HFBS has delivered an £85,000 second charge bridging loan in five days to support a property developer completing a London project.
HFBS made a round-trip of several hours to meet the client in person and complete the deal on time, and the funds were delivered in five days.
The developer previously secured a small second charge bridging loan against his home address to finance the project.
Delays and cost overruns left the development incomplete and unsellable.
The existing lender, which initially indicated they might offer further funding and an extension, withdrew its support days before the loan was due for repayment on 28th March, 2025.
The client then needed £85,000 to clear the outstanding balance and an additional £50,000 to complete the project.
The client, contacting HFBS through a broker on 24th March 2025 received an immediate response; HFBS then approved the deal, sent out the full offer pack, and instructed a valuation on the same day.
By 25th March, 2025 HFBS had gathered information from the previous lender and the first mortgagee.
The valuation took place on 26th March and the report was received the next day.
HFBS travelled to the client’s home in Norfolk on 27th March to facilitate the signing of the legal charge.
The completed pack was returned to the office and the advance was released on 28th March meeting the lender’s deadline.
Dan Yendall-Collings, senior underwriter at HFBS, said: “We understand things don’t always go to plan.
“In this case, the client had overrun on both time and budget, but the deal still made sense, so we were happy to jump in and provide an opportunity to get the whole thing completed enabling him to realise the equity and profit in the development deal.
“We couldn’t secure on the development project as it was owned in the name of his limited company, but we could raise him the funds as a second charge on his home address with the purpose of funds being for business use.”
The £85,000 second charge bridge followed a £60,000 first mortgage against a valuation of £250,000 and was offered at a rate of 1.29% over 12 months.
The loan enabled the developer to continue with the project and move towards a sale.
