Funding 365 launches flexible three-year property loan products
The lender said that the new three year and bridge-to-three-year products offer a “unique level of customisability” as the level of pay rates vs retained rates can be tailored to suit the yield of the borrower’s property.
Pay rates start at 3M LIBOR + 3.45 per cent per annum, with retained interest between one to three per cent per annum. This is dependent on security type, loan to value (LTV), loan size, borrower credit profile and desired pay rate.
Loans can be up to £3m in size and have a maximum LTV of 75 per cent.
An eight month bridge from 7.49 per cent per annum is included in the bridge to three-year product, and allows borrowers to exit within that time frame with no early repayment charges (ERCs).
Accepted securities include residential (including HMO), semi-commercial and commercial buildings across England and Wales. Borrowers with adverse credit will also be considered.
These new products are also available to brokers.
Funding 365 managing director Mike Strange (pictured) said: “Our research found that brokers and borrowers did not have enough choice in the mid-term property finance market, especially in scenarios where the loans would be secured against commercial and specialist properties.
“Our new three-year property loans will provide unrivalled solutions to borrowers who are seeking longer term and more tailored solutions than currently exist in the bridging market.”
Councils need flexible funding for house-building, says ICE
In its report ‘Delivering a Northern Infrastructure Strategy’ the body sets out its recommendations to drive economic growth and improve quality of life in the North, as part of the wider Northern Powerhouse initiative.
Along with encouraging central government to devolve revenue raising and borrowing powers and calling for the creation of a Northern Spatial Plan to “guide and coordinate integrated infrastructure development” ICE says local authorities should “put in place standard approaches to assessing need and have access to flexible funding arrangements for new developments”.
The report states: “Local authorities have caps limiting their borrowing for housing developments. These are based on the debt the council already has, which varies significantly across the country. It does not bear any relation to the number of houses they have or the demand for new housing. Therefore, despite the prudential borrowing rules in place on councils and historically low interest rates, few local authorities can finance new house building.
“Allowing local authorities flexibility will enable investment to provide high-quality housing, suitable for their location. In turn, this will help to retain and attracted skilled workers, therefore making a significant contribution to attracting inward investment and in stimulating regeneration.”
Scottish Widows cuts rates on £1m+ mortgages
The lender introduced its large loan range in 2016 – as part of its strategy of targeting professionals and high net worth individuals. In the first six weeks of 2017 the range has attracted more than £40m of business.
Today it has reduced its rates by 20 bps. A two-year fixed rate professional mortgage is now 1.64% for loans of £1m-£3m up to 60% loan to value (LTV), with a £1,999 fee. The rate rises to 1.84% for up to 75% LTV and 2.54% up to 80% LTV.
On its flexible mortgage, which is available to employed and self-employed borrowers, the rates are 10 basis points higher. Both types of mortgage have offset facilities and are available for new purchases and remortgages.
Product fees apply for each £3m of borrowing (so for loans of £3m to £5,999,999 two product fees will be payable and for loans of £6m to £8,999,999, three product fees will be payable).
Martin Fleming (pictured), managing director of Scottish Widows Bank, said: “Our £1m+ product range attracted more than £40m of business in the first six weeks of this year alone, and the combination of competitive rates, flexibility of offset and great service have helped us carve out success in this area. These new changes will enable us to continue building on that strength and grow completions significantly in 2017.”
He added: “We recently introduced our lowest ever remortgage rates with the built-in flexibility of offsetting to help brokers save money for clients. Making our large loan offering more accessible with a lower rate is part of our wider commitment to the market.”
In November, Fleming told Mortgage Solutions that the bank was honing its strategy to differentiate the lender from other Lloyds Banking Group brands, so for example, training its underwriters to understand complex income streams received by doctors.