Unexpected and unplanned: how Swoop helped a customer secure a commercial mortgage

Unfair rent hikes give tenants a reason to buy. A stroke of luck and Swoop’s know-how got them moving

Have you ever looked at a bill and thought “I’m in the wrong business”?

When the roof started leaking at our client’s rented property, they called their landlord to fix it while they counted the costs: water damage, a loss of productivity, and while our client temporarily relocated for repairs to be carried out, upheaval. What they didn’t expect during the disruption was a sizable rent increase. 

For our client who had seen other costs going up, it was a step too far. They were attracted by the idea that buying a property would be cheaper and accrue into a valuable asset over the coming years and located a property to buy. Unfortunately, they did not have sufficient funds for a deposit; on top of this, existing borrowing for equipment and vans meant they had difficulty in demonstrating affordability.

With Swoop’s help, though, a way forward was established. Swoop took the time to discuss our client’s issues, landing on the solution of restructuring short-term lending to improve cash flow in the short term. While exploring options for a deposit, a family member made a gift that covered the funding shortfall. 

We managed to turn around a customer who was not immediately well placed to secure a commercial mortgage and who had no real plan to buy until the unexpected rent increase forced their hand. Through streamlining their current borrowing and the stroke of luck in getting a gift, Swoop secured a lender that accepted our client’s application. 

Thanks to their property purchase, the customer is now more in control of their costs and by choosing a fixed rate loan can plan their monthly loan repayments confidently. They didn’t expect to be purchasing a property, but with our help and a little luck they’ve made a great decision for their business.