Loan type: Bridging Loan / Buy-to-Let Mortgage | Amount: £401,724 / £2,037,793 | LTV: 33% / 64% | Term: 12 months / 25 years
We recently assisted a portfolio landlord to purchase a property at auction with a bridging loan while simultaneously providing a buy-to-let mortgage to quickly refinance the bridge and allow extra funds for further purchases.
Read on to discover how the Aria Finance team closely collaborated with the client to devise a successful strategy that met their immediate needs while also placing them in a strong position for future growth.
The Client:
Our client in this case was an experienced landlord, with a large property portfolio, consisting of 13 houses and flats, which was currently owned in his personal name with mortgages.
The Situation:
The client had purchased a commercial property at auction and had approached Aria Finance for assistance in completing the purchase within the strict 28-day timeframe in place for auction purchases. The client wanted to avoid taking out a bridging loan due to the cost difference between term and short-term finance.
Our Solution:
Speed was key for the client in this case. Due to the nature of purchasing a property at auction, a bridging loan was the only suitable option for the client to secure the property. To mitigate, we put in place a plan which would enable the client to quickly exit the bridge, saving them from incurring too much interest on the bridging loan.
Our team set to work and reviewed the client's portfolio to see if there were any assets within the portfolio that could be used to raise the funds required. We quickly identified 12 properties within the client's portfolio where the existing buy-to-let could be refinanced to raise funds that would allow the client to exit the bridge.
The application was pending with the Land Registry to update the titles on the properties, and we had to take an active role to help get these applications expedited.
Benefits & Results:
Aria Finance successfully arranged a portfolio remortgage for the client in just over two months, which meant the client avoided paying interest for the whole term of the bridge.
In addition, we structured the refinance to allow the client extra funds for further purchases enabling them to grow their portfolio without needing to take out a further bridging loan.
By working with Aria Finance, clients gain access to bespoke financial solutions that not only meet their immediate needs but also empower them to achieve their long-term property investment plans.
