The lender was founded by chairman Mike Clare, former stock brokers Lewis Casserley and Jordan Fearnley Brown. Casserley and Fearnley Brown have already been providing bridging finance for two years through Edgarley Finance.
All current loans and pipeline deals will be honoured by Edgarley Finance and any new business will be transferred over to Albatross Capital.
Clare was the founder and CEO of bed furniture retailer Dreams, and he sold the company for £222m in 2008 to focus on investment opportunities. He will be the main funding provider for Albatross.
The next 12 months will be dedicated to building the foundations of the lender and once its loan book reaches a certain level, it will begin to seek wholesale finance, Albatross said.
Albatross Capital offers bridging loans up to 75 per cent gross development value (GDV) with loan amounts from £26,000 to £15m. These loans have a maximum term of 18 months.
Its second charge loans are offered up to 70 per cent GDV, with amounts also from £26,000 to £15m. The terms for these loans are 24 months.
Albatross’ development funding loans are available for commercial and residential properties and interest can be rolled up if a sale is required. This is offered up to 70 per cent GDV and has a maximum term of 24 months.
According to its website, the company promises to make a loan decision in 24 hours and provide funding in five days.
Opportunity in adversity
Speaking about launching during a pandemic, Fearnley Brown said it was unknown how current circumstances would affect business but added: “Where there is adversity, there is opportunity.”
Fearnley Brown said: “Naturally, we’re treating all new business with a cautious approach, factoring for price adjustments, economic downturns and so on.
“However, where Albatross Capital has a competitive advantage is we don’t have an existing loan book that is now causing us problems, like many others do. We’re fresh, new and with one focus in mind which is to help this market in its time of need and build relationships with brokers throughout this pandemic that will last a lifetime.”