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HFBS is pleased to announce the successful completion of a re-bridge financing solution for a client facing steep default rates on their existing short-term bridging loan.

A broker approached HFBS with a client who had initially taken out a short-term bridging loan at an interest rate of 2% per month, with a default rate of 5% per month. The loan was intended to support a business investment, with plans for increased business cash flow to repay the loan within 12 months. Unfortunately, the business plan did not materialise as expected, prompting the client to decide to sell the property used as collateral.

Under the terms of the existing loan, the impending default rate would more than double the monthly interest, putting the client in urgent need of refinancing. HFBS stepped in to offer a re-bridge loan of £150,000, sufficient to clear the outstanding balance and provide the client with a 12-month term to complete the property sale. The new loan was offered at a significantly reduced interest rate of 1.25%.

The re-bridge process required a property valuation, which was the only delay in an otherwise swift transaction. Despite this, HFBS managed to complete the refinancing within 9 working days, effectively avoiding the high default rates of the previous loan.

Key details of the deal include:

Loan Amount: £150,000
First Charge: £313,000
Property Valuation: £1,000,000
Client Credit History: Good
Completion Time: 9 working days
Interest Rate: 1.25%

HFBS’s ability to quickly assess the client’s situation and provide a feasible exit strategy was instrumental in achieving this positive outcome. The re-bridge not only alleviated the client’s immediate financial pressure but also provided them with the necessary time to sell the property at a favourable price.

“We are proud of our team’s efficiency and dedication in handling this case,” said Ian Broadbent, Managing Director at HFBS. “Our client’s needs always come first, and we strive to offer solutions that are both practical and beneficial. This successful re-bridge financing is a testament to our expertise in providing flexible financial solutions.”

This achievement underscores HFBS’s commitment to providing flexible and timely financial solutions tailored to the unique needs of our clients.

HFBS offer one the LOWEST second mortgage rates in the bridging finance market starting at just 0.95% month with advances from just £5,000. HFBS Bridging Solutions have been advancing short-term funds, via a limited panel of intermediaries, for over 40 years with complete authority on their lending. No solicitor involvement, no minimum valuation, and entirely privately funded, no bank mandates, no fixed rules, no default rates. HFBS really mean business.

Simpler, quicker, cheaper.