Crystal Mortgages has completed a £1 million refinance package for a boutique hotel in central London.
The owner sought assistance after several high street banks refused to assist with the transference of a bridging loan into a mortgage-based repayment plan, despite what Crystal says were excellent” accounts, a proven track record as a successful business and a minimal loan-to-value (LTV).
In 21 working days, a 10 year repayment plan was completed which reduced payments to £12,000 per month from an interest only schedule costing circa £30,000 per month. Money was sourced through the company’s exclusive funding lines.
“The client had a provable annual personal income which he drew from the hotel, but because of an investment in a new venture he withdrew a large one-off payment last year,” said Roger Dewsbery (pictured), senior underwriter for Crystal Mortgages.
“High street lenders weren’t happy with this as they thought the client would have this same drawing requirement on an ongoing basis, but a close examination of the situation showed clearly that this was a prime deal with no discernible risk whatsoever.
“The fact that major banks were unwilling to take the time to fully understand the situation is indicative of the current lending problems blighting SMEs. We will continue to judge every application on a case-by-case basis and will offer the best financial solution possible.”