With funds already borrowed to complete an investment property renovation, the developer had a sale arranged until the buyer pulled out.

The borrower had another buyer lined up, but thought it would be impossible to complete the sale in the three days left before his loan deadline.

The borrower approached HFBS as he worked out that it would be considerably better for him to take an account with HFBS rather than defaulting or extending with his existing lender.

Ian Broadbent, director at HFBS, said that usually it would be incredibly cautious when looking at re-bridging a bridge that had failed, but it was clear to see that the developer was simply in an unfortunate situation.

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“His buyer had backed out leaving him three days away from his loan deadline, with a fee of £7,000 added should he fail to settle.”

The deadline for the borrower’s existing lender to receive the funds was 4pm on the Friday. 

HFBS issued documents to the client on the Wednesday, visited the development on the Thursday and paid out the loan on the Friday to meet the deadline.

Ian continued: “The completed development was top quality and had been marketed aggressively to line up a back-up sale immediately. 

“As there was another sale agreed, we obtained confirmation of the sale price from the solicitor, had the sales agent particulars and comparables all stacked up, which left us happy to fund £59,545 as a second charge of £196,527, with a sale agreed at £463,000.”