‘Human-centred approach’ supports deal for Home Office housing

30 October 2024

A new development of homes for the vulnerable hit a problem when a change of policy by the intended lender meant a deal for finance couldn’t go ahead.

The customer needed a lender who was happy to accept properties on a long-term lease and needed to find a more cost-efficient form of lending to pay off a loan used to exit bridging finance.

Kevin Morgan of Cornerstone Finance Group contacted Redwood Bank knowing its manual underwriting would provide the best chance of success.

Redwood business development manager Rob Thompson 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 featured four new builds on one title, three with four bedrooms and one with five. The properties, just south of Bristol city centre, are let on corporate leases to one of the largest providers of housing to the Home Office.

Although not responsible for the hitch, the client still needed to find a solution, especially as they had already paid for the valuation.

Rob liaised directly with the client, reassuring them that there would not be any duplicated costs. A number of hurdles relating to the property title were spotted, but nothing that prevented Redwood from being able to make a suitable offer.

The Bank was also able to help the client be more cost efficient compared to the current lender. Their efforts in being environmentally friendly with an A-rated EPC also earned them a Green Reward cashback of 0.50%.

The client received £969,000, with an LTV of 48.8 per cent against their £1,985,000 properties with a 10-year interest-only deal on a five-year fixed term.

By working closely with the client, Rob was able to move quickly to find solutions that suited all parties.

Kevin Morgan, of Cornerstone Finance Group, 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.”

Read more here https://redwoodbank.co.uk/news/case-study/when-one-door-closes-redwood-opens-another%E2%80%A6/