Bridging Spotlight: Navigating Financial Hurdles With Expertise & Innovation


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Client Challenge

A client found himself in a challenging financial situation when he exceeded the term of his original bridging loan by two months. The lender was imposing significant interest costs for each additional month. Initially, the balance at the end of his original term was £329,000. However, as a result of these additional charges, the amount needed for re-bridging had escalated to £370,000.

Initial Setback

The challenges escalated when our client paid for a valuation, the subsequent report down valued the property by £95,000 leaving him with a £22,000 shortfall. Despite our efforts to reduce the term from 12 to nine months, the remaining shortfall remained at approximately £10,000, pushing the boundaries of the maximum loan-to-value (LTV) the lender was willing to extend. Despite the client’s efforts to borrow funds of £4,000 from friends and family, a shortfall still remained, leaving him in a precarious situation.

Strategic Negotiation and Creative Solutions

Keen to help this client overcome these hurdles, Fluent’s Senior Bridging Advisor, Chet Hirani, approached the client’s lender to try and negotiate the redemption figure; but there was no movement at all.  Although the client’s existing lender was unyielding, Chet utilised his relations with MT Finance and Raphael Benngio (Head of Lending – Bridging Finance at MT Finance), who stepped forward with a pivotal decision to lend the additional £10,000 needed, thus preventing a further £12,000 in interest and fees. This timely intervention brought the borrowing amount back to the manageable sum of £370,000.

Overcoming Further Obstacles

Just when Chet thought the pathway was clear for his client, he encountered another significant obstacle. A local authority search was required for the property, due to ongoing works needing planning approval. However, a cyber-attack on the council’s systems made it impossible to conduct the required search. Keen to overcome this additional challenge, Chet explained, “I engaged directly with David Kingham, Underwriter at MT Finance, to discuss alternative ways round this problem. Despite David explaining that the search was unavoidable and compulsory, after considering all options, I asked the client to provide the latest building reg inspection and evidence of all the works being carried out from that point to now.

I then provided David with comprehensive documentation of the works, including certificates, videos and photographic evidence. David then agreed to proceed with a no-search indemnity insurance, thereby keeping the loan process on track.”

Exceptional Support From Our Lending Partner

Working collaboratively, our lending partner MT Finance and Chet demonstrated flexibility, understanding and essentially helped the client not once, but twice, in avoiding additional costs and successfully completing the loan on time. Their willingness to go beyond conventional lending practices and consider pragmatic solutions played a crucial role in overcoming hurdles.

Discussing completion on this case, Chet said: “Special thanks to Raphael Benngio and David Kingham at MT Finance for their exceptional support throughout this process. Their actions exemplify the importance of having a panel of knowledgeable and flexible partners in the industry.

This particular case also highlights the complexities of financial negotiations and the importance of creative problem-solving, strong partnerships, and a client-focused approach. Our team’s expertise and dedication, combined with the support from our lending partner, ensured a successful outcome for our client, who was immensely grateful for the resolution. This experience reinforces our commitment here at Fluent to overcoming financial challenges through collaboration and persistence and using our industry expertise to get deals over the line.”

David at MT Finance added “I am delighted that we were able to provide a solution for Chet’s client. We have always prided ourselves on our ability to think outside of the box and assess each case on its individual merits – and that is exactly what we did. It is hugely important to us to be able to find solutions for our clients, but this wouldn’t have been possible in this instance without Chet’s determination.”

For any bridging queries, please don’t hesitate to get in touch with our broker team or call us on 01204 472030.