When an interest only mortgage came to the end with no funds to pay the final sum it looked like an important family asset was about to be repossessed, until Holme Finance Bridging Solutions approved a loan to recover the situation.
The client had mistakenly ignored the due date for final repayment and latterly failed to secure refinance due to poor credit. Now, with the realization that a sale was the obvious exit, the mortgagor had lost patience and was due to repossess.
HFBS recognized that the client, albeit belatedly, had acknowledged the need for a sale and the best outcome for them was to secure this themselves with a sensible marketing period (avoiding significant legal costs and the potential for a sale to be completed by the mortgagor at a lesser price). Approached for the mortgage redemption sum of £216.900, HFBS were able to complete very quickly providing the client with the best outcome.
Ian Broadbent, director at HFBS says: “The property was valued at £385,000 so the LTV looked good enough to allow for a satisfactory end to what was a very stressful situation for the client.
“We always look for the best outcome for clients. It was clear that allowing their property to go into possession with the monthly accrual of costs and fees wasn’t going to help but only compound the situation. Properties in possession typically don’t achieve the value required. This way we’re confident of a successful sale at the market rate.”
HFBS provided the loan over a 12 month term and a rate of 0.95% per month to be paid once the property is successfully sold.
With an average completion taking less than seven days from enquiry to money in the bank, no solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, HFBS really mean business.