Redwood Bank has funded a housing development for vulnerable individuals which faced issues when a policy change from the intended lender halted financing.
The customer required a lender willing to accept long-term lease properties and sought a more cost-effective solution to exit bridging finance.
Kevin Morgan of Cornerstone Finance Group contacted Redwood Bank.
Rob Thompson (pictured), business development manager at Redwood, said: “This is a strong example of our human-centred approach to underwriting and dedication to supporting British businesses and the wider community.
“Our ability to accept longer-term leases attracted this case to us, and our competitive interest rates enabled us to secure it.”
The development consisted of four homes south of Bristol city centre, including three four-bedroom properties and one five-bedroom property, all let on corporate leases to a major provider of housing for the Home Office.
The client had already incurred costs for the valuation despite not being responsible for the issue, and there were several property title hurdles.
Their commitment to being environmentally friendly, demonstrated by an A-rated EPC, earned them a Green Reward cashback of 0.50%.
The client obtained a £969,000 loan with a loan-to-value (LTV) ratio of 48.8% against their £1,985,000 properties, structured as a 10-year interest-only deal on a 5-year fixed term.
Morgan said: “Redwood stepped in after another lender could no longer accept the criteria. They accepted the existing valuation and were able to get the finance the client needed to exit their bridge.”