Alternative Bridging provides £967,000 second charge facility
The second charge facility was secured against a £2.4m residential property in Stanmore at 70% loan-to-value (LTV).
Alternative Bridging Corporation provided a £967,000 overdraft facility to a property investor.
The second charge facility was secured against a £2.4m residential property in Stanmore at 70% loan-to-value (LTV).
The borrower wanted access to revolving capital for future property acquisitions instead of arranging separate finance for each deal.
The facility allowed the investor to draw funds when needed and repay them as capital was released from other projects. Interest was charged only on the amount drawn.
Taylor Osunsedo (pictured), business development manager at Alternative Bridging Corporation, said: “Experienced property investors do not always know where their next opportunity will come from, but when the right deal appears, the ability to act quickly can make a real difference.
“In this case, the client was not raising funds for one specific purchase.
“They wanted capital available in advance, so they were not starting a new finance application each time an opportunity came onto their radar.”
Osunsedo added: “Using a second charge also meant we could provide that access to funds without disturbing the existing first charge.
“For brokers, there’s a wider point here about looking at how active property investors intend to use finance over the next 12 months, rather than focusing only on the deal in front of them.
“When a client has a strong track record and suitable equity, putting a reusable facility in place can give them far more freedom to act when the next opportunity arises.”
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