Engineering Funds for our Client’s Expansion Plans

Our customer owned an engineering factory in Hull and was experiencing an increase in demand due to an influx of new overseas customers. The increase in sales was projected to continue and to cope our client required some refurbishment to his existing trading premises and a large site extension.

The premises including the land was valued at £2 million and our customer had an existing mortgage of £500,000 still left to pay. A total of £250,000 was required which would enable the forecasted sales to increase by approximately 30%.

Our clients trading history was good but for the 3 years previous, sales had been flat. We presented the scenario to our high street partners but it did not fit their ultra-cautious requirements. The challenger bank equivalents looked at our client differently and could see the strength of the potential sales growth and of our client’s previous performance.

We were able to obtain a number of 1st charge solutions of £750,000 i.e. repay the current £500,000 mortgage plus add another £250,000 as required and also 2nd charge options i.e. the current mortgage would remain in situ and we would raise just the £250,000 extra required. Our client had a particular advantageous 1st charge so a 2nd charge option was financially better for them. As we had a number of firm offers on the table, we were able to negotiate with the interested lenders, to get the best possible deal for our client.

UK Property Finance always works closely with our clients and lending partners to get the best deal available. We listen to our customers and are actively involved in helping to drive through their business lending plan.