The property was a multi-let unit with local covenants and short leases.

The reason for the rush was that he wanted to attend a property auction the day after he got back from holiday, and needed to know with certainty that he could bid with confidence. His own bank had already let him down and said they couldn’t provide a mortgage, so we suggested a bridging loan.

We approached a specialist commercial bridging lender who provided terms within 24 hours at a competitive rate, below 1% per month, with a 2% arrangement fee.

The valuation was carried out before the client went on holiday, and the report was back with the lender in good time, so formal terms were issued well before the auction. As such, the client was able to attend the auction safe in the knowledge that he had funds pre-approved.

Thankfully he was successful on the day and purchased another vacant commercial property to add to his portfolio. 

His pre-approved loan enabled him to complete the purchase within the tight auction timescales and without incurring any penalties.

We have subsequently been working with the client to refinance the bridging loan, and have secured a 15-year term loan for the required loan amount with a high street bank on competitive terms to complete circa three months following purchase.  

Attributed to John Waddicker, Director at Positive Commercial Finance