In addition to the £183,000 secured to buy the property from Just Bridging Loans plc, an additional £30,000 will also be made available for renovations once the landlord has secured the requisite planning permission.

Samantha Williamson, business development manager at Positive Commercial Finance, said many lenders were still operating to standard terms and she added: “This particular lender is quite unique from what I can see. They have got a little bit of a niche there, but not everyone fits their criteria.”

Explaining the terms of the finance, Williamson said the loan was for a 12-month term, with interest set at 1.45% per month (compounded and rolled up) and it carried a 2% lender fee.

In addition she said borrowers had to have existing property with equity, although this was not used as security.

She said: “Borrowers have to have property with equity and so it does not fit everybody… They call it visible security so they do not take a charge on it, but they have to be satisfied that there is enough equity there, just in case anything went wrong.”

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Episode 5: Larger Loans and Complex Lending: Powered by Partnership podcast from Newcastle for Intermediaries

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