew had very simple fee structures, and which would therefore be appropriate for our client.

The loan set-up costs included a £1,440 (inc VAT) Valuation Fee, £2,400 legal fees (inc VAT) and a 0.75% Arrangement Fee which the client was comfortable with.

The client opted to pay interest monthly from his investment portfolio, thus keeping the borrowing requirement to an absolute minimum.

Contact  John Waddicker

07974 703375

[email protected]