Mortgages for Business has revealed details of a complex refinance transaction it has just brokered.
It involved three lenders, eight multi-unit freehold properties and ensured the deals all completed on the same day.
The client, a professional landlord with a portfolio of more than 70 London properties, was looking to refinance a facility worth £7.4 million with Barclays Bank. Unfortunately Barclays was only willing to offer a repayment option and the client preferred interest-only terms. The properties were eight large, freehold houses in North London, all converted into flats.
Steve Olejnik, sales director at Mortgages for Business said: “Having already reached the maximum funding limits with a number of lenders, we realised that the best solution for our client was to split the refinance into two tranches.
“First we arranged a facility of £1.8 million with Norwich & Peterborough for three of the properties on 3.99% over Bank Rate. We took the remaining five houses to Shawbrook Bank who agreed £5.6 million at a rate of 4.75% over LIBOR.”
The first challenge for the team at Mortgages for Business was to get the facility with Barclays repaid by the two new lenders on the same day. This involved careful communication and planning with not only with Barclays, N&P and Shawbrook but also with their respective legal representation.
“This was quite a challenge for us because on the day in question, our commercial lending team was due to be off on a corporate day,” said Stuart Benge, national commercial sales manager at Norwich & Peterborough.
“Despite this added complication the case managers at Mortgages for Business kept everyone involved on track. Consequently the transactions were successfully completed and the facility with Barclays was repaid on time.“
Emma Cox, senior relationship manager for Shawbrook Bank said: “The high level of professionalism shown by Mortgages for Business organising this complex deal demonstrates why they are one of our strategic partners.”