Case study: A day-by-day breakdown of a bridging deal
Written by Luke Stevenson
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Location: Ramsgate
Loan amount: £315,000
LTV: 70%
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A straight bridge and capital raise for a finished development.
Borrowers were using the loan to repay existing development finance, while accommodating a capital raise to pay investors and fund onward projects.
The plan was for the property to remain empty and the loan be repaid when it was sold.
The most notable thing about this case was the speed of delivery, from application to completion it was delivered in (just) under 10 days, including a new valuation and fully completed legals.
The underwriter who worked on the deal, Ryan Houssart, explains the step-by-step process of delivering a deal in this timeframe with the broker partner Harry Eddery:
Day 1: Harry submitted an application to us via the portal. Application reviewed same day, payment link for valuation sent and early instruction sent to solicitors in order to save time.
Solicitors were made aware on instruction of the tight deadline, to ensure we could set expectations.
Prior to links and instruction going out a full intro call was made to the broker to discuss the deal structure and how we would approach the process for the client.
Day 2: Valuation fee received. Full underwrite carried out on case including full review of security, credit searches and review of borrower profile.
Valuation instructed the same day with inspection date confirmed for 2 days’ time. Update sent out to Harry to confirm underwriting requirements.
Day 3 & 4: Awaiting valuations as undertakings are received and legal documents are issued.
Day 5: Valuation report received late Friday afternoon. Confirmed with the broker that the report was in and will be reviewed. Applicant attends solicitors office to sign legal docs.
Day 6: Valuation report reviewed in full and case submitted for Credit Approval/Offer. Case approved same day, offer sent to Harry and solicitors with confirmation that case is signed off.
Day 7: Legal works continue with solicitors notifying us of some potential delays with building regulations/sign off.
Case discussed internally with credit and Harry to find a work around that is covered by insurance. However we got the final points finalised, as well as the report on title as well as legal documents received in order for the case to be submitted for funding approval.
Day 8: Funds readily available and approved in order for the case to complete.
To get your faster bridging deals, get started by submitting your next enquiry through the portal.