United Trust Bank (UTB) has lent a £100,000 bridge at 41% LTV to go towards a deposit for the purchase of an investment property and settle outstanding credit card debts of the company’s sole shareholder and director.
The property, a detached five bedroomed house in North Yorkshire, had recently undergone a comprehensive refurbishment having been purchased only four months prior with the intention of being improved and sold at a profit.
The credit card debts were accumulated by the company’s shareholder in funding the refurbishment project, which she now wished to repay.
The house was to be placed on the market for sale prior to commencement of the loan, with the sale proceeds being used as the exit.
As the loan met criteria, UTB did not require a formal valuation to be carried out on the security property and instead relied upon an automated valuation model (AVM) as an indication of the property’s value. This sped up the process and minimised costs for the customer.
The customer was able to draw down funds quickly and this enabled her to purchase a new investment property with the intention of carrying out a similar scheme. The security property is now under offer with a sale expected to complete soon.