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Our opening hours will change during the festive season.
Our opening hours will change during the festive season. We will close from 2.00pm on the 24th December and reopen at 9.00am on the 27th December. Our usual opening hours will then apply. We will be closed on the 1st January and reopen at 9.00am on the 2nd January.
Things aren’t always what they seem. One of the key benefits of manual underwriting is the ability to find out relevant information that computers aren’t equipped to uncover. A human underwriter can do more than look at the basic facts; they have the opportunity to take a holistic approach and evaluate business information an automated system isn’t equipped to assess.
When Redwood Bank was approached by Chris Thomas of FC Funding on behalf of a client whose fledgling business owned just one property, it soon found out that wasn’t the full story. The landlord had extensive property experience that Redwood was able to consider when deciding the case.
The client of FC Funding was a company formed in 2021 that owns an eight-bed HMO in Beckenham, Bromley, Greater London. The detached property, valued at £1.5m, is on a long-term lease to a Housing Association, a registered charity providing accommodation for the homeless.
The client was keen to refinance from their existing lender to a better deal, while also releasing additional equity to invest in further properties.
Chris from FC Funding contacted Redwood having had previous deals agreed, including one involving an HMO on a long-term lease rather than an AST, and knowing that the Bank has a flexible approach.
BDM Ian Tudor spoke to the broker and was able to understand the complete picture. While this firm of the client owned just one property, the client, a chartered accountant had significant property experience, managing a portfolio of more than 20 properties.
With all the information to hand, Redwood was able to provide £1.023m (LTV 68 per cent) on an initial five-year fixed, higher-fee, lower-rate residential investment mortgage with a total term of 20 years on interest only.
By opting for a higher-fee, lower-rate mortgage, the client could leverage the equity they needed to refinance the property and release £225,000 of additional funds to invest in further business growth.
Ian said: “. We were able to use the client’s significant property experience, alongside a robust risk assessment to provide the business with the finance they needed. The case was supported by a good quality asset in Greater London and a longer-term lease.
“We are growing our relationship with FC Funding. Chris knew we had the flexibility to consider the case for their client and he was also aware that we were happy to consider HMOs on long-term lets, having previously drawn down on a similar case with us.
“It is also gratifying to be able to support a business that plays an important social role.”
Chris said: “One of the big advantages of Redwood Bank is that each case is looked at on its own merits. In this case, it was clear that the client had extensive experience of owning properties and Redwood used that information to make him an offer that was cheaper than his existing mortgage and gave him money to invest further.
“Ian and his team worked hard to achieve the best result for my client.”