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BRIGHTSTAR TAKES HOLISTIC APPROACH AND DELIVERS A BESPOKE SOLUTION TO SECURE A DREAM HOME

Objective

A broker’s clients were looking to finance a large self-build project; they hoped to knock down their £1.5m residential property and start again from the ground up.  The introducer asked Brightstar to look at options across several lending areas, including Bridging Finance.

Obstacle

The clients had an outstanding balance of £900k on their mortgage so needed to be able to settle that with the first stage draw down. They also needed to borrow £1.7m for the build costs. This project was unusual due to the amount of funding required and many self-build products have an upper lending limit of £2m due to the higher risk related to this type of finance, but we didn’t give up.

Outcome

The case has now completed, and the self-build project is underway.  The build is estimated to take around 12 months and the final value is likely to be around £3.5m

The case was placed with a building society on a self-build product rather than a bridging facility; firstly, because this case would have been a regulated bridge with a maximum term of 12 months. As the estimated build time was also 12 months, this could have been risky if the build overran.  Secondly, the rate and fees combined worked out more favourable overall for the clients.

Stephanie in our specialist residential mortgage team worked closely with the building society to agree an exception whereby they went £600,000 over their maximum lending limit, and agreed a bespoke rate for the finance.

The product obtained was a 2-year term, interest only, discounted rate of 5.02% with no ERC’s so after the build is finished and signed off, the clients are free to refinance onto a traditional mortgage.

The introducer was paid a five figure commission.

 

 

SUBJECT TO STATUS. 

PRODUCT AND CRITERIA AVAILABILITY SUBJECT TO CHANGE OR WITHDRAWAL AT ANY TIME.

FOR INTERMEDIARIES ONLY.

 

 

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