Market Financial Solutions has completed a Bridge Fusion loan to support the purchase of a residential asset in the face of tight deadlines, enabling the borrower to complete their acquisition quickly amidst pressure from a vendor.
The borrower was expanding their portfolio with a prime residential property and needed rapid funding as a tight deadline approached. However, the property was currently vacant and without income, which threatened to slow down the deal, and risked derailing the refinancing exit strategy.
Market Financial Solutions’ underwriting team moved quickly to find a solution. Working closely with the borrower, the underwriter ascertained that tenants were lined up to move into the property upon completion. Furthermore, the borrower was already in talks with several institutions to move onto long-term finance for the exit strategy, which allowed the deal to progress to the final stages.
For the borrower’s circumstances, it was determined that a longer term would be appropriate to provide them with additional flexibility for any potential complications. As such, a Bridge Fusion loan was utilised, providing a 24-month term (Market Financial Solutions’ standard bridging loans are available up to 18 months).
To support the borrower with their affordability, the underwriter utilised rolled-up interest for the opening months of the deal. With these measures put in place, Market Financial Solutions was able to deliver funding of £3,000,000, with a 75% loan-to-value (LTV) ratio.
Paresh Raja, CEO of Market Financial Solutions, said: “This case is a strong example of how our Bridge Fusion product gives borrowers the flexibility they need when timing and structure are critical. With tight deadlines and a vacant property, it was essential to provide a solution that not only enabled a swift completion, but also protected the borrower’s longer-term refinance strategy.
“By offering an extended loan term and using affordability tools such as rolled-up interest in the early months, we were able to give the borrower valuable additional time while they secured their tenants and progressed discussions with longer-term finance providers. It’s this ability to tailor both term and structure that allows us to support borrowers through transitional periods, without compromising on speed.”
