Round-Up: January 2023’s Top Picks

Cornerstone Commercial Finance completions

Our commercial team had a strong start to the year, securing over £8m in funding for our clients across various sectors, from Education & Development to Hospitality.

BTL Portfolio Re-Mortgage | £2.1m

An experienced time landlord came to Cornerstone Finance looking to purchase an additional BTL property. On review we could clearly see an opportunity to re-structure the portfolio and save the client over £20k per annum in repayments.

We tied up the purchase using equity rather than cash for the deposit allowing the client to move onto the next target property and moved a number of individual mortgages into a far simpler and flexible portfolio loan.

Commercial Mortgage| £196,000

The applicant was looking for a mortgage to purchase a Nepalese pub, which also offered bed and breakfast. The sticking point was that the applicant was a first-time landlord, which limited options within the commercial space.

70% Loan to Value on a 2-year fixed product obtained, implying that the client can refinance in 2 years once they have relevant experience onto a more favourable long-term product.

BTL Mortgage – Purchase | £191,215

A first-time landlord came to Cornerstone Finance looking to purchase their first BTL property. The client was looking for the maximum loan available.

We sourced a suitable option where the client could borrow the desired loan amount on a 2-year variable rate.

BTL Remortgage | £103,021

Client came to Cornerstone Finance whilst completing refurbs to one of their BTL properties. Existing finance outstanding was with a bridging loan. At the time of approaching Cornerstone, the works were still a fair distance from completing.

We worked closely with the lender to line up application and valuation with the works being complete to a lettable standard. The deal completed in time for the bridging loan to be redeemed without penalty & allowed the client to release sufficient capital to re-invest into their portfolio.

Unsecured Business Loan | £100,000

We were approached following a client recommendation to assist with the sourcing of funding for the expansion of an existing business and the associated cashflow requirements. The business had changed from a partnership to a limited company within the last 15 months, and although they had secured new contracts for 2023, they were finding it difficult to obtain unsecured borrowing.

By reviewing the financials and forecasts, we were able to present the clients’ requirements in a manner favourable to the lenders. Fleximize took a sensible approach and agreed to provide unsecured funding within the clients’ timescales, meaning that there were no delays in starting the business expansion and taking on new clients due to having sufficient cashflow available.

Second Charge Bridging Loan | £50,000

Our clients required a second charge bridging loan to inject funds into their trading company as directors’ loans to assist with growth and to keep cash low while new contracts were negotiated. The repayment of the loan will be funds taken back from the company through profits/cashflow.

Due to the tight timescales during the festive period and there being a requirement for a second charge, we were able to use HFBS, as they operate extremely quickly and are competitively priced. HFBS were able to use online property comparables instead of a physical valuation and were in contact with the clients throughout.

The funding was put in place with sufficient time to cover outgoings and inject capital to assist with the new contracts starting in early 2023.

Unsecured Business Loan | £50,000

We were approached by a client to assist with sourcing cashflow finance to assist with new contracts and clients over the New Year period. The client had already been offered private secured; however, due to the lender’s requirements, the funding could not be provided within their timescales.

We were able to source funding secured by a personal guarantee through our connections with Fleximize, with funds delivered within the client’s timeframe.