The deal, which involved a £590,000 loan with a 60% loan-to-value (LTV), is believed to be a record for completing a deal where the lender and borrower were unknown to one another previously.
The borrower was introduced by Target Capital after being unable to negotiate an extension on an expiring development loan for a house conversion project with the customer’s existing high street lender. The property, originally a three-bedroom end-of-terrace house in East London, has now been extended and renovated to become a seven-bedroom home for a family to rent.
Following completion of the deal, the borrower now intends to move to a longer-term buy-to-let mortgage.
Matt Tooth, head of distribution at LendInvest, said: “The case was very well presented by the borrower and her broker, which enabled our team to promptly and confidently approve the proposal within hours. Equally, we instructed a valuation that was turned around and shared with all parties electronically within hours.”
However, Tooth added that ‘too many delays and mistakes’ continued to tarnish the bridging industry’s reputation.
“With this deal setting a benchmark, we hope that before too long, speed becomes the norm in an industry that embraces the power of technology to streamline the underwriting process,” he added.