Clever Lending Secures Business Loan for Client’s Commercial Investment

An accountancy firm working with the broker aimed to expand and required larger office space for its operations.

Steve Sanderson of Clever Lending chose to collaborate with Together because they offered a homeowner business loan (HOBL), which was suitable to meet the client’s tight schedule for their expansion.

HOBLs serve as valuable financing options for new and current business owners needing funds, as long as they own a home with a first charge mortgage. It allows them to borrow against their residential property up to a 75% loan to value (LTV) ratio for business purposes. The HOBL operates separately from the initial mortgage with distinct rates and payment terms.

“Working with Together has allowed us to consistently finalize deals promptly, ensuring our client’s business growth objectives stay on track.”
– Steve Sanderson – Clever Lending

To ensure the process moved forward efficiently, Clever Lending utilized an Automatic Valuation Model (AVM). Together can approve an AVM for HOBLs depending on the loan amount and the confidence level of the AVM. The process was further streamlined since no external solicitors were involved – the loan was completed using Together’s in-house legal team.

Notably, taking out a HOBL typically does not require the consent of the primary mortgage lender, avoiding delays.

The finance provided by Together was £61,283 with a loan-to-value (LTV) ratio of 70%.

Steve Sanderson, a specialist in commercial and bridging at Clever Lending, said: “With our established connections across various specialized lenders, we can offer multiple financial solutions to satisfy client needs. In this situation, the optimal choice was a homeowner business loan, giving faster access to capital than available through a second-charge mortgage.

“Our history of collaboration with Together ensured we could finalize this deal within the necessary time frame, in line with the client’s expansion timing.”

Joanna Elton, Regional Account Manager at Together, remarked: “The successful funding showcases the effective cooperation between Clever Lending, our legal partners, and our funding procedures. We focus on the specifics of the borrower’s situation to provide the best possible loan when they need to capitalize on business expansion opportunities.”