Colenko has provided a £570,000 bridging loan within 48 hours after a borrower’s original lender was unable to release funds in time for a residential purchase.
The 12-month facility was used to complete the acquisition of a detached four-bedroom property in Woking, with the loan written at 75% LTV.
Interest is charged at 0.99% a month, with the borrower intending to refinance the property onto a term mortgage as the exit from the bridge.
FAST-TRACK COMPLETION
Colenko began underwriting when the application was received, with the valuation, legal work and underwriting carried out concurrently to meet the purchase deadline.
An automated valuation model was used instead of a physical valuation, while title insurance was also employed to reduce the time required for the legal process.
The facility completed within 48 hours of the application being submitted, allowing the purchase to proceed after the term lender was unable to provide the required funding within the transaction timetable.
The 12-month term gives the borrower time to arrange the planned longer-term refinancing.
