Signature Property Finance has completed a £106,500 bridging loan to support the auction purchase of a three-bedroom semi-detached house in Wolstanton, Newcastle-under-Lyme, Staffordshire, adding to an established property portfolio already spanning 26 properties.
Introduced by Ross and Leigh Taylor of BH Financial, the deal demonstrates Signature’s appetite for supporting experienced investors with clear acquisition strategies and proven portfolio management capabilities.
Supporting strategic portfolio growth
The borrower operates a portfolio of 26 properties with a combined value of £5 million and generates annual rental income exceeding £41,000. Its founder’s successful technology business has supported the growth of his property company.
The property was secured at auction for £142,000, representing good value in the local market. Signature’s facility provided 75% loan-to-value financing, with the borrower contributing the balance from existing business and personal reserves.
The borrower’s investment strategy focuses on acquiring properties requiring modernisation, carrying out targeted improvements, and refinancing onto buy-to-let mortgages based on enhanced values. The 12-month term provides sufficient time for the planned refurbishment works and refinance process, with Aldermore already engaged to provide the exit facility.
Well-located property in growing market
Wolstanton benefits from excellent transport connectivity, with easy access to the M6, A34 and A500, making it attractive to commuters working in Stoke-on-Trent, Manchester and the wider region. The area offers a family-oriented community with good local schools, parks and amenities, alongside relatively affordable property prices compared to neighbouring areas.
The property includes three bedrooms, driveway parking and a garage. While requiring modernisation, including window replacements, updated domestic services and damp remediation work, these improvements align with the borrower’s established acquisition and value-add strategy.
Local comparable sales demonstrate strong demand, with similar properties in the area averaging around £212,000, providing significant headroom above the purchase price. Rental comparables indicate an estimated rental value of around £13,000 per annum, supporting the planned refinance onto a buy-to-let mortgage.
Clear refinance path with strong fundamentals
The primary exit route is refinancing onto a buy-to-let mortgage with Aldermore, with an illustration already provided demonstrating viability. At the independently verified market rent of £12,000 per annum, interest cover exceeds requirements at 188%, providing comfortable margins for traditional mortgage lending.
With comparable sales averaging over £200,000 and the purchase price of £142,000, the property offers multiple exit options. The borrower has serviced interest throughout the term, supported by strong personal income and the profitability of their established business interests.
Leigh Taylor of BH Financial commented: “Working with experienced property investors makes the financing process straightforward. Their track record of acquiring, improving and successfully refinancing properties gives lenders the confidence needed for swift decision-making.
“Signature’s willingness to support auction purchases with tight timescales, combined with their understanding of the value-add refurbishment model, makes them an ideal partner for active portfolio investors.
“The certainty of funding, professional approach and good communication from their Business Development Manager, Sean Carbery has been exemplary throughout, making for a less stressful deal.”
Sean Carbery, Business Development Manager at Signature Property Finance, said: “This deal exemplifies the type of proposition we’re always keen to support. We’re backing an experienced investor with a proven strategy, strong financial fundamentals and clear exit routes, which hits all the right notes for Signature.
“The borrower’s portfolio demonstrates consistent execution of their buy-improve-refinance model, supported by robust personal finances and a highly successful business generating substantial profits. Newcastle-under-Lyme continues to offer good value for investors, with strong rental demand and connectivity to major employment centres.
“Supporting investors who improve housing stock while building sustainable portfolios aligns perfectly with our lending philosophy. With clear refinance terms already being progressed and multiple exit options available, we’re pleased to support this acquisition.”