The customer had a large portfolio of residential properties and the bridging loan was secured across several of these. He needed £600,00 to repay the bridging loan with the intention of raising the funds against an unencumbered property which he run a children’s day nursery from.
We were able to quickly agree Terms with Barclays but unfortunately the lender pulled out of the deal due to Ofsted rating the nursery as “Poor” in a recent report. Our team approached other commercial lenders, but none were willing to offer funding because the Ofsted review posed a risk to the nursery business.
None of the customer’s other properties could be used as security to repay the bridging loan, so he remained in regular contact with our team to ensure that we could act quickly as soon as the matter was resolved. The customer appealed the Ofsted report but it was not upheld, after several months had passed he did eventually manage to have a new report taken which rated the nursery as “Good.”
Our Mortgage Broker immediately reviewed whether Barclays was able to still offer the best deal, which fortunately they were, so we worked with the customer to collect the additional documents the lender required. The commercial mortgage on the children’s nursery completed quickly providing the customer with the funds required to repay the bridging loan.
This case study is for illustrative purposes only.