Tight timings and poor credit for a 'straightforward' residential purchase

Situation

On the surface this was a very straightforward purchase. A large residential property that the borrower planned to turn into an HMO after a small amount of refurbishment.

As is so often the case, the borrower needed to get everything done quickly, in this instance because their valuation was about to expire. This wasn’t a problem for us – we’re more than familiar with moving at pace to get everything underway.

Even with several client complexities, including a previous bankruptcy, we were determined to find a solution that would work for them and us.

Solution

Given they had settled their bankruptcy over 12 months previously, we offered 65% LTV. We were perfectly comfortable with this, given how many successful HMO projects the borrower had completed since then. As they had recently sold another property they had the funds to make up the difference, and everything was good to go.

But the valuation expiry date was looming. So we got all parties on a video call to make sure everyone understood what was required to get it over the line. Thanks to some open and honest discussions, everything was set to meet the deadline.

Result

Hope Capital completed the loan inside nine days of the initial enquiry. Transparent communication and a big push on paperwork meant the deal was completed comfortably before the valuation expired. The client was delighted with the result, and the broker was extremely impressed too.