This includes cuts of more than 1% per annum in some cases. HREF said pricing depended on collateral, meaning some rates could see larger reductions.
Brad Altberger, CEO of HREF, said: “Our swift growth has brought benefits and economies that we are keen to pass on to our borrowers and intermediaries as we consolidate our foothold in the UK market.
“We’re very excited that our growth is ahead of target and is bringing interest and opportunities to enable us to beat our plan, but cementing our place as a go-to bridge lender in the £5m-50m space is our near-term goal, and passing on economies and offering lower rates will help with that.”
HREF launched in 2023 and has completed loans within the £5m-30m mid-sized space. So far this year, it has provided finance to support purpose-built student accommodation (PBSA), hotel refinancing, serviced offices and residential developments.
This has been against projects across the UK and Ireland.
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Max Lewis, chief investment officer of HREF, added: “The market now better understands our core aims to lend rapidly, with a high degree of certainty on the right calibre of asset, and we’re showing that we can do deals in just two weeks with good collateral and track record.”
The lender recently completed its first deal in Ireland and continues to target growth, aiming to expand its loan book significantly across all real estate sectors this year.
HREF is a subsidiary of Hilco Global (Hilco), the financial services group.
RAW Capital Partners cuts high-LTV rates and simplifies risk pricing
Specialist lender RAW Capital Partners has reduced interest rates across its higher loan-to-value (LTV) products and introduced jurisdictional risk into its standard product pricing.
Rates on its 65% and 70% LTV mortgages have been cut by 0.25% and 0.5% respectively, and rates for foreign national borrowers now start at 6.24%.
RAW Capital Partners issues loans through its RAW Mortgage Fund to foreign nationals, UK expats and Channel Islanders. At the start of this month, it raised its maximum available LTV to 70%, after 10 years of this being at 55%.
Further, to streamline applications and improve transparency, the lender has removed risk premiums from cases from high-risk countries. It will now reflect jurisdictional risk factors into its core product pricing, removing additional costs for applicants.
Other high-risk factors will be considered on a case-by-case basis.
RAW Capital Partners has also reintroduced a flat £950 repayment fee, which can be accessed by brokers and borrowers in addition to its core offerings of decisions in principle within one business day and no stress testing.
Tim Parkes, CEO of RAW Capital Partners, said: “We’re always looking for ways to adapt and streamline our offering to better serve brokers and their expat or international clients. Since we raised our maximum LTV limit, we’ve experienced significant demand, but we were also keen to further improve and simplify our pricing structure.
“Today’s rate reductions and revised risk considerations will remove friction from the process, giving brokers and their clients a clearer picture of affordability from the outset. I’m confident our new-and-improved offering will land really well.”
