Funding 365 launches flexible three-year property loan products

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.” 

LendInvest launches three-year bridge

LendInvest launches three-year bridge

The product has been designed for experienced borrowers who are looking to raise capital, or looking to acquire a lower yielding property.

The bridge comes with interest of 6.99% per year – the pay rate is 4.99% with 2% interest deferred. It is available on loans between £100,000 and £2m with a maximum loan-to-value of 70% on day one (rising to 75% as interest on the loan is deferred and rolled up).

The product requires 11% interest cover minimum.

Matthew Tooth (pictured), chief commercial officer at LendInvest, said: “Following an influx of enquiries from borrowers seeking to purchase or raise additional capital against a low yielding property, we developed this product with this niche audience in mind. The 3-Year Bridge acts as an alternative to a mainstream buy-to-let product, tailoring a traditional bridging loan for a longer term.”

Chris Dailly, chief executive of Jumbo Bridging, said LendInvest is the latest bridging lender to extend its terms, plugging the gap left by mainstream lenders.

“It’s nice to see another product coming into the market to provide choice for borrowers. Nine years on from the credit crunch people still have problems getting development and commercial finance – the banks are still licking their wounds. That’s why bridging lenders are doing so well.”

The bridging product is LendInvest’s third launch in 2017, following the rollout of its pre-construction finance product in April and refurbishment finance in February.