Ultimate Finance provides £592,000 bridge for Scottish purchase

Ultimate Finance has provided a £592,000 bridging loan to fund a property investor's purchase of four flats in the same building in Scotland.

The 12-month facility was arranged by Paul O'Reilly of Jerroms Mortgage & Finance Ltd.

Making the most of a discount

The investor bought the flats below market value. The loan was set at 75% LTV against the properties' value, which meant the net loan covered 87% of the actual purchase price.

This shows how a discounted purchase can work in a borrower's favour. Lending against market value rather than the price paid lets the investor fund more of the purchase while the lender stays within its normal LTV limits.

Buying several units in one building can also help investors manage the properties more efficiently, and gives them options later, such as refinancing the flats together onto a longer-term loan.

Built on repeat business

The borrower had worked with Ultimate Finance before.

When a borrower comes back to us, it tells you we've built trust.

Alice van Duijvenvoorde, Regional Director at Ultimate Finance, said returning clients know the lender will be clear, move quickly and stay closely involved in the deal, which is what makes repeat business so valuable.

O'Reilly said that deals move more smoothly with a lender that understands both the borrower and the opportunity. He added that, for portfolio investors, keeping momentum is key, and a lender that can keep pace makes a real difference.