Medium Term Loan Case Study – Harold Road

By: Emma Gettings

This is a medium term loan to a borrower who wanted to purchase a property that is currently tenanted by his relatives. Broker anticipates being able to get mainstream funding within 3 years.

Loan £64,000
Valuation £564,000
Loan to Value 58% (Inc. first charge of £260,000
Interest rate 0.83% pcm
Total Return £22,580
Term 36 months

With a sitting tenant the property itself was insufficient so we have taken a second charge over the borrower’s main residence with over £300,000 equity.