Funding 365 trims rate and removes exit fee on light development loans

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  • 29/09/2020
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Funding 365 trims rate and removes exit fee on light development loans
Funding 365 has cut the rate on its light development loans by 0.05 per cent and removed the exit fee.

 

The lender entered the development finance market early last month with a rate for its light product starting at 0.79 per cent per month, which has now been cut to 0.74 per cent per month with no exit fee.

The product is designed to enable property developers to carry out heavy refurbishments, extensions, building conversions and permitted development schemes, as well as finish and exit development projects.

Loans are available between £200,000 to £3m in size and for properties in England and Wales for up to 24 months.

The maximum loan to value (LTV) is 75 per cent on day one and clients can also borrow up to 100 per cent cost of works, up to a maximum loan to gross development value (LTGDV) of 70 per cent.

A two per cent arrangement fee applies plus legal and valuation or monitoring fees at market rate.

Funding 365 marketing director Laura Kendall (pictured) said: “We previously included an exit fee in our light development product as this is how the majority of development lenders price their loans.

“But as we’ve settled into the development market we’ve found that most of our brokers and borrowers appreciate their loans being priced in the same way that we price our bridging loans, with no exit fees.

“We also found that we were, in practice, writing some loans that were a little lower than our advertised interest rate, so we adjusted that too,” she added.

 

 

 

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