Somo has completed a £1.63m refinance for a borrower facing the expiry of an existing bridging loan on a buy-to-let property in Hornchurch.
The loan was used to redeem a previous bridging facility that had originally funded the purchase of the property.
With the outgoing bridge carrying a redemption figure of £1.826m and nearing expiry, the case required a lender able to move quickly while taking account of the wider funding position.
According to Somo, the refinance was completed as a straight replacement facility, with no capital raise involved.
The borrower, referred to as Miss A, had a clean profile and no adverse credit history, but the size of the loan and the time pressure meant the transaction still carried execution risk.
Somo said the refinance also depended on a contribution of about £366,000 from the completed sale of another property. That element required supporting evidence and confirmation from solicitors ahead of completion.
The lender structured a first charge facility of £1,630,000 at 65% LTV against the Hornchurch asset, which was valued at £2.5m.
Somo said the deal was supported by the strength of the underlying property and established rental income.
The lender redeemed the outgoing bridge in full, allowing the borrower to move on to longer-term buy-to-let finance.
