HFBS bridges the finance gap by saving property purchase with last-minute £110,000 Loan.
In a dramatic turn of events, HFBS came to the rescue of a property investor who found themselves in a precarious situation after committing to buy a property at auction under their limited company.
Despite having provisionally approved finance, the client faced unexpected hurdles that threatened to derail the purchase due to tight auction deadlines. The crisis unfolded when, after three weeks of attempting to finalise the deals, the client realised that the transaction would not be completed in time, risking the loss of the property and incurring substantial financial penalties.
With the clock ticking and just five days remaining to the deadline, the client sought the expertise of a broker who immediately turned to HFBS, known for their agility and reliability in such high-pressure situations.
Dan Yendall-Collings, Senior Underwriter comments: “Understanding the urgency, we sprang into action, proposing a solution to raise the required £110,000. Leveraging the client’s home equity, we were able to arrange a second charge on the property, enabling the investor to channel the funds into their limited company and secure the auction properties.”
The process, initiated on Monday with a looming Friday deadline, saw HFBS conduct a swift property valuation and dispatch an offer pack on the very first day. By Tuesday, HFBS representatives were on-site, finalising paperwork with the client. Upon receiving the valuation report and confirming the balance of the first mortgage on Thursday, HFBS promptly released the funds.
This rapid response allowed the client to inject the necessary capital into their limited company, successfully completing the property acquisition within the auction’s stringent timeframe. The loan, offered at a competitive rate of 1.15% over 12 months, has provided the client with a crucial lifeline, enabling them to navigate through this financial bottleneck.
The client now looks forward to refinancing the properties in the coming months, aiming to settle the director’s loan and repay HFBS, thus concluding a remarkable journey from potential disaster to successful acquisition. This case underscores HFBS’s commitment to providing flexible, timely financial solutions, reinforcing their position as a trusted partner in the bridging loan sector.