The borrower was a dot.com entrepreneur, that required a quick cash-flow injection for his internet start-up business. The borrower had an unencumbered flat in St Johns Wood, that he used as security for the loan.
The borrower was looking for access to quick funding, and was able to use an investment property in St Johns Wood in London, as security for the bridging loan.
The property was valued at £1.7 million, and the borrower required a loan of £475,000; providing a Loan To Valuation of 30%.
The borrower was wanting the funding very quickly in order to capitalise on another opportunity for his internet business.
Whilst the borrower has two separate private banking relationships, neither bank was going to be able to provide the funding within a 7 day time-frame. The bridging loan was provided within a week of the borrower making the loan application.
The loan was subsequently repaid by one of these private banks that the borrower has an account with. Whilst the borrower had a good relationship with this particular private bank, it still took them nearly 8 weeks to complete the refinance of the bridging loan.