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Avamore secures long-term funding line to offer cheaper rates

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  • 12/06/2019
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Avamore secures long-term funding line to offer cheaper rates
Avamore Capital has secured its second institutional funding line allowing it to offer a 6.5 per cent per year interest rate on conversion schemes.

 

Since closing the agreement at the end of Q1 2019, the lender said it had completed a number of transactions at the new rate.

A spokesperson from Avamore told Mortgage Solutions that this was “a long-term deal,” but that the lender could not disclose any further information at this stage.

The first transaction was closed in April on a two-storey detached building in Wembley Park which the developer is converting into eight self-contained flats.

The loan was about £1.7m with an loan to gross development value (LTGDV) of 65 per cent. Others include a £500,000 deal on the conversion of an ex-pub into 10 residential flats and one retail unit in Luton, and a £2.2m facility with a repeat borrower in Tonbridge, Kent.

Zuhair Mirza, principal at Avamore, said: “Over the last 12-months we have passed significant landmarks including obtaining our first ever institutional funding line, launching a market leading product and passing £100m of lending.

“It is important to us that we remain true to our initial values and so, we continue to be transparent, responsive and predictable providing the service expected of a small specialist lender but now, we have market leading rates to accompany that.

“We wanted to pilot the new conversion product in the market before announcing the lower rate. We are excited to now make this public announcement and look forward to supporting brokers and borrowers in their conversion projects.”

The borrower on the first transaction at the 6.5 per cent rate, Matthew Jordan, said the pricing on the loan was appealing and he was pleased with the service.

 

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