Bridging
Lankey and Martin launch Chordis Capital with £250m lending goal
Specialist lender Chordis Capital has launched with a bridging finance offering and plans to extend into buy-to-let, development finance and commercial mortgages.
Industry stalwarts Rob Lankey and Russell Martin are behind the lender and told Specialist Lending Solutions their aim is to lend £250m in the first two years with backing from an unnamed funding partner.
Chordis Capital is part of the ARMCo group, of which Martin is chairman, which includes broker and distributor Finance 4 Business.
Lankey, who will take the position of managing director at Choris, has more than 30 years’ experience in the commercial and specialist lending sector.
He spent 17 years at Norwich and Peterborough Building Society before eventually becoming part of the founding team at Aldermore.
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Lankey has also held positions at Amicus and Shawbrook and was chief executive officer of the National Association of Commercial Finance Brokers (NACFB).
“Chordis Capital will provide a much-needed lending source for businesses, property investors and developers emerging in a post-pandemic world, where access to finance can be more challenging,” it said.
The lender’s initial offering is available only through Finance 4 Business at present.
Chordis Capital told Specialist Lending Solutions that distribution “is sufficient to exceed Chordis’ initial budgets, and will ensure that as a lender we can remain nimble through a relatively light headcount”.
It added: “As the business matures, we will be seeking further quality partnerships to continue the growth trajectory.”
Bridging products
It has three types of non-regulated bridging finance – standard bridging with limited repair or refurbishment work, light refurbishment and heavy refurbishment.
Loans are available between £50,000 and £5m with loan to values (LTV) capped at 75 per cent of current market value, although it will consider LTVs up to 85 per cent where higher leverage is required.
Rates start from 0.85 per cent per month, with a £995 application fee and two per cent arrangement fee.
It will consider standard residential properties, multi-unit residential properties and houses in multiple occupation (HMOs), mixed-use properties and commercial properties with planning consent to convert into residential.
Buy-to-let and development finance soon
On its website, Chordis said it will be “lending on buy to let loans soon” and will consider a wide range of residential properties including flats above commercial, holiday lets, HMOs and multi-unit freehold blocks.
Loans will be available for individuals and limited companies for portfolio and non-portfolio landlords.
Its development finance offering is also expected to launch soon and will be open to speculative residential developments such as new build, conversions and refurbishment; and also mixed residential and commercial schemes.
The commercial finance offering is expected “in due course”.
David Totney joining
David Totney will be joining as a non-executive director and chairman of Chordis. He has held senior positions at Santander and is a former executive board director at Lloyds Commercial Finance.
Rob Lankey, managing director of Chordis, said the pair had kicked around the concept of a broker/lender relationship for some time.
“With no legacy loan books, a strong funding line and the chance to build rapidly as the country emerges from lockdowns, the timing is ideal,” he said.
“We expect there will be a strong uplift in businesses and investors looking for finance, but who don’t meet the criteria of other lenders, for a variety of reasons.
“Being new, we are not impacted by some of the huge challenges other lenders have faced as a result of the impacts of the Covid-19 pandemic,” he added.
Russell Martin, co-founder of Chordis and chairman of the ARMCo group, said: “I’ve wanted to launch a lender into my ARMCo group of companies for quite some time, but there’s only one person in the market I would take this step with, and that’s Rob Lankey.
“Rob’s track record and reputation speaks for itself, and to bring a new lender to market in under six months during the toughest period of restrictions we’ve all endured, is an achievement we’re very proud of.”
The firm has also opened new offices in Peterborough and is looking to recruit for the lender.